Have you always dreamed of owning your own home? What steps do you think you have to take to get to your goal? Do you have a professional in the field of Real Estate to help guide you towards this goal? Does the possibility of starting the process overwhelm you? Well, here is some honest advise that you may be able to use!
There are many aspects to look at when starting the process of home ownership….
First step is to talk to a lender. They will look at your credit scores along with debt to income ration and help you decide what you can afford and what type of loan you may be able to qualify for. Lenders are online, at local banks and credit unions and through mortgage brokers. Mortgage brokers will have a variety of loan options and will guide you through the whole process, step by step. They usually do not sell your personnel information as well which is a plus as online loan companies will likely sell your information. (If you need names of mortgage brokers, I would be happy to help you with some trusted companies in our area.)
As far as loans go, there are conventional loans that usually require 20 percent down in order to qualify for this type of loan. This is 20 percent off the cost of the home that you decide to purchase.
There are FHA Loans that usually require 3-5 percent down. These loans usually require that you carry PMI insurance. Private mortgage insurance is required to protect the lender if you happen to default on your mortgage loan. You are considered higher risk being that you have not invested 20 percent into the purchase of the home. You see, if you’ve put down a chunk of your hard earned money, you are less likely to walk away from a loan because that would mean you would lose that 20 percent that you’ve invested. Hence….the PMI.
There are no down payment VA loans that veterans get from their military involvement.
There are USDA Loans that tend to be in more rural communities.
These are the most common type loan options out there. With acquiring a loan you will have certain cost associated with getting a loan. These fee’s are called closing costs. They are set fee’s, bank fee’s and title agency fee’s that you have to come to the closing table with. You will be given a closing disclosure closer to you closing date that breaks down all the fee’s that are involved with the closing. They are able to give you an estimate at the beginning of your process of these fee’s but are subject to vary a bit, they will have a more accurate price closer to the closing date.
Finding out what amount of house you are pre approved for is a necessary step. This pre approval will be required from you when you decide to put in an offer on a home. This document will get turned in along with your offer and shows that you can indeed afford to buy a house. A strong deposit is another positive step in order for the seller’s to see that you are a serious buyer.
While I know this type of article can bore the pant’s off of people, it is wise to get a head’s up on the process and a better understanding of what you will face while searching for your home. This is why having a trusted friend/Realtor is so important. We as Realtors will follow up with deadlines and help move the process forward all the way up to the closing date. Did you know that Realtors get paid by the seller’s? Having a Realtor when buying a home give’s you someone who is looking out for your best interests. We take care of all the legal contracts and negotiations that will happen and keep you as worry free as possible.
I hope you found this article helpful and if after reading this you would like some names of mortgage broker’s in our area, please email me at hollisarabryant@gmail.com.
Happy House Hunting!!!!
Gulf Coast of Florida Realtor 