Owning a home may be your dream, but in order for the purchase to be the happy and satisfying experience it was meant to be, you need to ensure that you are financially and mentally prepared for the responsibilities that come with it.
Before purchasing a home for the first time, it is imperative to learn more about the process of purchasing. We are here to educate and help you walk through the process step by step - from getting qualified, finding your new home, walking you through home inspections, financing, and last but not least, to signing on the dotted line.
Finding the right lender and loan program for you is one of the first steps you should take. There are a number of loan programs available and many opportunities for first time buyers to purchase with little to no money down.
The right lender will guide you to the program that works best for you and your budget. The right lender will also assess your credit score. If your credit is not quite where it needs to be, the right lender will let you know what needs to be done to make improvements to your credit score in prepartion for your home purchase.
The right agent will walk with you through the process, educate you along the way, have reputable resources available to you and make the process as smooth as possible. If you're ready to take that leap into home ownership, let us know. We love helping first time buyers, and will walk you through the process one step at a time. From start to finish, we will be there looking after your best interests because we're here to help.
Owning your own home is about more than just being able to decorate any way you like; it's about being prepared to maintain your home over the years, realizing that part of your income and time will go towards repairs and maintenance. It's about being willing to take the risks of home ownership with a realistic expectation of the rewards.
It can be discouraging to find that your salary won't stretch as far as the home you want to own. However, sacrificing a huge part of your income just to pay the mortgage can very quickly make home ownership a burden rather than a point of pride. It's better to buy a modest home now and look at purchasing your "dream home" in a few years.
This is something that lenders take very seriously. Your overall debt should not be more than 40% of your income, and your housing debt should not be more than 32%. What 32% of your income will buy depends on where you want to live. In rural or downtrodden areas for example, it can buy a very comfortable residence and ample acreage. In highly sought-after urban areas however, it may not even buy a 400 square foot bachelor suite.
Do you like the idea of cleaning your own gutters? Do you shudder at the thought of lawn care? Would you rather just pay a fee every month and have everything done for you? Would obeying rules about when you can have your garbage cans out bother you, or do you want to live in a neighborhood where everything is 'just so'? The answers to these questions can help you narrow down the search for the right type of property for you.
You need a good agent who will work hard for you. Our real estate team is dedicated to helping you find the right home, at the best price. We want you to find the home that will make you happy and successful in real estate ownership.
When you hire us to help you buy your first home, we want to know what you want and how much you can afford. Then we'll find a way to merge these two priorities and find a residence that you'll enjoy owning.
Work with the right lender. Working with the right lender is crucial in the home buying process. The right lender is going to work with you in finding the right loan program for your budget and needs. The right lender will help guide you through the mortgage process and work with you throughout the process by communicating and educating. Most popular mortgage products for first time buyers include:
USDA (a government backed loan program) has a loan program where certain buyers can purchase with no money down. There are income restrictions for this program and if it's not a fit for you, there's always and FHA loan.
FHA loans require a minimum down payment of 3.5% of the purchase price and there are no income restrictions.
There are also conventional loans available for those with only 5% or 10% down or you can go the "traditional" route and put 20% down,
The right lender will guide you to the mortgage product that works best for you and your budget. The right lender will also let you know what needs to be done to make improvements to your credit score if it's not quite where it needs to be to make a purchase.
Keep your objectives in mind when visiting a home. Sometimes the idea of owning a home can overwhelm your practical sense, so keep your feelings in check. Keep a list handy of the features that you need and want in a home, and judge each home by the list instead of by details that could distract you from your goal. When you're alone with your agent, you can go over the pros and cons of each home. We can help you stay on track while still keeping our eyes out for a great property.
Make the offer. This can be a maze of "buyer", "seller", "chattels", "deposit", and "completion". We'll be happy to prepare the paperwork and go through it with you before submitting it. Remember, the seller may reject or counter your offer, so even at this late date, avoid setting your heart on the home you hope to own. You'll probably have to write a deposit check to the seller's broker that proves the seriousness of your offer.
Get all necessary inspections done. A home inspector will check for signs of harmful materials like asbestos, lead paint and mold. They'll also check for evidence of pests, faulty wiring and leaks. This is a crucial part of the home purchase. Not getting an inspection done means that you could be stuck in a home with a bad case of black mold and no recourse other than to pay for its removal. Inspections will cost a few hundred dollars, but again, this is more than worth it in the end. There are several inspectors in the area that we'd be happy to recommend.
Do a final walk through before closing the deal. We will do a final walk through with you to make sure that everything agreed upon is completed prior to the final signing.
From the first interview that determines your requirements to the moment that you receive the keys, we can help you with the complicated process of buying a home. Don't hesitate to contact us to find out more about how we can make the home buying process easier!
If you are a first-time home buyer, use the guide below for helpful hints and tips and learn how to avoid common mistakes when buying your first home in Central Florida, FL.
All the above may seem rather overwhelming. We understand that and are here to help you keep track of all the details. Please contact us directly to discuss any of these matters in further detail.
