First Time Buyer Tips

Where do I start? Am I ready?

Just remember, we all got to start somewhere...even Donald Trump started somewhere...

In most cases, you should make sure you have a stable income, have been employed for at least 2-3 years, and be prepared to have a commitment to a property. Do you have a monthly budget? What kind of monthly payment would you like to have? These are the kind of things you should be thinking about.

Once you take all these things into account, contact me to get pre-qualified.

Renting vs. Buying - The Tax Advantage$

If your job and family status are likely to be stable for the next couple of years, or you're planning on remaining in the same city, now may be a good time to consider buying. Renting does have its place and its freedom, but when you're renting you are kissing that monthly payment goodbye...you're not going to see it again.

Mortgage interest and property taxes are generally deductible. You may have a slightly larger monthly payment when you own vs. rent, but remember to take into consideration the amount you're going to save in taxes. And you're going to be building equity.

How's your credit?

Your credit standing will affect the terms of your mortgage. If you're not sure about your credit rating, it's a good idea to give me a call at least a few months in advance. That way I can help get on the right path. Don't wait until the last minute to get your credit in line. You may regret it. You can help yourself now by paying your bills on time, reducing your total debt load and avoiding any unnecessary inquiries to your report. Remember to limit the number of inquiries on your credit report by only authorizing credit checks with the lenders you're serious about going with.

How much can I borrow?

Before you start working with a real estate agent, you will need to know how large of a mortgage you can get - there’s no point searching for the house of your dreams if it’s out of your price range. Start by setting up an appointment with me or by submitting a pre-qualification. Most good real estate agents will also require that you are pre-approved before they agree to work with you. Pre-qualification or pre-approval of a loan will not only help you know how much home you will qualify for, but also will show owners you're serious about buying.

The amount you can borrow will be based on your debt-to-income ratio. This ratio takes into account your total monthly debt and your total monthly pre-taxable income.

Do I need to put a down payment on principal?

In most cases you can get a better interest rate by putting money down on the principal, but we do offer 100% financing programs for those who qualify for them.

How much are closing costs?

Besides having to save for a down payment, other expenses such as lender and title fees, homeowners (hazard) insurance, property taxes, the appraisal, and survey seem to come out of the woodwork when you're purchasing a home.

Most lenders will also want you to have a "reserve"—money left in your savings account after you've covered all the costs. The only item we require you to pay upfront is the cost of the appraisal. This is typically $300 and something we are required to order. The rest can be covered at closing.

In many cases, buyers can find sellers who are willing to contribute to their closing costs. This money will help those of you who don't have a big cash reserve or have little or no money to bring to the closing table.

Is a condo the right choice for me?

Depending on your tax bracket, a condominium may be an affordable option for you and be a good way to get into the real estate market. Remember, most condo communities require a monthly home owners association (HOA) fee in addition to your mortgage, taxes, and insurance.

Know what you're getting yourself into...

Depending on the age of the house, many offers made on a home sale should include a professional home inspection. Before you sign on the dotted line, be confident about the condition of the home you are buying and the expenses you may incur as a result of purchasing that particular house. For the name of good home inspector, send me an email.

Have fun!

With all of this said, remember that buying a house is probably going to be the biggest purchase of your life and one that shouldn't be taken lightly. But by working with the right people and having the right preparation, your home buying experience should be an enjoyable one. To see a simplified graph of the loan process, click here.

Remember, frugality now will payoff later when you're enjoying your new home.

Ready to get started?

Call me direct at:
(352)895-5810

Questions? Email me today or.

Get the ball rolling. Get Prequalifed.