Your credit score is the first step to knowing how easy or hard your home buying time will be. Federal law allows you to get your credit report from all 3 (Experian, TransUnion, and Equifax) credit reporting agencies each year for FREE. Just go to www.annualcreditreport.com. I recommend you get one report from a different one every 4 months to check for mistakes. You also qualify for a free report if you’ve been turned down for credit. When you buy your first home, making monthly payments probably won’t be a problem. After all, you’re already paying rent to your landlord each month. It’s coming up with the lump sum needed for a down-payment that may seem impossible. Fortunately, there are options to make buying your first home a happy reality.
Here are some steps for first time home buyers:
- Decide mortgage broker or bank?
I believe it is important before you look for you perfect home to first learn about home buying finances and who do you want to finance your home. A mortgage broker negotiates between you and the bank.Over half of home loans are now financed through mortgage brokers. They can offer loans that banks may not, such as first time buyer loans, no or low down payment loans for police, firefighters, and teachers.
It is important to note that mortgage brokers are paid most likely by commission and/or “Yield spread premium” or points. For every 1% of the loan amount is one point. For example: A $100,000 loan will be 100 points. Mortgage brokers work an agreement with a bank and then typically add their commission to the loan amount. Therefore, shop around with banks and mortgage brokers to find what is best for you.
I have a history of working as a mortgage officer and am willing to help answer any questions you may have. I can also help you by offering my banking services and will assist you in getting pre-qualified. If you decide to search online, check with better business bureau for complaints against a potential broker. WWW.mtgprofessor.com is a good site to check out.
- Get pre-approved.
A pre-approved loan takes a short time to complete and allows you to know the price range of homes that will financial fit you and your family. Pre-approval letters also allow you to have better negotiation powers when you make an offer by allowing the seller to know that you are serious and have done your homework.
Throughout this entire process, try not to make any major purchases. Pay down your credit cards and don’t add any new ones. Your new home should not cost more per month than a third of your income. Try to keep your debt low from the time you are pre-approved to closing.
- Know what you want in a home.
Ask yourself: What do you want in a home? One story, two story, split-level, backyard, front yard? How big? What commuting distance would you be comfortable with from work, school, grocery stores, shopping, and friends? Are you willing to fix your new home? Get as detailed as possible about what you want in your new Las Cruces home.
- Be prepared to make quick decisions about purchasing a home.
Contact me for anything regarding the home that you are interested in. I am willing to give you my cell phone number so you don’t miss out on your dream home.
- Submit an offer.
The offer needs to be competitive, but will also meet your needs. Earnest money deposit will be asked requested. Usually 1% of the offer will be sufficient.
- Minimize contingencies.
(A Contingency clause defines a condition or action that must be met for a real estate contract to become binding.)
A minimal amount of contingencies on the sale of a home will help in accepted offers and closing the sale. I am willing to help with the sale of your current if need be.
- The inspector.
I am willing to coordinate an inspection and negotiate the seller paying for the repairs. The home inspector or appraiser will check the home for any problems or potential problems. This is good to know when you are making such a large purchase.
- Get to know your neighborhood.
There maybe zoning regulations and covenants that you need to be aware of, such as knowing if your neighborhood will allow commercial or industrial businesses. Some places will not allow RVs to be parked in certain neighborhoods.
- Know what appliances stay with the property.
I will make sure to note which appliances are included in the sale. I am excellent at negotiating for items or services that you would like included in the sale of the home.