Think your ready to buy a home?Let me show you where to start

First-Time Home Buyer Tips

1.)Pay Off All Debt and Build an Emergency Fund. At the very least here you want to have your debt under control . An emergency fund is always a great idea.

2.) Determine How Much House You Can Afford. A mortgage professional in any financial institution should be able to help you in figuring this part out. Ultimately the lending institution sets up a ratio for you ,30/40 for example in which the loan can’t be more than 30% of your income. You may want to figure out how much house you’re comfortable with. Even though you may be pre-approved for a mortgage of $500,000, after some calculation from your part, you ultimetly decide how much you are willing to pay monthly for a new home. Don’t forget to take into account taxes, utilities ect..

3.) Save a Down Payment. First time home buyers can benefit here; because they may under certain circumstances qualify for a FHA loan. This is a loan that is backed by the government which allows you a very low down payment often as low as 3% of the homes purchase price . Also; if you are a veteran as well with VA loans ,sometimes no down payment for qualifying veterans . There is also conventional loans which are loans offered through banks and other financial institutions normally you will need 20% of purchase price.

4.) Save for Closing Costs “Typically, home buyers will pay between about 2 to 5 percent of the purchase price of their home in closing fees. So, if your home cost $150,000, you might pay between $3,000 and $7,500 in closing costs. Onaverage, buyers pay roughly $3,700 in closing fees, according to a recent survey.” ~ Zillow

5.) Get Preapproved for a Loan.Pre–Qualified vs. Pre–Approved: An Overview Pre-qualifying is just the first step. It gives you an idea of how much of a loan you’ll likely qualify for. Pre–approval is the second step, a conditional commitment to actually grant you the mortgage. … “Pre–approval is verified consumer data—for example, a credit check.”

6.) Find a Home for Sale in Your Price Range. Your real estate professional will be your leverage to finding the best home for the best price.

7.) Research Neighborhoods for Best Fit.Location, Location, Location – it may seem like a cliche phrase you’d see in a real estate advertisement. But like most cliches, it comes from some truth. When you’re house hunting, location is one of the most significant choices you’ll make. Location affects affordability, value and your quality of life. Here are a few important points that you should keep in mind when scouting out different neighborhoods.

8.) Attend Open Houses and Think Long Term.

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Thank you,

~David Velez

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