Tuesday, June 26, 2012

Buying Real Estate for the First Time

Buying real estate for the first time can be an exciting point in your life.  Most people dream of what their first home will look like and are anxious when the time finally comes.  However, there are a few things you want to take care of prior to buying your first home.

1. Know your credit
The first thing a lender is going to look at is your credit and FICO score.  Your FICO score will be within the range of 400 to 850 with 850 being the high end.  You want your FICO score to be as high as possible.  Take the time to attain a credit report and find out exactly what your score is.

2. Know your finances
As soon as you know your credit score, the next step to buying real estate is knowing your finances.  You are going to find that the down-payment to purchasing a home can be quite a huge hit.  Just keep in mind that there are many different loans/mortgages out there that offer low down-payment options for you.  But you do not want to get into a home you cannot afford.

3. Get pre-approved
When you meet with a mortgage broker or banker, you want to ask them to pre-approve you.  Pre-approval is an underwriting of your file and will help you identify how much you can actually spend on a house.  You will have to provide your income documentation, credit and many other things in order to underwrite your file.

4. Down-payment assistance programs
Most people are not going to be able to pay for the entire home upfront and may not even be able to afford the down-payment.  As you meet with your mortgage broker or banker, have them look at down payment assistance programs for you.  Having them look for you will help you find what programs are available and if you qualify for them.

5. First-time home buyer classes
When buying real estate for the first time, look into first-time home buyer classes.  You will find that many lenders and realtors offer home buyer education classes.  This will help you learn about applying for a loan, working with a realtor, bargaining, making an offer, and going to closing.  The more you know about the overall process the smoother it will go for you.
Buying your first home is a huge step.  While it can be a bit overwhelming if you are unprepared, there are classes and programs that can help smooth the process.  Keep in mind the five steps in this article as you look into buying real estate for the first time.

If you're looking for a home in the lake area please contact the Spouses Selling Houses team. Until next time. Ebbie :)!

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