First Time Buyers
Buying a home is more complicated today than it was ten years ago. First-time buyers have more loan options to choose from, among other things. And then there's the whole housing market mess. The bottom line is that buyers must educate themselves about the home buying process like never before. And that's where I come in.
For most people, buying a new home is the largest financial move of a lifetime. So it only makes sense to do plenty of research before plunging into that process. This is even more true if you are a first time home buyer with no prior experience in this area.
That's the purpose of this website — to give you plenty of information and resources on the subject of buying a new home for the first time. Please stay a while, and I guarantee you'll learn some helpful tips!
Buying your first home is a big step. How do you really know that you are ready? There are hundreds of thousands of people out there that are considering buying a home. This is partly due to low interest rates over the past few years, and by a real push on the part of the housing industry to show the benefits of homeownership.
You've been saving your money and have enough for a down payment and your closing costs. The down payment will need to be between 3% and 20% of the purchase price or property value, whichever is lowest. Always aim to have that 20%. If you don't put at least 20% down, you will have to purchase private mortgage insurance, which will increase your monthly payment.
Closing costs usually run you 3% to 7% of the purchase price. You should receive a Good Faith Estimate of these costs within three days of applying for a mortgage. Keep in mind that this is only an estimate, and not the actual costs. But it should be close. Plan to pay the 7%, and then perhaps you will have some left over. It is better to have more than you need.
You know you are ready when you know how much home you can afford, and you are willing to stick with this. Your monthly mortgage payment should be less than 25% of your gross monthly income. There are lenders that will tell you that you can afford much more, but don't listen to them. Stick with what your budget says you can spend.
You are also aware that there are more dollars in a home than just the mortgage payment. You will need homeowner’s insurance, money for utilities, maintenance costs and property taxes.
You also are ready if you are willing to hold off any other loans or credit until you close on the property. The same goes for changing your jobs. You need to hold your life "as-is" from now until the closing. No new cars, no credit cards and no new jobs. Show that you are stable.
Not all real estate agents are REALTORS®. REALTORS® are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. This is done by attending regular classes and by paying semi-annual dues. Check out what I believe is the highest level of real estate knowledge in the country:
Realtors are the honest choice.
I strictly follow this code of ethics 24 hours a day, 7 days a week.
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