Before getting a mortgage or any kind of loan, you should always check your credit. According to the law, you're allowed to receive one free copy of your credit report per year. You can do this by visiting Annualcreditreport.com. Scores range from approximately 300 to 850; generally, the higher your score, the better loan you'll qualify for. Don't forget to check your report for errors. If there are any, dispute them. It may help your credit score. You can also check your credit score for free at www.creditkarma.com.
You can calculate how much you can afford by starting online. There are several online mortgage calculators that will help you calculate an affordable monthly mortgage payment. Don't forget to factor in money you'll need for a down payment, closing costs, fees (such as fees for an attorney, appraisal, inspection, etc.) and the costs of remodeling or furniture. Remember that you don't always have to put down 20 percent as your parents once did. There are loans available with little to no down payment. An experienced home loan expert can help you understand all your loan options, closing costs and other fees.
To find the right mortgage lender it’s best to shop around. Get recommendations from your friends and family and check with the Better Business Bureau. Talk to at least three or four mortgage lenders. Ask lots of questions and make sure they have answers that satisfy you. Make sure to find someone that you are comfortable with and who makes you feel at ease.
Once you have the right mortgage lender, make sure you at least get a pre-approval. Qualifications are only a guess based on what you tell the lender and are no guarantee, whereas a pre-approval will give you a better idea of how big a loan you qualify for. The lender will actually pull your credit and get more information about you. However, you could even take it one step further by getting an actual approval before you start home shopping. That way, when you're ready to make an offer, it will make the sale go much quicker. Besides, your offer will look more appealing than other buyers since your financing is guaranteed.
Make a list of the things you'll need to have in the house. Ask yourself how many bedrooms and bathrooms you'll need and get an idea of how much space you desire. How big do you want the kitchen to be? Do you need lots of closets and cabinet space? Do you need a big yard for your kids and/or pets to play in?
Once you've made a list of your must-have's, don't forget to think about the kind of neighborhood you want, types of schools in the area, the length of your commute to and from work, and the convenience of local shopping. Take into account your safety concerns as well as how good the rate of home appreciation is in the area.
Now that you've found the home you want, you have to make an offer. Most sellers price their homes a bit high, expecting that there will be some haggling involved. A decent place to start is about five percent below the asking price. You can also get a list from your real estate agent to find out how much comparable have sold for. Once you've made your offer, don't think it's final. The seller may make a counter-offer to which you can also counter-offer. But you don't want to go back and forth too much. Somewhere, you have to meet in the middle. Once you've agreed on a price, you'll make an earnest, which is money that goes in escrow to give the seller a sign of good faith.
There are many different types of mortgage programs out there, but as a first-time home buyer, you should be aware of the three basics: adjustable rate, fixed rate and interest-only.
Adjustable rate mortgages (ARMs) are short-term mortgages that offer an interest rate that is fixed for a short period of time, usually between one to seven years. After that, the interest rate can adjust every year up or down, depending on the market. These are good for people who don't plan on living in their home very long and/or are looking for a lower interest rate and payment.
Fixed-rate mortgages are more traditional and offer a fixed interest rate (and thus a fixed monthly payment) for a longer period of time, usually 15 or 30 years, though they're available in 20 or 25 year terms. These are good for people who like a predictable payment and plan on living in their home for a long time.
Both fixed and adjustable rate mortgages can have an interest-only payment. What this means is that for a certain amount of time during the loan term, you're allowed to pay only enough to cover the interest portion of your payment. You can still pay principal when you wish, but don't have to if your budget is tight. There is a myth that with interest-only mortgages, you don't build equity. This is not necessarily true, since you can build equity through home appreciation. The benefit to interest-only mortgages is that you increase your cash flow by not paying principal.
Remember to ask your mortgage lender or mortgage banker lots of questions about which mortgage is right for you and your situation.
Make sure you get a home inspection before you close. It will be well-worth the money spent since it ensures the property's structural soundness and good condition.
Setting the closing date that is convenient to both parties may be tricky, but can certainly be done. Remember that you may have to wait until your rental agreement runs out and the seller may have to wait until they close on their new house.
Be sure you talk to your mortgage banker to understand all the costs that will be involved with the closing so there are no surprises. Closing costs will likely include (but are not limited to) your down payment, title fees, appraisal fees, attorney fees, inspection fees, and points you may have bought to buy down your interest rate.
've got your mortgage, closed the deal and now it's time to move in! Whether you use a mover or not is up to you, depending on your financial situation and how much stuff you have to move; perhaps also, whether you have a lot of friends willing to help you move. Either way, you're done with the home buying process! Just start unpacking and start enjoying your first home! Buying a home for the first time doesn't have to be a hassle if you're prepared and you know what to do and when to do it. Choose an experienced home loan lender and a friendly, knowledgeable real estate agent-they are the key to helping you have a smooth home buying experience!
Content for the Selling Page ** You're ready to Sell Your Home ** Getting Started The first time we meet, we will discuss what your selling objectives are. This is a good time to ask questions, and I will give you an idea of what to expect during the selling process. We will discuss preliminary ideas for pricing and house preparations. I will provide you with a complete Comparative Marketing Analysis for your property. Preparing Home/Property Before putting your home on the market, we want to ensure it is most attractive to potential buyers. Knowing how to showcase and accentuate the best features of your home, without incurring unnecessary expense, is at the core of what I do. I will provide you with a detailed Home Preparation Consultation and a Selling Tips Sheet. As we walk through your property, we will discuss minor repairs, curb appeal tips, staging, and making your property feel welcoming to potential buyers. If staging is necessary, I will share some options based on your property. Determining List Price Pricing your home competitively, at the start, will create more activity among brokers and buyers and lead to a more successful sale. Establishing the value and list price for your property involves researching and comparing similar properties and weighing factors including location, condition, amenities, and market conditions. We will arrive at a competitive price aimed at generating strong buyer activity. Processing the Sale & Closing The complexities of processing transnational documents will be made very easy for you through my continuous guidance and communication. I will review all offers and terms of each offer with you and negotiate on your behalf so that you obtain the highest possible price for your home while limiting your exposure and protecting your bests interests. Once your home is in escrow I will prepare all seller required disclosures and reports, attend appraisal with recent comparables to support your purchase price when possible, and make sure all contingencies and repair requests are removed in a timely manner per the contract. Communication between us is imperative and I can assure you that you will be informed every step of the way. Close of Escrow Congratulations, you have now sold your home! I will provide you with helpful moving hints and also be there to answer any questions. I am always available to help you should a question arise after the close of escrow and I want to ensure that you are 100% satisfied. My Plan Of Action For Getting Your Home "SOLD!" 1. Submit your home to our local Multiple Listing Service. 2. Price your home competitively … to open the market vs. narrowing the market. 3. Promote your home at the company sales meeting. 4. Develop a list of features of your home for the Brokers to use with their potential buyers. 5. E-mail a features sheet to the top 100 agents in the marketplace for their potential buyers. 6. Suggest and advise as to any changes you may want to make in your property to make it more marketable. 7. Constantly update you as to any changes in the marketplace. 8. Prospect 3 hours per day and talk to 20 people per day looking for potential buyers. 9. Contact, over the next seven days … my buyer leads, Center of Influence, and Past Clients for their referrals and prospective buyers. 10. Add additional exposure through a professional sign and lock‐box. ON 11. Whenever possible, pre‐qualify the prospective buyers. 12. Keep you aware of the various methods of financing that a buyer might want to use. 13. When possible, have the cooperating Broker in the area tour your home. 14. Follow‐up on the salespeople who have shown your home … for their feedback and response. 15. Assist you in arranging interim financing … if necessary. 16. Represent you on all offer presentations … to assist you in negotiating the best possible price and terms. 17. Handle all the follow‐up upon a contract being accepted … all mortgage, title, and other closing procedures. 18. Deliver your check at closing.