Buying Your First Home – Tips for Buying a Home
Purchasing your first home can be an incredibly easy experience if you follow some simple steps from the time you consider a home purchase to the time you close your home purchase and grab your keys.  Here are a few things you should consider.
1. Don’t Rush:
You should plan your purchase and take the time to save money for a down payment, closing costs and what is called “cash reserves” when purchasing a home. You can have your real estate professional help you negotiate some closing costs which can be paid by the seller providing the lending guidelines permit it.  Check with your mortgage loan professional.
2. Check Your Credit Score:
Be sure to check your credit score. Make sure you do not purchase items after applying to a home as it could effect your qualifying ratios. Check with your loan professional to help you define what credit score you need based on the guidelines.  There are many different loan programs to choose from, so, you have a lot of room to find a loan program that meets your home buying needs. You just need the resources and knowledge to find out which programs best serve your needs both long term and short term. Our loan professionals can provide solid and prudent answers.
3. Pre-Qualify for a Mortgage:
One of the most common mistakes that new home buyers and repeat home buyers make is not getting pre-qualified. In today’s real estate market, it is important to take the time to speak with a loan agent and have them help you with the task of getting pre-qualified.  It takes a short time to do so and you will have a more clear idea as to what home buying range you qualify for. Doing so, gives you power when your Realtor starts to negotiate on your behalf to make an offer. This is especially true now since most homes have multiple offers delivered at the same time. If you are one of the few that has a full loan approval or is placing more upfront cash into escrow (towards that offer), you will have an easier time getting your offer accepted by the seller. So, just take the time to get pre-qualified, or even better, get a full loan approval with the lender subject to conditions. The latter approach has even more power for you since it usually means a faster escrow closing for everyone.
4. Benefit from FHA or VA:
Consider mortgage loans which are backed by the Federal Housing Authority (FHA) and the Veterans Administration. These loans only require a minimum of 3.5% down payment plus closing costs (FHA), or even no money down under the Veterans Administration for veterans.  The underwriting guidelines are often more lenient, so it can be easier for those who have past credit challenges or job changes. Consult with one of our loan officer to get the details.
5. Working with a Realtor who represents both the seller and you:
Realtors can represent both parties to a transaction. This can be tricky and you should be aware that it might be the case in your situation. Try to be sure your Realtor is experienced and is representing all parties fairly.
6. Don’t Expect a Steal!
Given the typical marketing conditions you will discover that there is a lot of competition for home purchasing these days. Multiple offers are being delivered to the selling agent on behalf of the seller. Remember, the seller may agree to pay closing costs which could be beneficial to you when closing your transaction. Competition increases the selling price of a home. So, try to take advantage of the seller paying the closing costs.
7. Buy a 2-4 Unit Complex:
Consider purchasing a 2-4 unit complex since you can live in the 1st unit and rent out the other units. You can purchase more dwelling size and eventually rent out the unit you are living in and purchase a home in the future. This is a great strategy for a first time home buyer.  Plus, rental income property retains it value very well. It’s a great choice to consider.
8. Get a home inspection:
It is always wise to get a home inspection when purchasing a home. It can help you to discover any issue with the home which can usually be negotiated for adjustment in purchase price or just repaired prior to the close of escrow.  Plus, home inspectors can educate regarding the home when they deliver the completed report to you, via your realtor.  It’s a great decision.
Remember, LendPlus Financial is ready to help you with your home buying needs, so talk to a representative right now! Call 800-379-1328