HOME BUYERS GUIDE - STEP 1
So you've made the BIG decision - you are ready to buy a house! Now What?!? I want to help you unravel the Mysteries of this process and help you avoid the Hassles!
SO LET'S GO - LET'S TALK ABOUT BUYING A HOUSE!
STEP ONE: "THE LOAN"
One of the worst things I, as a REALTOR, could do, would be to show you a house that you could not yet afford.
YOU HAVE TO BE PRE-APPROVED FOR A MORTGAGE LOAN:
Most REALTORS do not show property to Buyers unless the Buyer has been Pre-Approved for a Mortgage Loan - I do not show houses to a Buyer unless I have a Pre-Approval Letter from a Lender.
You contact a Mortgage Lender (get recommendations from your REALTOR, Friends, Family etc). This Mortgage Lender can usually get all of the information they need from you by phone or by email.
They will Pre-Approve you based on:
- Tri-Merge Credit Report (reports from the main 3 credit reporting cos)
- Review of - Income - Job Stability - Assets - Qualifying Ratios
These reviews and this information will allow the Mortgage Lender to recommend the best Mortgage Loan Program for you. Examples of Loan Programs: Conventional, FHA, VHDA (VA only), USDA, VA etc and blends of several loan programs.
Also your Mortgage Lender will give you a CASH TO CLOSE FORM, this is a preliminary GOOD FAITH ESTIMATE and will show you fees, closing costs, and will show you your ESTIMATED monthly payment including Home Owners Ins & Real Estate Taxes.
CLEAN UP ISSUES showing on your CREDIT REPORT - your Mortgage Lender can help you with this - DO IT IMMEDIATELY.
YOUR BOTTOM LINE
Your Lender will qualify you for a loan and they will give you a top amount for the LOAN AMOUNT and the amount of your MONTHLY PAYMENT.
It is your decision what you want to pay monthly, your monthly house payment includes: PRINCPLE, INTEREST, HOMEOWNERS INSURANCE & REAL ESTATE TAXES. Establishing the monthly house payment you are comfortable in making, then allows the Lender to establish the total AMOUNT of your LOAN & that gives you the PRICE RANGE for your HOUSE SEARCH.
You and the lender work to establish the amount of the loan you are comfortable with versus the amount of the loan you can get, THIS IS VERY IMPORTANT!!!
Just a note - talking to your friends about their home buying experiences & house payments is normal and can be good for getting basic information. However a word of WARNING- every home sale transaction is different, every buyer is different and therefore their situations are different resulting in different interest rates, different insurance rates, different loan options etc - so while this might be helpful for info gathering - it is not good for making your decisions.
You need to talk directly to your REALTOR, Mortgage Lender & Insurance Agent to get the bottom line facts as they apply to you and you alone. You need FACTS not OPINIONS.
Right now it is taking about 30 - 45 days to close on a house.
The $8000 tax credit money is taking about 2 months to receive
KATHY MYERS CARSON, ABR, GRI
RE/MAX 1ST OLYMPIC - LYNCHBURG, VA
434-660-4025
kcarson@jetbroadband.com
Follow me on TWITTER @ KATHY CARSON
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"CALL MY SELL
