FIRST TIME HOMEBUYER INCENTIVES & 7 STEPS FOR HOMEBUYING

7 Steps to Take Before You Buy a Home 

First Time Homebuyers are often a little worried about getting started in the process of buying a home and don't know what to do first.  Below are 7 steps that most experts would agree on, and having a Realtor you trust to walk you through these steps is proven to be very helpful.  By doing your homework before you buy, you’ll feel more content about your new home.  Having a good Realtor on your side looking out for you can be an important key- but for a first time homebuyer...  Priceless
 

1. Decide how much home you can afford
Generally, you can afford a home priced 2 to 3 times your gross income. Remember to consider the necessary homeowner costs which must be covered: property taxes, insurance, maintenance, utilities, and community association fees, if applicable.


2. Develop your home wish list
Be honest about which features you must have and which you’d like to have.  Remember, this is your first home, and you may be able to work up to those like to haves the next time, but you need to be able to make payments on this one first.

3. Select where you want to live

Drive through the neighborhoods you think you may be interested in.  You may want to make a list of your top-five community priorities, such as commute time, schools, and recreational facilities.

4. Start saving
Have you saved enough money to qualify for a mortgage and cover your downpayment?  Even though ideally you should have 20% of the purchase price set aside for a downpayment, an FHA loan only requires 3.5% downpayment which can be a lot easier for a first time homebuyer to obtain.  A small downpayment preserves your savings for emergencies and you will still need to consider closing costs.

But Remember...   The lower your downpayment, the higher the loan amount you’ll need to qualify for, and the higher your monthly payment.

5. Ask about all the costs before you sign

A downpayment is just one homebuying cost. Your REALTOR® can tell you what other costs buyers commonly pay in your area—including home inspections, title and attorneys’ fees. Keep in mind the extras you’ll also want to buy after you move-in, such as window coverings and new furniture but don't buy these until you are closed on your new home.

 6. Get your credit in order

Your REALTOR® can help suggest several mortgage representatives to find out how your credit stands and you can pick the one you feel most comfortable with.  You can also order your credit report directly - You’re entitled to free copies of your credit reports annually from the major credit bureaus: Equifax, Experian, and TransUnion.  A credit report details your borrowing history, including any late payments and bad debts, and typically includes a credit score. Lenders lean heavily on your credit report and credit score in determining whether, how much, and at what interest rate to lend for a home. Most require a minimum credit score of 620 - 640 for a home mortgage.

 7. Get prequalified

Meet with a lender to get a prequalification letter that says how much house you’re qualified to buy. Start gathering the paperwork your lender says it needs. Most want to see W-2 forms verifying your employment and income, copies of pay stubs, and two to four months of banking statements.

If you’re self-employed, you’ll need your current profit and loss statement, a current balance sheet, and personal and business income tax returns for the previous two years.

Other web resources are listed in link below in the Homebuyer Training Voucher Program under Cerified Home Buying Training Agencies.

Get a free credit report from each of the three credit reporting bureaus

HOMEBUYER TRAINING VOUCHER PROGRAM

There is first time homebuyer training out there which can not only give you the training you need to make good homebuying decisions, but can also offer you the opportunity to take advantage of other first time homebuyer incentives.  This course normally costs between $50 - $80.

Would you like to take take the course for FREE!

For a limited time, as my client you can take advantage of the Home buyer Training Voucher Program for free!

This is how it works: First we will meet for a Buyer's interview and we will discuss your homebuying goals.  There is no charge for this meeting or to hire me as your Realtor.  Once you become my client, you will go to any Certified Home buyer Training Agency and pay for the course up front. Then we will send in a voucher application for you.  After your application is received, you will be reimbursed the entire course fee within 30 Days. Its as simple as that!  But Hurry - Funds are limited and will be disbursed on a first come first serve basis.  You may want to check out the websites of some of these agencies and see what incentives some of these have to offer.  Please click on link below to find the agency you prefer: 

Certified Home Buyer Training Agencies

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