First Time Home Buyer

First Time Home Buyer - STEPS

First-Time Homebuyer’s Guide

Everything you need to know to take your first step into homeownership

Reviewing Your Financial Health

Seek the assistance of a capable Real Estate Agent

Get Started!

Your home buying timeline

Here's what a typical home buying timeline looks like for a first time home buyer...

(Write on a piece of paper to note your answers)

Getting Started

1. How Do I Know If I Am Ready To Buy A Home?

Begin by asking yourself these questions.

A. Do I have a steady income source?

B. Have I been employed for at least 3 years?

C. Do I have a good record of paying bills?

D. Do I have long term bills? (Car loan)

E. Do I have money saved for a down payment?

F. Can I afford a mortgage right now?

How Do I Begin The Buying Process?

Continue by asking yourself these questions...

A. How much can you afford in a monthly payment?

B. How many bedrooms do you need?

C. What area of town do you like?

D. How important are schools to you?

E. How close to work?

F. Do you want a condo/townhome/single family?

Getting pre-approved W/ A Lender

How Do I Know How Much A Bank Will Lend To Me?

Your lender will consider:

A. Debt-to-income ratio.

B. Compares your pre-tax income to housing and non-housing expenses.

C. Non-housing is long-term debt. (Cars, student loan, child support, alimony)

D. Mortgage should not exceed 32% of your gross income.

E. When combined with non-housing; should not exceed 40% of gross income.

Get help to get estimate of your closing costs and down payment.

Finding Your Home

How Can I Find Out What Homes Are Selling For In My Preferred Neighborhood?

Ask your real estate professional for…

A. Homes currently listed for sale.

B. Homes recently sold within last 90 days.

C. Homes that did not sell within last 90 days.

D. Your real estate agent has access to all this data.

E. Your real estate agent will provide you with a summary.

F. Based upon this data you will know current market value.

Feeling Secure About The Condition Of Your Home

How Can I Feel Safe & Secure About The Condition of The Home?

Include home inspection in your offer.

A. Ask agent to write into offer a condition on home inspection.

B. The average time required for inspection is 3-10 days.

C. Typical cost of inspection is $400 to $1000.

D. Inspector gives you detailed report on condition of home.

E. You may negotiate with seller on cost of repairs.

F. If not satisfied you can terminate your offer to purchase. (Refer to your agent)

Are There Any Other Inspections I May Need?

Additional inspections may be required for specific issues… (Consult with your real estate agent)

A. Asbestos.

B. Radon gas.

C. Water and well.

D. Septic & run off.

Other Inspections. . . 1

Placing An Offer To Purchase Your Home

How Do I Make An Offer On A Home?

Your real estate agent will draft your offer consisting of:

A. The amount of earnest money.

B. Down payment & financing details.

C. Your initial offer price.

D. Your requested closing date.

E. Length of time your offer is valid.

F. All conditions and disclosures.

What's Deposit Money?

What Is Deposit Money & How Much Do I Require?

It is the amount you ‘put down’ with the offer.

A. It demonstrates your seriousness to purchase.

B. The amount varies so ask your agent for the exact figures.

C. If your offer is accepted, it becomes part of your down payment.

D. If your offer is rejected, it is returned to you.

E. If accepted and later on you back out of the deal… it is lost.

Removing Conditions of your Contract

Most contracts have an inspection contingency period (conditions) where you have a certain amount of a time to get a home inspection and request repairs.

You need to carefully review your inspection report and talk through it with your real estate agent. Ask for advice and decide what repairs are important and what are not that big of a deal.

Home inspection reports many items big and small. You need to remember that all homes have flaws and the perfect house does not exist

The goal is to buy a home that works for yo, based on its current condition, or after you request repairs to be made.

Closing Activities

What Happens On Closing Day?

Here is a brief summary.

A. Your lender will provide the mortgage money to your lawyer.

B. You provide the balance of the purchase price.

C. You also pay the closing costs.

D. The title company pays the seller’s balance.

E. You sign the loan documents (mortgage)

F. The home is registered in your name

SUMMARY

Summary

The home buying process…

A. Looks far more complicated than it really is in experience.

B. Your real estate agent will walk you through the entire process.

C. It is a thrilling experience and one to enjoy.

D. Remember… your real estate agent is there to help you through every stage of the home buying process.

Ventris Blake

610-703-6639