First Time Homebuying Part II

Based on my July 22, 2011 Blog, a lot of folks are still interested in buying their first home.  In response to a number of questions about first time buying, I am adding a First Time Buyers, Part 2.  Some of the content may seem repetitious but it does need underlining.

First- financing is key.  Financing is the first and major hurdle first time buyers face.  So find a lender you can work with.  Interview at least two, and be honest in your answers.  Don’t let them hit your credit until you are ready to start shopping.**  A good lender will tell you this:   don’t make any major purchases until after closing; including:  furniture, cars, vacations, etc.  Don’t muddy the credit waters.

Second- is timing.  Don’t wait for the proper time.  No one can predict the bottom.  Rates are the lowest in anyone’s memory.  Make the time right for you.

Third- gifts.  With a conventional mortgage the borrower must have 5% of his OWN money to contribute to down payment and closing costs.  If not, the % down will escalate from the average 5% to 20%.  with an FHA mortgage a gift can be made without significant or matching borrower contribution.  Finding the right type of mortgage also enters into your decision.  Why, because not all condos, for instance are FHA approved.  All condos are in the process of recertifying for FHA approval following a September 2010 blanket cut-off.  Now everyone is scrambling.

Fourth- is also a major hurdle in the homebuying process.  Find a realtor you can work with and that you feel will do the best job for you.  That means a realtor is not just agreeing with you, but giving you straight answers.  For instance, what is the most important thought first time buyers should remember?  Resale.  As a first time buyer, you will be reselling your first home, so location is vital to your purchase.  Don’t just shop for a house, but rather shop for a location that works best for you and find the best house in that area.  Find a realtor whoseexperience will guide you through the purchase process and help relieve your anxiety.  You will have anxiety because I have had anxiety with every home purchase I have made.  Total so far is 14.  That’s a bit above the average, but I am a realtor.

Fifth-  While there are many opportunities to attend a homebuying seminar, it is important to remember that much of the information given there is very generalized.  Not all of the information given pertains to you and your situation.  To get a program specifically designed for you, please contact me at:  sam@myagentsam.com  and I will be glad to help you with your homebuying questions/concerns.

**Email me at sam@myagentsam.com for my preferred lender list.