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If you are a first-time home buyer, you are going to want to read these steps you must take to ensure a smooth experience. Purchasing a home is a exciting time for everyone and for most it’s the biggest purchase they will make. Knowing where to start how to prepare yourself and what to do are the questions that surround most first-time home buyers and here, we are going to answer some of the most commons questions. The amount you will need to purchase a home. Requirements to get a home loan, speaking with a lender, and where you can go to ensure for a smooth process. If you find this information, helpful feel free to share and comment.

Funds Available

The biggest and most frequently asked questions ” How much money do I need to save to buy a home? ” To answer that question as best as possible it will all depends on your Loan you get pre-approved for. In this example we are discussing first time home buyers which will be applying for a FHA loan or (First time home buyer) the regular amount required for your traditional FHA loan is 3.5% of the total home value. For example, If the home you are looking to purchase is $450,000, 3.5% would come out to estimated $15,750. You are going to want to contact your local banks and Mortgage originators to confirm your states rates.

Now that we covered what you will need for your down payment it’s time to discuss closing costs. Most first-time home buyers are unaware of closing costs or expect the seller to pay for them. Regardless you are going to want to make sure you are fully prepared and able to move forward specially if you find your Dream Home. You’re not going to want to let that opportunity pass you by. Closing costs are Typically 3% of the home’s Value so to use the same example if the home’s value is $450,000, 3% would be estimated $13,500 Bringing the total to $29,250.00. You will want to check your local Countys home median Price as well as it may differ from the example we used here.

Qualifications For A Loan

Other than having the money to cover your down and closing costs you will need to meet other qualifications. Such as Credit score and Job history. To get approved for a loan you can start with as little as having a 580 score, however you will ideally want to have a 680 Credit score if possible or better. We will discuss the reasons here in a bit. Other than your credit score you will need to be able to provide your two years of taxes filed consecutively this will confirm you have been employed for 2 years or more. Your most recent bank stubs can also be required by your Loan originator. You will want to check your local bank and mortgage originators to confirm your requirements in your area as each state can differ.

I’m sure you have heard of a Co – Signer, they are typically needed if the debit to income is to high or your overall yearly income is not sufficient for the price point you are searching for. Your Loan originator will be the one to advise you if a cosigner is something you might need in order to move forward.

Speak With A Lender

Speaking with a lender is going to be one of the biggest steps you take if not the biggest. You are going to want to take this step BEFORE seeing homes or searching for property. The reason for this all, the lender (Mortgage Originator) will be the one submitting your file and gathering your documents (Credit score, 2 Years of tax, Paystubs) in order to get a Pre-approval! Your Preapproval is going to let you know What your loan Max amount will be. For example, say your preapproval letter comes back with a 500K max loan this means you’re able to Finance a home no higher than 500K, this is why it’s important you speak with a lender and get your preapproval letter first, the last thing you want to do is start looking for homes out of your price range which can be very discouraging specially if you don’t qualify for that loan amount. Same is true if you are able to qualify for a higher home value. Your preapproval letter is typically good for 3 Months before having to reissue it. Giving you 3 months to search in your targeted area for your Dream Home. Keep in mind home buying is a process there is no such thing as cutting corners you’re going to want to do it the smoothest as possible.

What Not To Do

We have just covered steps you will need to take to start your path to your new home. Now we will briefly cover some DO NOT. Once you receive your preapproval letter you are going to want to save the money you have for your home and keep it in the bank! Do not open credit cards or buy a new card during this time! as it can affect your preapproval status. You’re going to need to have your funds in the bank as it has to be seasoned (Sit in the bank for a minimum of 2-3 months). Do not place offers on homes without seeing the property first! Homes will come up on the market every week! Rest assured you will find the right fit for you! There is a possibility you find the home and get your offer accepted! understand that is a process and not guaranteed a close only because the seller accepter your offer, don’t get discouraged if the deal falls apart your realtor should be able to guide you in your specific situation. Which leads us to our next topic

Smooth Transaction

You are going to want to find a local Realtor that will be able to connect you with a preferred lender, keep in mind you are free to work with whoever you choose. Your realtor and yourself must be on the same page and have a clear understanding on what your goals are as they will be submitting the offers and negotiating with the sellers agent. Your realtor will guide you through the contingency period, Inspections such as home, Termite inspections you are able to do during escrow. As well as negotiating Credits or repairs needed on the property. you can see why you’re going to want a agent that has a clear understanding of the business and understands your goals, your essentially one team. ValleyHomes.Properties is a local to Kern and Tulare County offering a team of Professional Agents. A team of Client care available to answer any questions you might have and most importantly understand the business to ensure you have a smooth as possible First time experience. You can contact them or find more information on our website. Kern & Tulare Counties Real Estate | Valley Homes

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