First time Buyers, are you ready to become a Homeowner? Find a Realtor to work with to refer you to a lender and get pre-approved.
Buying vs. Renting
Take a paper and draw a line length wise in the middle. On Left side write buying and on the right-side renting. Wright down what you enjoy as a renter vs. a homeowner. Then, write Rental expenses vs Homeownership expenses. And then tax benefits, rental vs. homeowner.
Are you ready to become a Homeowner? If yes answer these questions: Do I have:
- A reliable job record that proves to be a reliable source of income?
- An employment history for at least 2 years?
- Were the bills paid on time?
- Enough savings and income to pay the loans you have as in student loans, cars, furniture, health?
- Savings or other source of income, cash for the down payment and closing costs?
- Enough income, savings, investment to pay the mortgage, bills, household expenses and extra for additional expenses?
- Can the Funds be Verified?
Next step, check your credit report. Download all three reports, free once per year, www.annualcreditreport.com. Keep in mind that, your lender has a more accurate credit report.
Getting ready to start house hunting:
What to do:
- Improve your credit
- Pay bills on time.
- Pay down debt
- Save money – down payment and closing costs 3.5 % to 5%
- Decide where you want to live.
- How soon have to be in your new home.
- Relocating? Talk to your Realtor to help and guide you What not to do:
- Close bank or credit card accounts
- Don’t apply for new credit cards or loans
- Don’t make big purchases – cars, furniture, vacations…
- Look for a Realtor to refer you to a lender and get pre-approved to know how much of a home you can afford.
Terms that you might ask yourself what they are:
Mortgage: Is basically a promise, agreement, or a loan which is an agreement between you and your lender. The loan allows you to borrow money to buy your home, and if you cannot pay it back it is secured by the home you purchased – If you can’t pay the loan, the lender has the right to take your home. There are four parts to a mortgage: Loan Principal, Loan Interest, Taxes, and Insurance. (PITI) And Private Mortgage Insurance (PMI) if you make a less than 20% down payment. It can be waived once you build 20% equity in your home. Then, you ask the lender to wave the fees, or refinance to get rid of it. Any questions? Need more information? Need a Realtor? Call or text 951.397.1707
Referrences: Cnet NAR Investopia