Once you've made the decision to become a homeowner, there are some important steps you should take to begin the process. Taking a proactive approach to ensure these things are in order will ensure a better outcome in accomplishing your mission. Here a some things to consider:
Prepare a Budget- Take control over your finances. There's something to be said about putting things in writing. A budget will help put things in perspective to keep you focus on your goals and help in identifying just how much of a mortgage you can afford after calculating your current and upcoming monthly obligations. Your lender will base the amount they are able to lend on your debt-to-income (DTI) ratios so the lower yout DTI the more house you can afford. If your DTI is high the lender may require you to pay off some of your debt in order to qualify for the mortgage.
Review your Credit- Knowing your credit score is important. Not only does it show that you are on top of your game, but it gives you leverage when speaking with a lender in negotiating the best terms and interest rate on your loan. If its been a while since you've reviewed your credit, contact the 3 major credit bureaus to obtain a copy of your credit report that includes your credit score. You are entitled to one FREE report each year. A good credit score is anything between 640-700 and an excellent credit score is any score that is above 700. The lender will typically use the middle of your 3 scores to qualify you for the loan.
Secure Financing- Unless you are fortunate enough to be able to pay cash for your new home you will need to contact a lender/mortgage company to secure financing prior to contacting a real estate professional to find you a home. Your ability to qualify for a mortgage is based on the 3 C's; your credit worthiness, your capacity to repay the loan, and your reserve capital.Typically once you are approve you should shop at least one additional lender to determine which one is offering the best deal. Lender's sometimes charge unneccessary fees that can add up quickly; so pay close attention to what it's costing you to get the loan. Your Truth-in-Lending document should disclose this information
Contact a Realtor/ABR- Purchasing a home requires the help of a licensed real estate professional who can provide you with informattion and guide you through the entire process. Don't hire a realtor who will simply show you a few homes, write the contract, and then show up at closing to get paid. Hire a realtor like myself with an ABR designation that can provide you with the information and guidance you will need to answer any important questions, help you understand the legal contract you will sign, and most importantly provide you with valuable information when you're ready to submit an order to ensure that your offer is competitive, fair, and in line with recent sales.
Buying a Home is a BIG DEAL
Are You Ready?
1st Time Homebuyer Seminars
If you are thinking about becoming a homeowner and want to know more about the homebuying process, we offer 1st time homebuyers courses. These courses are intended to provide you with information and resources to make your homebuying process a great experience. Below are the (6) topics that are covered over a (6) week period.
Preparing For Homeownership
Know Your Credit
Working with A Realtor
The Homebuying Process
Why Do I Need An Inspection
For additional seminar information email Charlotte Johnson at firstname.lastname@example.org
Limited Capacity Registration is Required
Here are some options you may have:
Re-letting Clause-Your lease agreement may contain a Re-letting Clause. This clause allows you to buy out of your lease for the remaining term without having an impact to your credit.
Sublease- Subleasing allows you to find a qualified person to take over he remaining term of your lease. The person must meet all of the qualification of the apartments criteria and sign a new lease
Do the Math- Keep in mind if you only have a month remaining to fulfill your lease agreement, when you purchase you will have at least 30 days before your first mortgage payment is due; therefore you would not have to pay rent and a mortgage payment at the same time.
Are You Stuck In A Lease?
Click the phone to Download My HAR.com Mobile APP from your Android or iphone to get access to more current and premium content concerning a listing.
Apply For Financing
Mortgage rates fluctuate with market conditions, and are based on credit scores, down payment, and loan to value. In addition to the current low interest rates first time homebuyers may qualify for additional rate deductions or tax credits that could lower their monthly mortgage payment.
Mortgage rates may vary based on credit score, equity, and down payment. Rate/APR are calculated on 365 day year with typical closing cost. Rates and APR can change with loan amount and the percentage of home being financed.
Contact Me for lender recommendations for pre-qualifications.
If credit problems are the #1 reason why you have not considered purchasing your dream home there are solutions to your credit problems.
According to the experts from National Credit Care, there are five major catagories that comprise and drives your FICO score.
National Credit Care can help alleviate the stress of working with creditors and credit bureaus. Click on the icon below or contact Drew Martinez at
866 -595-6313 Ext. 311 for further information.
35% Payment History: the record of your on-time/late payments
30% Available Credit: your credit limit minus the amount owed
15% Length of History: time elapsed since each account was opened
10% Type of Credit: mortgages, installment loans, revolving, etc.
10% Inquiries: records of inquiries logged when you apply for credit
GET YOUR FREE HOME BUYER'S TOOLKIT
This 10 step home buyer kit walks you through all the steps of purchasing your new home.
Finding a buyer representative
Assess your credit and finances
Assess your wants and needs in a home
Search for your home
6. Obtain a mortgage
7. Prepare for the closing day
or Call 832 816-5287
Other Helpful Links:
Why Sign a Buyer Representation Agreement
A buyer's representation agreement is a legal document that establishes and formalizes your working relationship with a realtor. It outlines the duties and expectations of both parties and the level of service you should expect to receive. Either party may terminate the agreement in the event the duties or expectations of either party are not met or are unable to work together.
In a real estate transaction when the seller signs a listing agreement to place their home on the market for sale they have establish an agreement with their realtor to promote their best interest to get the highest price that they can for their home. As a buyer, you are entitled to the same protection. The buyer representation agreement gives you peace of mind knowing that you have someone working for you who will negotiate the best offer and price and keep you abreast of legally binding sensitive timelines.
Whether you are purchasing a new or existing home hire a Accredited Buyer's Representative who will work for you by signing a buyer representation agreement.