Are you thinking about buying your first home
Are you thinking about buying your first home and aren’t sure of where to start or you have a lot of questions and don’t know who to turn to? I’ve addressed some of the initial questions that you might have in hopes that this will help you along the way.
1. Should I use a Realtor and how do I find one? A Realtor has the experience and knowledge of the local real estate market as well as the necessary paperwork needed to facilitate a transaction
2. How much money will I need to save for my down payment? This will depend on what type of loan you will be obtaining. Conventional loans generally require a 20% down payment, FHA loans 3.5% and VA loans 0%
3. How do I know if I qualify for a loan? The best place to start is by speaking with a loan representative. They will look at your current situation, your credit history, length of employment and other factors.
4. How do I find a lender? Go to the bank or credit union where you already have a checking or savings account and ask what types of mortgage deals they offer current customers.
5. What do I need to take with me when I talk with a lender? Pay stubs, bank statements and your last 2 years tax returns is generally enough to get started.
6. How do I know what type of loan is best for me? This will depend on your specific financial situation, length of time you will stay in the home, etc.
7. What is included in my mortgage? Principle and Interest (P&I) are always part of your mortgage. You may chose to have an impound account in which case your taxes and insurance (PI&TI) will all become part of your monthly payment.
8. How do I decide on how much to offer? Your Realtor will provide you with comparable properties that have closed in the surrounding area that are most similar to the subject property. This will give you a great starting place.
9. What do I do if my offer is not chosen? Not having your offer chosen can be very disappointing. What to do in this case would depend on the circumstances behind your offer. Was your offer extremely low? You may want to review the comparable properties to evaluate the fair market value and submit another offer.
10. What happens if my offer is chosen? Congratulations! You are now ready to open escrow. At this point in time, your earnest money deposit will be sent to the escrow company and your contingency period begins.
Would you like more information? Contact me at Ryan@TrinityREG.com
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