Purchasing a home is one of the biggest decisions you will make in your lifetime. So, it’s not something you should take lightly and without lots and lots of research.
I will offer a list of suggestions to get you started with buying your new home. Hopefully this will be helpful to our first-time buyers, as well as our seasoned buyers.
- Do a full financial budget. Don’t forget to include the small things, like entertainment, non-budgeted trips to the store, a small toy for the kids, that happy meal for the kids etc. If you’re not sure of how much you really spend. Keep a small journal and write down the amount you spend, every time you make a purchase.
- Determine how much you can afford to spend. I would recommend doing this before going to the loan officer. They may say you can afford more then you are comfortable spending every month. Know your budget ahead of time, so you can stay within your budget.
- Check your credit. You get a free credit report each year from all three credit bureaus Equifax, Experian and Transunion. You can go to each site and obtain your free report.
- Find a good loan officer to get pre-qualified or pre-approved. I have suggested several good loan officers on my site. But, you can ask friends, family or co-workers who they used for their mortgage loan and did they like them. Remember, a good loan officer communicates with you and lets you know what you need to get a mortgage loan if you may have issues. If they don’t follow-up, return your phone calls or provide you with detailed information about the loan options to include down payment, closing cost or any out of pocket needed to obtain the loan. You may want to consider another loan officer or mortgage company.
- Find a good Realtor to help you find your dream home. You’ve already found me, so just give me a call so we can get started with a plan to get you into your new home 972-638-9590.
- Gather all paperwork needed to get a mortgage loan. The hardest to get is usually two years of your tax returns. Other paperwork you will need are pay check stubs, bank statements all pages, rental history among others that would be requested from your loan officer.
- Be ready to pay earnest money, option fee, home inspection, home appraisal, final appraisal and closing cost.
- Find your home and put in an offer to purchase. Once you have agreed on a price to purchase and all paperwork is signed you are under contract.
- Do any inspections and negotiate repairs if necessary, during option period.
- Get everything into loan officer that is needed to close your loan.
- Cross your fingers and wait for appraisal to get back.
- Sign a bunch of documents promising to pay back your loan, also known as closing!
Congratulations, you are a home owner!
This is a condensed list of the home-buying process. If you have any questions, please feel free to reach out to me to answer any specific questions you may have.
I hope this helps you get moving in the right directions. CALL ME, I will be glad to help!
This is a mortgage loan program.
I am the Realtor! The person who helps you find the house, negotiate a good price etc.
Don’t forget about me, when you get to the home search part!
I’m always looking for ways to help make it easier to purchase a home. And, I found a good one this time!
It is called NACA or Neighbor Assistance Corporation of America. Their goal is private and fight predatory mortgage lending. So, they have teamed up to create a loan that will allow future homeowners to purchase homes without the high interest rates, fees, points… and the list goes on!
So, they offer a true no money down, no closing program. And, the best part is you DON’T need perfect credit! Okay, this is how the program works.
- You must attend their mandatory informational seminar. It explains how the program works and gives complete details on what is needed to qualify for the loan.
- After the seminar, you will make an appointment with the Housing Counselor.
- The counselor will run your credit and go over your payment history, as well as go over your overall financial history. (Credit score does not matter.)
- *Note- You can NOT have any accounts late, in collections, or liens (including medical) within the last 24 months. They will need to be paid off, settled for less with documentation to confirm, or on a payment plan.
- Must be able to show at least 12 months on time payments for all accounts. (There are exceptions to this rule.)
- Your out-of-pocket cost will be approx. $3,500. Consisting of Earnest money $1,0000, home inspection between $350-$500, homeowners insurance $600, pre-paids $1,200.
- Maximum loan amount $251,713 anywhere in Dallas/ Fort Worth area.
- Requires at least 1 year steady employment for W-2s. Self-employed requires 2 years tax returns.
- Must show a steady monthly savings pattern in one bank account. Not through multiple accounts. Specifically, savings for the difference of current monthly rent payment and future mortgage payment. For example, your current rent is $800 a month, but your mortgage payment will be $1500. You must be able to show you can afford the additional $700 in mortgage shock.
- You don’t have to be a first time buyer. However, you cannot currently be named on a mortgage.
The seminar is of course more detailed, but those are some of the main points. You can sign up for the seminar on www.naca.com. They are generally held every Saturday of the month at a church in the area.
Let me know if you need help signing up!