Six Tips for First-time Home Buyers

First_Time_HomeOwner_Image_1344110563383Are you a first-time home buyer eager to get into the market? Here are some tips:

1. You may check the selling prices of comparable homes in your area of interest by speaking with your real estate agent. Your agent can give you a general idea of what you should expect to pay and may also direct you to websites where you can do a search of the Multiple Listing Service for homes that meet your criteria. LDSAgents.com has over 3,000 realtors across the USA and Canada who can help.

2. Your real estate agent will be able to recommend reliable lenders to speak to regarding a home loan.

3. There are many variables that can affect your interest rate. Your lender will be your ultimate source in helping you decide what kind of loan is best for you and what you can afford.

4. Know that your house payment may well include items like homeowner’s insurance, mortgage insurance (PMI), property taxes, and homeowners association fees. These costs can vary widely from state to state and location to location.

5. If you obtain a home loan, there will be closing costs associated with it. These upfront costs shouldn’t be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance and homeowners association fees. Again, your lender will be your valuable guide to these matters.

6. Last, but not least, consider a payment plan that enables you to pay off your home as quickly as possible. Paying off a home over 15 years rather than 30 can save you tens of thousands of dollars. One way to do this is to take out a 30 year loan (to guarantee lower monthly payments) and then make additional payments along the way as you are able. Talk to your lender about it.

Basic Steps for Buying a Home

home-for-sale-sign

Note: Your agent and lender will help you through all these steps!

Step 1: Start Searching Early—Homes frequently appear very different in person than they do on line.

Step 2:  Find the right real estate agent and lender: We can help at LDSAgents.com

Step 3: Determine how much you can afford by getting “Prequalified” for a home loan. See our video on “Prequalification”

Step 4: Shop for your home with your agent – This is the fun part!

Step 5: Get an Inspection – Your agent will help select a local inspector.

Step 6: Work with your lender to select the best loan for you. See our video on “Conventional, FHA, and VA loans”

Step 7: Have the Home Appraised—Your lender will normally take care of this (the appraised value must exceed the loan amount by certain criteria).

Step 8: Wait for funding to be approved by the “underwriter”.

Step 9: Meet with the title company or with the closing agent (depending on your state) to close the loan and the purchase. We recommend that you watch our video on “Closing Costs”