First Time Home Buyers

Finding and Financing a Home Made Simple

The Financing Process

• Determine your budget and how much you can afford.
• Get pre-approved for a mortgage using a reputable local lender.
• Gather the documents you will need. (Listed in photo =>)

Deciding on a Mortgage

Differences in Fixed and Adjustable Interest Rates

• Fixed Rate Mortgage: The interest rate stays the same for the entire term of the loan.
• Adjustable Rate Mortgage: The interest rate is linked to a financial index and may fluctuate with market conditions

Types of Mortgages

• FHA- These loans are insured by the Federal Housing Administration, a government agency. The borrower pays a monthly mortgage insurance to protect the lender incase the borrower defaults. A lower down payment is required for FHA loans (only 3.5%) and borrowers can ask for as much as 6% towards their closing costs. However, the monthly mortgage insurance last for the life of the loan.
• Conventional- These loans are secured by investors, therefore not insured like FHA or guaranteed like VA. A down payment of 5% is required to secure a conventional loan. There is almost a monthly mortgage insurance with these loans, however it drops off once the borrower reaches 20% equity. Borrowers can ask for as much as 3% from the seller to assist with closing costs.
• VA- These loans are guaranteed by the US Department of Veteran Affairs. VA loans are available to active and retired Veterans and their surviving spouses (assuming they have not remarried). If you qualify VA loans allow veterans to acquire a loan with 0% down.

* There are many other options available for financing, these are the most popular choices.

Calculating Your Budget

To estimate your budget, add up your total financial worth (Money saved for purchase)and then subtract all the cost in the purchase.

Some expenses you may carry:

• Down Payment
• Mortgage Payments
• Insurance
• Taxes

The Home Search Begins

Some things your should consider when searching for homes:

• Size of the property
• Type of neighborhood you desire
• Quality of School system
• Nearby transportation
• Urban or Suburban

If you want to get started searching online TODAY click the following link: Home Buyer Search

This website gives you a secure login and password to allow you to search the Multiple Listing Service. You can get directions, view maps of the area, and even set up showings through the site.

Writing the Offer

Once you have found the perfect home, I will write up the offer and ensure all paperwork and activities are completed so you can close on your property.

The Closing

This is where the transaction is finalized. I will guide you through all closing procedures to make your home officially yours.

MOVE IN!!

Foreclosures….What you need to know

Foreclosure is a legal process in which the mortgage lender makes an attempt to recover the balance of an unpaid loan from a borrower who has stopped making payments. The lender forces the sale of the home as collateral for the loan. The major difference from a traditional home sale or even a short sale is the home-owner no longer has possession of the house. If you are thinking about buying a foreclosure in the future there are a few things you need to know.

1. Get Pre-qualified

You should always get a letter of pre-qualification before you start your home searching process. This is especially important when searching the foreclosure market. Foreclosures are a very competitive market, since so many people are looking for a bargain. When you have already been pre-quailified for the purchase price of a particular property your offer looks stronger than your competition.

2. Budget for Repairs

Most foreclosures are sold in "as-is" condition. This means the bank will not make needed repairs to the property before the sale. The bank usually prices the foreclosed home at a price that reflects the needed repairs, so there is not usually much room for negotiations. Of course, you should always attempt to get a lower price.

3. Do Your Research

Pick an area you are interested in and do research on what comparable homes are selling for. Make sure you choose homes that have recently sold in the area that are as close as possible to that property. Some things you should focus on are : # of bedrooms, # bathrooms, square feet, school district, lot size, days on the market, etc.

4. Ask for Closing Cost Assistance

Since the bank is usually unwilling to make any necessary repairs you should have your realtor ask for the bank to help with closing costs. You have a decent chance of getting some of the closing costs taken care of by the bank. This will allow you to keep more money in your pocket to make repairs after settlement of the home.

5. Get a Home-Inspection

Even if the home is being sold "as-is" make sure you have a home inspection contingency written into the agreement of sale. This protects you incase there are major repairs that were unseen during your time looking through the home.


* To receive a list of the current bank owned properties in you area contact me TODAY.*


Chris Lawlor
Realtor @ Coldwell Banker Heritage
cell: 484-560-3226
office: 610-250-8880 ext. 350
Email: clawlor31@yahoo.com