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!!