First Time Homebuyers Quickstart Guide
When you are purchasing your first home, it can be exciting and overwhelming at the same time. Luckily, we are here to help guide you through this process. Collectively, we have helped hundreds and hundreds of first time homebuyers.
To get you started off on the right track, here is our QUICKSTART 1,2,3 GUIDE to buying your first home:
- Get Pre-Approved for your financing (mortgage). During this step, you will talk with an experienced mortgage professional and complete an application. Based on your answers, you will then submit a few basic documents, such as pay stubs and bank statements. Your mortgage professional will analyze your application, credit, documents and overall qualifications to determine what you are qualified to borrow
- PRO TIP: If the mortgage professional is good at what he/she does, they will discuss your financial goals with you and tailor the plan around what you want and need.
- With a pre-approval in hand, now it is time to get a Realtor involved. Meet with a licensed, full time Realtor to discuss what you want in a home. Let their expertise guide you in the right direction. The internet is good, but information is many times outdated and can be mis-leading. A great Realtor makes all the difference, saving you a lot of time and money. We work with some of the best and can refer some to you if needed!
- PRO TIP: Write out exactly what you want in a house, and what you absolutely do not want. Communicate this directly to your Realtor. Ex. Bedrooms? Lot size? Style of home?
- Start Looking! Now is the time to start looking at homes, and window-shopping online. With the guidance of your Mortgage Professional (numbers/finances) and your Realtor (market trends/area information) get excited for the journey. Sometimes it takes a while to find the right house, and sometimes you get lucky and find it right away...but real estate has a way of taking a few twists and turns before closing day.
- PRO TIP: Be ready, excited, but BE PATIENT!
Start Step 1, by scheduling a call with one of your experienced Loan Officers: Schedule a Call Now
Here are some of the most frequent questions first time home buyers have:
Do I need to put 20% down?
No! There is often a misconception to how much you need to put down. While many people think it is 20% down, you can possibly go as low as 0% or 3% down. It all just depends on what you qualify for!
What is P&I?
The principle and interest, often called P&I, is the part of your mortgage payment made up of your payment to the loan amount (principle) and the interest accrued on it.
Are there specific programs for first time home buyers?
Yes, there are, like FHA loans, which allows you to buy a home with as little as 3.5% down! However, there is a lot of marketing to attract home buyers that can be misleading and more marketing driven (versus educational). One of the Pros at Monsour Mortgage Pros can educate you on what programs you qualify for. Don’t let the internet confuse you!
What is an Escrow Account?
An escrow account is an account that is set up for you to pay your home taxes and insurance. When you make your normal monthly mortgage payment monthly, the mortgage company will deposit a portion of those payments into the account, Then, they and will use these deposits to pay you property taxes and home owner’s insurance when they are due.
Why do I need a home inspection and appraisal?
A home inspector’s job is to look over the home, and make sure that you are aware of any issue, no matter how large or small, so you informed of any problems there may be with the home. While a home inspection is not required to get a mortgage, it is highly recommended to help make you comfortable and educated in your purchase. Home inspections are for you, the buyer, and you order one directly
Your mortgage lender orders an appraisal report. The primary goal of the appraisal is to determine what the home is worth. The appraisal shows the current value of the home at time of inspection. It compares the home to other similar homes in the direct area that have sold recently to determine value. The appraisal is also a comprehensive report that also includes specific information about the type of home, style, size, condition, marketability, etc. The mortgage lender, but not 100% of the time, usually requires an appraisal.
First Time Home Buyer Tips
Estimate your price range
You can use our affordability calculator to get an idea of what you might qualify for, but ALWAYS talk to one of our experienced mortgage lenders to be certain. The calculator is a good starting tool, but cannot replace the help of your loan officer.
Get pre-approved first
You should always get pre-approved before you look at homes. Not only does a pre-approval make your offer stronger, but it lets you know what you are approved for, so you do not search for properties out of your range. You can start you pre-approval process here
Internet has bad information!
While it is good to be informed and research things before making a big financial decision (like buying a home), be careful, because the internet has a lot of bad and misleading information. To buy a home, you need a professional to guide you. Rely on the Monsour Mortgage Pros- call us today to have an initial consultation before getting overly confused online.