Buying your first home is a major decision. As a homeowner there are many advantages. A mortgage payment, property taxes, and insurance is usually the same or slightly more than renting. Plus, you will build equity and each payment will be offset by tax savings from mortgage interest deductions.
A big hurdle as a first-time buyeris providing cash for the down payment and your closing costs. Ask your Town & Country Realtor® about first-time home buyer loan programs.
If you are a veteran, you may be able to receive 100 percent financing through a VA (Veterans Affairs) loan. Additionally, numerous conventional lenders offer 95-100 percent financing. If your income qualifies you for the necessary mortgage loan, your Town & Country Realtor® may be able to negotiate a contract to finance your closing costs. The Seller pays a portion of your closing costs, and the price may adjust upwards. In order for the loan to close, the loan appraisal will need to support the higher value.
To start the process, visit with your loan officer to "pre-qualify" and establish your maximum loan amount. Your loan maximum, combined with your available cash, will determine your price range when looking for your first home.
As you shop for a mortgage, consider the overall cost, not just the interest rate. Typically, the higher the interest rate, the lower your up-front costs will be. In order to avoid any problems, ask about any hidden costs or special early payment penalties.
The home buying process can be an emotional decision, and you need the counsel of a reputable, knowledgeable Realtor® who can help you buy wisely. When you begin working with a Realtor®, insist that they work with you as a "Buyer's Agent" to be your advocate in the transaction. Generally, the Realtor® is compensated from the Seller's commission, so you will not pay to be represented by a professional Realtor®.
Our Town & Country Realtors® can help you evaluate the pros and cons of purchasing a single family home, condominium, or townhouse. Additionally, they can explain what the various types of ownership mean... For example, should you purchase a resale home or new construction, and what kinds of inspections or warranties are available and necessary.How does the price compare to similar homes on the market? Your Town & Country Realtor® can do a Comparative Market Analysis (CMA) to verify the value of the home you are interested in purchasing. Are you negotiating terms and other costs such as home warranty, as well as price? What do you do if inspections uncover needed repairs? Are there any factors in the house or neighborhood, which could create resale problems? What closing costs are considered typical? What if you cannot find a suitable property with the Multiple Listing Service? Can your Town & Country Realtor® approach For-Sale-By-Owners on your behalf?
After you have selected a community or neighborhood and visited several homes, the next step is to make an offer. If you and the Seller, with the negotiating help of your Realtor®, come to an agreement and execute a sales contract, your mortgage will be finalized. Lastly, your Town & Country Realtor® will coordinate closing dates so you can move into your new home!
To assist you with the many details of moving, see our moving checklist.
Contact us for friendly, expert advice, and helpful resources to assist you.