BUYER TIPS
At Faith Properties we understand that purchasing a home is likely to be the single most important financial decision you will ever make. We have put together a simple home buying guide to help you navigate through the process.
THE HOME BUYING PROCESS
- Securing your finances: Before paging through magazines, looking at online listings, or calling a realtor, make sure your finances are in order. This will help you determine how much home you can realistically afford and be strategic with your search.
- Know your credit score and your debt to income ratio. You can create an average budget based on your income, assets, debts, and financial obligations using our mortgage calculator to ensure you can pay your mortgage on time each month. You’ll also need money for a down payment and closing costs, as most first-time homebuyers are expected to put down a deposit of 3% to 20% (or 3.5% for a FHA loan).
- It’s time to get you qualified. We will help you confidently approach a lender to evaluate your loan options after you’ve assessed your financial situation and developed a realistic budget. You will then receive a “pre-qualification” letter to estimate your borrowing power once you have found a suitable loan. “Pre-qualification” does not mean a promise to lend, and you will also need to be “pre-approved” to borrow.
- Search for a house and make an offer: You can now begin your property search with one of our licensed real estate professionals. You can browse listings online or have one of our agents do all the work for you. Several of the listings you view online may already have pending contracts, inaccurate and/or outdated information. That’s why working with a knowledgeable real estate agent with access to the most up-to-date information and technology is critical.
- Complete the mortgage process and have the property inspected. You will apply for a mortgage after you’ve reached an agreement with the seller. Our real estate agents will assist you in submitting your application, retrieving then verifying the required documentation. You will also want to invite an inspector to fully evaluate the property for quality and safety.
- Close on your new home: Once your mortgage is approved and the inspection doesn’t reveal any significant issues that warrant rescinding the contract, then its time to close. The funds are then transferred to the seller, you’ll be handed the keys and the home is officially yours!
TIPS FOR FIRST TIME HOME BUYERS
- Learn your credit score and repair it if it is less than 700. A good credit score will significantly influence your loan terms, interest rate and your monthly mortgage payment.
- Get Pre-Approved: “Pre-approval” signifies that you are eligible for a loan as long as your credit score remains in good standing.This is an important aspect of the home buying process because it gives you credibility with the seller.
- Hire a skilled real estate agent: You cannot navigate the real estate market on your own without making mistakes that you wouldn’t typically make with a qualified real estate agent. You’ll need an agent who is familiar with the area, market trends and can negotiate the best deals on your behalf. Our agents are trained to cleverly negotiate deals and clearly explain the terms of the contracts so you’re aware of what you’re getting yourself into.
- Do not rule out a home inspection: A home inspection will reveal whether or not a property is up to code and other problems that could make it an unsafe dwelling. A thorough home inspection can also ensure that you are getting the best deal possible. If it’s discovered that the property has major defects, you should rescind your offer.
- Purchase the home you can afford: Analyzing your current financial situation is key to purchasing a home you can realistically afford. A good rule of thumb to follow is to keep your housing expenses below 28% of your income.
