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Welcome to our first time homebuyer
series where you will learn how to shop
for the house apply for the loan and
close the deal with confidence.
Buying your first home can be one of the most
exhilarating
and stressful moments of your life and
getting everything order can be daunting
arm yourself with the advice of others
who've been there before and the
professionals in the field who've seen
it all this first video in our series
will help you understand today's
mortgage market find out if you're ready
to buy your first home getting yourself
ready for the purchase and understanding
the real cost what is today's mortgage
market light at one time it seemed that
anybody the pulse could get a mortgage
these lending habits were obviously
problematic and led to the housing
crisis of 2008 banks got bail outs and
millions of homeowners either lost their
homes or got stuck
owing much more on their mortgage than
their home was worth mortgage
underwriting has changed this is the
criteria used to approve your loan be
ready to show the lender that you're
financially prepared to take on a
mortgage payment are you ready
ask yourself this question with regard
to finances and consider how ready you
are emotionally the first thing to do
before buying a home is to make sure
it's the right time to do so
generally speaking owning a home pays
off financially if you live in it for at
least five years otherwise there's
nothing wrong with renting when you're
renting surprises don't require a lot of
emotional investment homeownership is
different if the furnace breaks for
property taxes rise that expenses on you
that's a potential financial burden but
experts point out that there's also a
mental and emotional cost there are
several things you can do to get
yourself ready for the home buying
process first you'll need to get your
finances in order to guarantee you're
financially ready to buy your first home
you'll need good credit cash to close
and a verifiable income meet with your
lender at the start of the process to
find out how much house and you can
afford and how much cash you'll need to
finalize the deal also known as the
closing second attend a first-time
homebuyer seminar and
the ins and outs from the pros third
make a down payment plan consider the
cash you'll need to make buying your
first home a reality the down payment is
typically between three and a half and
20% of the purchase price most
conventional mortgages require a minimum
downpayment of five to seven percent of
the cost of the home but some range as
high as twenty percent if you can swing
a higher down payment your loan costs
will be less and you'll get a better
interest rate lastly check your credit
score get a copy of your credit report
review for errors and possibly invest in
a few months of a daily credit score
monitoring service the three credit
bureaus Equifax Experian and TransUnion
are each required to give you a three
credit report once a year you can
download a copy of your credit report at
annualcreditreport.com a healthy credit
history is extremely important most
borrowers can qualify for a mortgage the
minimum score of 620 for the most
competitive interest rates will be offer
to those of the score of 700 or above
getting the lowest rate possible can
save you tens of thousands of dollars
over the life of a 30-year mortgage if
you're buying a home with a spouse or
co-borrower your mortgage lender will
likely consider both buyers credit
scores in the application process
finally remember that improving your
credit score significantly can take at
least six months so get started now if
you need to what is the real cost of
buying a home when budgeting for a new
home look at all the expenses associated
with it don't stop with principal and
interest and utilities cost of commuting
and upgrades don't forget to consider
cost that may be affected by moving will
the gas budget for your car go up if
you're moving farther away from the
places you frequently visit add three to
six percent more for the closing costs
which may vary based on where you live
and what taxes your state and city
require you to pay if you'll be joining
a homeowners association find out the
fees associated with that as well think
twice before taking on the expense of
renovating a house cosmetic upgrades are
one thing but anything that requires a
permit means big time expenses and
headaches have a serious conversation
with yourself about your ability to
handle the work the cost and the stress
of such a project
buying a home involves a lot of costs
and aren't necessarily hidden but can be
easily over
looks like a home inspection a title
search of property survey and real
estate taxes cause vary by location but
be sure to include these when budgeting
for your new home
don't forget routine maintenance can
also add up quicker than you think
in part two of this video series we will
cover shopping for mortgage picking your
team of professionals to help you
through the process and how to set your
budget see you soon
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