I am buying a house for the first time?

Question

What do I need to do from step one, like mortgages, down-payments, and other things.

I have been pre-approved now what?

Answer 1

That is a very long list. I used the following website the last time I purchased a home. I found it to be the best. http://ourfamilyplace.com/homebuyer/checklisthtml Good luck! Don't trust your agent to do the work for you. They all have friends that they recommend you do business with. The people they recommend have one another's best interests in mind, not yours.

Answer 2

First find a reputable Mortgage lender and get pre-approval (this is better than pre-qualified). This way you will know how much money you can get financed. They can also go over all the mortgage loan options available. No sense looking at homes you can't get financing for. Once approved find a reputable Real Estate Agent in your area and start looking. Some real estate companies offer first time home buyer seminars. I would attend one of those too.

Answer 3

Get Pre-qualified for a loan!
Decide what kind of payment you would be comfortable with. Then, I would advise that you pull your own credit scores first, and then shop around with them. Based off your preferred payment and credit score shop to see who will give you the best rate and the most money. Never settle with the first loan presented to you. Shop banks, mortgage brokers, your credit union, etc. But be sure to SHOP AROUND! Most people will settle with the first person they talk to. There's always a better deal out there.

Once you've taken care of where the money is coming from, shop around for a Realtor. The best way to find a Good one is to ask around. Ask family/ friends/ coworkers who had an exceptional experience with a Realtor. Once again SHOP AROUND. Never settle with the first one to come around. A good Realtor will walk you through the rest of the process and take care of most everything else. They should keep you well informed, be a great listener, not waste your time, and be trustworthy. We Realtors are a dime a dozen though, and just as in every other career, there are those who are great and those who are... well, collecting a check.

GOOD LUCK!!!

Answer 4

Be careful first of all. But the suggested about of a down-payment is 20% of the cost of the house, this keeps your interest rate down, and keeps you from having to buy mortgage insurance...which significantly raises your monthly payment. You can get mortgages without it, but expect to pay extremely high rates. You should really try to get a fixed mortgage, ARM or adjustable rate mortgages will really bite you in the butt later since the payments balloon. It's a good idea to get a lawyer to keep from the mortgage company swindling you, but it is not absolutely necessary. I would suggest it though. Make sure that when you go for your mortgage that you have these documents ready: your last 3 months check stubs of all parties signing, you will have to fill out forms proving your living arrangements for the last two years. If you rented, they will want them to fill it out. Your last 3 months bank statements. Employment history for the last two years. I am sure there are others, they seemed to keep coming up with something new every other day, but I can't remember if there is anything else. Of course, you will have to fill out a loan app. You will have to pay for the first year's insurance before closing or have it included in closing costs. Closing costs typically vary depending on the amount of the house you are buying, your credit, where the house is located, etc., but our closing costs where close to $4000. Ours included the insurance though, and we had poor credit. So expect between 2000 and 5000. They usually say it could be up to 1% of your house cost though, so be prepared. It's good to be prepared to go to closing with 21% of your house's value to cover down payment and closing costs, but it is not always set in stone. There are many different type loans for everybody out there. Just do your homework and you will find what you need. We went with Wells Fargo Home Mortgage, they are one of few that will give mortgages to poor credit individuals who have to money to put down or for closing costs. I really don't suggest taking that route though, it's VERY expensive. Wells Fargo was good, but they will give you the run around. Look at many different mortgage companies before making your decision. First talk to you own bank, they are usually the best to go with. Good luck. Buying your first house is exciting, but it is a REALLY big pain.

Answer 5

Hopefully you sat down with a mortgage broker/lender and discussed how much you feel comfortable borrowing. Based on that number, you get yourself a real estate agent to show you a home for around that number.

If you live in Southern California, contact me and I will help you out. I, or one of my agents, will give you part of our commission to you so that you will have some money at close of escrow as well. I am also a mortgage broker and can help you get a loan or answer any questions you might have.

Regards

Answer 6

If you use a real estate agent:

First: speak to a lending company, whether it is a bank, credit union, or mortgage company. Speak to several to get an idea on rates. My realtor suggested using a mortgage company because that is what they do for business, and nothing else.

Second: choose a lender who you feel comfortable with, then sit down with them and get preapproved for a loan, based on your income and assets. Expect to be there for the better part of an hour, you have to sign your life away...including a Homeland Security sheet. Make sure you know what they want you to bring in...usually income history, and maybe bank account info, etc.

Third: choose a realtor (you kind of have to stick with them through the whole process unless there is a real conflict).

Fourth: find a house you like and is within your loan limits, and your realtor will make an offer on your behalf.

Fifth: once your offer is accepted (you may have to make offers several times before one is accepted depending on the housing market in your area), your realtor will set up an appointment with a title company to finish the deal. This is where the downpayment comes in. Bring it in the form of a certified bank check, or if you don't do that, you can have your bank wire the funds (that's what we did).

Part of this step involves an inspection of the property. The house must pass inspection for the lendor to sign off on it.

Also, you will need to arrange homeowners insurance before the lendor signs off on it.

Sixth: once your downpayment is received, the title company registers the sale at the county clerks office, and the property becomes yours. Our realtor had a guy meet us at the house where he rekeyed all of the locks for us.

Seventh: you move in finally!

Each state has their own laws...this is Utah. I know in NY, you actually need to have a lawyer. It depends on where you are.

Hopefully I got most of this straight!

Answer 7

Your real estate agent will walk you thru everything from ehlping you get a lawyer to recommending a mortgage company. They want the commission so they will handle everything for you.

Answer 8

Make sure you have recent bank statements, W-2's and any assets that can help you get your loan. Also, make sure you're credit is good and up to date. Your broker/realtor will ask you for these things and maybe more so be prepared. I'd ask if they have any incentives for first time buyers too.

Answer 9

Hook up with an experienced real estate agent who can assist you with these things.

Answer 10

Read this first and think it over.
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