So far in life I have strictly been a renter. I'm considering buying a home and I was just wondering, where do I start? Do I see about a mortgage first, or find a home that I want to buy first?
Also, does anyone know a way to estimate what price range of houses you should look at based on your income? Together we make about 70K a year...
Thanks in advance for the help!!!!
2007-03-16 13:09:27 · 7 answers · asked by sapphirafire 3 in Business & Finance ➔ Renting & Real Estate
One of the first things to do is to figure out how much you can afford based on your income. There are quite a few web sites that can provide a ballpark estimate. For example, go to ELoan's webiste, which will tell you if you qualify and give you estimates of monthly payments for different loan types/interest rates based on the loan amount.
Based on the results, which will give you a rough price range, you can then start to look at available homes within this range. You can go to mlslistings.com to look at homes for sale, or look into getting a real estate agent who can help you in your search by recommending homes based on your criteria and actually show you some homes in person.
If you are really serious about making an offer, you can start the process with a mortgage broker or bank to get pre-approved for a loan, which simply says you're qualifed to obtain a specified loan amount. This will help in the sales process, because it shows the seller that you've done your homework and have the standing of a bank behind your offer.
Getting pre-approval may require you to pay for a credit check, which is ~$30 so it is important to only start the process if you're truly serious.
My advice if you're serious is to ensure that you have enough money left over after puchasing a home to cover 3 months worth of payments. Also, shop around for rates from different brokers/banks, but only get pre-appoved by ONE institution to avoid multiple credit checks. And when having to make estimates, think worst case scenario, so that you don't end up paying more than you expected. Finally, watch out and ask upfront about closing costs (i.e. money out of your pocket you have to pay when closing the deal).
Good luck in your search!
2007-03-16 13:24:56 · answer #1 · answered by MKai 2 · 1⤊ 0⤋
I would start with finding a good mortgage and getting pre approved that way you have an idea where you are financially-how much of a house you can get etc. in other words the pre approval process will basically tell you what price range to look in.
It is a buyer's market now meaning there are more homes for sale than buyers for them. This puts you in the driver's seat.
Be wary of the types of loans that caused some of the meltdown- Interest only, ARM"s etc. and stick to the more traditional 15 and 30 year loans. Even a new 50 year loan is a little questionable.
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2007-03-16 21:08:48 · answer #2 · answered by annalisa.fontana 2 · 0⤊ 0⤋
Well it is good to go get pre-approved first in my opinion. Go to your bank and ask for a pre-approval. They'll do a credit check, take your information and give you a certificate that says how much they would be willing to loan you. Then you can find a realtor you trust and start your search. Ask your friends who they used and whether or not they were pleased with them. You'll have to sign an agreement to make sure they get paid their portion of any house you buy. Or you can go with a home that is for sale by owner but frankly since this is your first house a realtor can really teach you a lot and is probably worth the money.
After you find a house you like and make an offer you can at that point do a little shopping for your loan to make sure you get a real good deal. You don't have to take out your loan with the people who pre-approved you.
2007-03-16 20:18:10 · answer #3 · answered by psycho-cook 4 · 0⤊ 0⤋
Check with a credit union, first to see how much you can borrow, and what sort of fees you will incur. They will run your credit, and give you an idea of what your fico is...you want 720 or higher to get the best rates.
Drive around the neighborhoods that you like, and see what houses cost....Dont be afraid to purchase a for sale by owner house, you will save a lot on realtor commissions....
Get the home buying for dummies book from the bookstore
2007-03-16 20:14:35 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Go to your bank and find out how much you can get as a mortgage. Don't look at ANYthing that's out of your affordability range.
2007-03-16 20:13:32 · answer #5 · answered by mz112ungu 4 · 0⤊ 0⤋
first question..are you married..if not one of you can get a first time buyers mortgage....but you should find a good mortgage broker first..i have a great one if you need help...and they will help you along in figuring out how much you can spend for a house..
2007-03-16 20:14:51 · answer #6 · answered by hollie 5 · 0⤊ 0⤋
Go to your bank and get a pre-approved mortgage. THEY will tell you how much you can afford to spend based on your income.
It makes it SO much easier when househunting to know your absolute upper limit.
2007-03-16 20:14:25 · answer #7 · answered by Anonymous · 0⤊ 0⤋