First Time Home Buyers Guide
What You Should Know Before Buying A Home
Buying a home is exciting!! If this is your first adventure with the home buying process, there are a few things needed to be done in order to prepare for such an event. Often times people don’t understand how to properly complie their important documents for the lender or other aspects of the home buying process. That’s where I come in!! Here are a few tips to help get you started:
Stop Spending – When you become serious about buying a new home, it is important that you do not open any new credit cards or obtain new debt. One thing lenders look at are ratios that include how much home you qualify for and how much money you can spend on your monthly payment versus your income and other debts.
Alternative Credit – One problem many home buyers I’ve encountered face is the idea that they either do not have the proper funds or the proper credit to purchase a new home. While for some this is certainly true, one thing to remember is that if you make simply a monthly payment to anyone, in many cases that can be used as ‘Alternative Credit’. This can include car loans, cell phone bills, electricity bills, and even car insurance. Your best bet is to ask your lender what you will need to get the ball rolling.
Gifts and Cash Contributions – In some cases, your lender will agree to you using a gift from a friend or family member, but the catch is it usually must be deposited into the bank and accompanied by a letter from the source. Also, a home seller can sometimes contribute to your closing costs, however that will be based on the type of loan you received.
Shop with a REALTOR – Most homes listed For Sale By Owner tend to be more costly than a property listed by a real estate agent. A Realtor can run comparables on other homes in the area so that a seller won’t overprice a property. They also tend to not fully disclose any/all possible damage to the property. When listed with an agent, the seller signs a disclosure form and it is shared with the buyer who puts in an offer.
FREE Money/Down-Payment Assistance – Did you know that there is Down-Payment Assistance available simply to encourage new home ownership? Rules and certain criteria need to be followed, but it does exist! Visit the Volusia County Website or Mid-Florida Housing Partnership site for more information.
With me by your side, I can help you find a home in your price range! I love working with first time home buyers and service the Greater Daytona Beach area. If you have a question on how to get started please contact me! I would love to help!!