First Time Home Buyer Guide
First-time home buyers have it tough. The supply of homes for sale is tight, and lenders are tightfisted. For many, student debt is getting in the way of saving for a down payment, but it can still be a great time to get your foot in the door. The good news is that interest rates remain near all time lows.
We suggest that your first, and #1 step, is to make your finances sparkle.
Here are our guidelines for you to follow:
12 months in advance:
Make sure the time is right. Use one of the on-line "rent or buy calculators" to see if you'd really come out ahead, based on loan rates, taxes, and where rents and prices are headed in your area. Nationwide it's 38% cheaper buying vs. renting.
Clean up your credit. Devote this year to saving money and paying down debt. You'll need at least 3.5% down for an FHA loan, or 10% to 20% for a conventional mortgage. Lenders also like to see job stability, so settle in for now.
Learn what you like. When a home catches your eye -- a listing or a photo -- start a file or pin it to a board on Pinterest. Take the time to learn what features are important to you. We'll gladly set and up a search to automatically send you listings that match your preferences.
Six months out:
Look for a lender. To boost your credit score, consult with a knowledgeable lender who can guide you. Fix any mistakes. Pay bills on time, chip away at credit card balances, avoid new debt, and don't apply for new credit.
Figure out what you can buy. Discuss with your lender to estimate how much house you can afford based on your income, savings, and debts. That'll help you research homes and drill down on costs.
Forecast future bills. Now, with an idea of how much house you can buy, you can do a more detailed budget. Scan listings for property taxes on the homes you like. Get a homeowners insurance quote. Call local utility companies for the typical bills. And tack on 1% of the home's value for yearly maintenance.
Three months out:
Pick your loan. Fixed mortgage rates, now hovering around 3.74% (2017). If you are confident this is a starter home, you can save with a 7/1 adjustable-rate loan, now 3.5%. The risk: You end up staying longer than seven years and rates rise sharply. Most buyers aren't taking the chance of rising rates and opt for fixed-rate loans.
Prove you're a serious shopper. Based on your income and credit, a bank will provide you a mortgage pre-approval. It's the No. 1 thing you want in your back pocket when you go shopping for a home. In a hot market, you might consider paying a few hundred dollars to go through underwriting upfront.
As your Realtor, we've worked in the neighborhoods where you hope to live. In a tight market like we're in today, we have strategies for unearthing listings, handling potential bidding wars, and getting you to closing!
Call Us! We want to help you BUY your Home! (817)480-2744 or (817)480-2735
We suggest that your first, and #1 step, is to make your finances sparkle.
Here are our guidelines for you to follow:
12 months in advance:
Make sure the time is right. Use one of the on-line "rent or buy calculators" to see if you'd really come out ahead, based on loan rates, taxes, and where rents and prices are headed in your area. Nationwide it's 38% cheaper buying vs. renting.
Clean up your credit. Devote this year to saving money and paying down debt. You'll need at least 3.5% down for an FHA loan, or 10% to 20% for a conventional mortgage. Lenders also like to see job stability, so settle in for now.
Learn what you like. When a home catches your eye -- a listing or a photo -- start a file or pin it to a board on Pinterest. Take the time to learn what features are important to you. We'll gladly set and up a search to automatically send you listings that match your preferences.
Six months out:
Look for a lender. To boost your credit score, consult with a knowledgeable lender who can guide you. Fix any mistakes. Pay bills on time, chip away at credit card balances, avoid new debt, and don't apply for new credit.
Figure out what you can buy. Discuss with your lender to estimate how much house you can afford based on your income, savings, and debts. That'll help you research homes and drill down on costs.
Forecast future bills. Now, with an idea of how much house you can buy, you can do a more detailed budget. Scan listings for property taxes on the homes you like. Get a homeowners insurance quote. Call local utility companies for the typical bills. And tack on 1% of the home's value for yearly maintenance.
Three months out:
Pick your loan. Fixed mortgage rates, now hovering around 3.74% (2017). If you are confident this is a starter home, you can save with a 7/1 adjustable-rate loan, now 3.5%. The risk: You end up staying longer than seven years and rates rise sharply. Most buyers aren't taking the chance of rising rates and opt for fixed-rate loans.
Prove you're a serious shopper. Based on your income and credit, a bank will provide you a mortgage pre-approval. It's the No. 1 thing you want in your back pocket when you go shopping for a home. In a hot market, you might consider paying a few hundred dollars to go through underwriting upfront.
As your Realtor, we've worked in the neighborhoods where you hope to live. In a tight market like we're in today, we have strategies for unearthing listings, handling potential bidding wars, and getting you to closing!
Call Us! We want to help you BUY your Home! (817)480-2744 or (817)480-2735
The Linda Snelling Team, RealtorsUnited Real Estate of Dallas
5430 LBJ Freeway, Ste 280 Dallas Texas 75240 Linda: (817)480-2744 Jim: (817)480-2735 Linda@lindasnelling.com Jim@hotmail.com 
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