So you are looking to buy a new home– HOW EXCITING! We are here to help you throughout the process whether it’s your first time buying or not. Take a look at our resources here to help you prepare for the home buying process. If any of your questions aren’t answered, reach out to us at hello@gardenstatehomeloans. We are looking forward to helping you with your home purchase!
YES! Getting pre-approved can help you understand exactly how much you can afford. There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. It also presents you as a more serious buyer to sellers.
Buying a home can be a very solid investment. This being said, renting can also be a better option for some, depending on the circumstances. The current interest rates are incredible. Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent.
Loans backed by the Federal Housing Administration are available to everyone, not just first-time home buyers. The 3.5 percent down payment program is available to all buyers, as well. However, there are some FHA programs designed specifically for first-time buyers.
Under FHA guidelines, you qualify as a first-time home buyer if you have never owned a primary residence or if it has been three years since the last time you owned a primary residence. However, there are exceptions to the first-time buyer rule, such as if you divorce or if you owned a home that wasn’t attached to a foundation.
When buying a home, it’s strongly recommended you have a Realtor. There are many reasons why you should have a Realtor represent your best interests when buying a home including gaining access to their technology, open houses, coming soon listings, etc. Keep in mind, all Realtors are not the same! We have an awesome Realtor network and would be happy to connect you to someone!
A down payment is only part of the costs associated with buying a home. You need to also worry about closing costs. These two together are called Cash to Close.
A down payment is usually between 3-20% of the purchase price. Closing costs average 2-5% of your purchase price. So if you are buying a home for $300,000 and putting 3% down and have 3% closing costs, you will need to bring $18,000 to closing.
When you own a home, the ideal percentage of your gross monthly income that should go toward your mortgage is 28 percent. That means if you make $1,000 per month, no more than $280 should go toward your monthly mortgage payment and related expenses, such as taxes and homeowners insurance. (Taxes and homeowners insurance are often, but not always, rolled right into your monthly mortgage payment.)
There are no guarantees, however, in most cases the seller pays the Realtor fees.