Buying a home in central Florida is exciting, but it can also seem overwhelming for first time home buyers. Understanding the process that is involved will make it easier. There are many steps that have to be completed in order to purchase a home. Understanding what is involved can reduce stress and actually make the process one you enjoy.
Here are some ways to make easy home buying possible!
Evaluate Your Budget
First time home buyers need to carefully look at their budget. Are you able to keep up with your monthly payments right now? Are you putting money into savings on a regular basis? Your mortgage payment is likely going to be more than your current rent. Plus, you need to have some money in place for emergencies.If your water heater goes out or the refrigerator, you need money that you can use to repair or replace them. Should you file an insurance claim for your roof, you will have a deductible that applies. Owning your home is a great option, but keep in mind you are responsible for everything it needs.If you have a high amount of outstanding debt, work on paying it off. Reduce your balances on credit cards. Try to pay them off if you can. Don’t apply for any new credit either when you are getting ready to buy a home. Incase you haven’t created a budget, here’s how to create a budget.
Review Your Credit Reports
What does your credit report say about you? It will have information about your creditors and how much you owe. It will have information about when accounts were opened and their current standings. Your credit score will also be provided. Take the time to go through all of the information on your credit report from each of the 3 reporting agencies. Don’t assume that if one is correct that they all will be.It can take time to mistakes corrected. You will need to submit a form along with any documentation you have to verify your claim. If you are buying a home with a partner, make sure they also go over their credit reports. The person with the better overall credit should be the main applicant on the home loan. The second person can be the co-applicant.
Finding an Excellent Lender
Take your time finding a lender that you can work well with. You should feel comfortable with them and you should be able to communicate with them. Ask your friends and family who they used and see if you get some solid recommendations. Schedule some appointments to talk and determine who you will be working with.They should be knowledgeable with programs offered to first time home buyers. Such programs can assist you with getting into a home for a low down payment. They can also help with reducing the closing costs. Some of these loans allow the closing costs to be added into the home loan.
Pre-Approval
Work with the lender to get pre-approval for a mortgage loan. This process involves an application and plenty of documentation. The idea is for the lender to verify that they can approve you for a home loan. Second, it helps you to identify what the maximum loan amount is that you qualify for. You don’t want to be looking at homes that are outside of your price range.
What Do You Want in a Home?
Once you are pre-approved and you know the amount you can borrow, think about what you really want in a home. Perhaps you would love a place to call your own in Central Florida that has a swimming pool. Perhaps it is very important to you that you have at least 2 bathrooms. Some homeowners want a one level home and others would like to have an upstairs and a downstairs.Do you plan to stay in the home for a long period of time? If so, will you have additions to your home? Perhaps you plan to have a baby in the near future. You need to make sure the home will have enough room for everyone.
Find a Real Estate Agent
First time home buyers are strongly encouraged to find a real estate agent. They can help you to find the home you are looking for. They can schedule a time for you to see those homes. They can also help you with all of the paperwork. You don’t pay them anything, they will earn a commission when they have sold a home.First time home buyers need to make sure they really talk with their real estate agent about what they want. Show them photos and give them examples of what you are looking for in a home. Perhaps you want to live in particular areas of Central Florida and they should keep an eye out for homes in given neighborhoods. For example, you may wish to live close to schools or to a park.
Make an Offer
Once you have found the perfect home to fit your needs, it is in the right location, and the price is acceptable, you can make an offer. Your real estate agent can help you with submitting that offer. It doesn’t hurt to offer less than what they are asking. Worst case scenario is that they decline that offer. They may come back with a counteroffer between what you offered and the listed price.Sometimes, a seller must get what they are asking in order to get out from under their obligation for the home. If your offer isn’t accepted, you can make another offer or look at another home. If your offer is accepted, an appraisal and an inspection of the home will be scheduled. This verifies the home is in good condition and worth the loan amount.If there are items that don’t pass the inspection, they will have to be corrected before you can proceed. Typically, the seller will take care of such issues. For example, they may have to add insulation in the attic or safety switch outlets. Then the inspection can be done again. Once these pieces are done, the date for the closing will be scheduled. That is the date you will complete your loan and have ownership of your first home!
If you follow these steps for easy home buying, you will find the home that is a perfect match! Central Florida does offer some lovely homes in all price ranges, so make sure you get what you want and what you can afford. Buying a home doesn’t have to be overwhelming or stressful!