Buying your first home will likely be one of the biggest purchases you will make. When making such a financial commitment, it can be a big mistake to wait until you have found your “dream home” before you select an Agent to assist you. You know you will need an Agent to handle the transaction correctly, so does it make sense to trust an Agent to handle the contract but to bring that Agent in only towards the end of your journey? No, that doesn’t make sense. Wouldn’t you prefer to have an Agent with you every step of the way?. It’s crucial for you to find an Agent at the start of your home search. Spending as much time as possible with your Agent allows the Agent to learn about your wants and needs, and to get to know you as a person. If your Agent isn’t with you every step of the way guiding, working, consulting, searching, learning, teaching and coaching you through the start of the process, you will likely waste lots of your valuable time and may well miss out on many opportunities. If you work with an Agent as you start this process, the Agent can guide you and put you on the path to success. Choosing an Agent at the beginning of your search will remove much of the stress encountered during the home buying process. In addition, you will not have to flounder while having to figure the beginning stages out on your own.
Getting a prequalification letter from a lender may well be the most important steps in the entire first time home buyer process. At the very start of this home buying journey, buyers should consult with a lender to learn how much money a lender will loan them. Going online to look at homes or trying to identify your dream home without knowing the size of a loan you qualify for can lead to disappointment and frustration. The last thing you would want to happen is to find your dream home, make an offer and then not be able to qualify for the loan.
A huge benefit to getting a pre-qualification letter is that it gives a buyer a guide to what price point the buyer can afford. With this price point guide, you can now start to tailor your search to areas with homes within your budget. As you complete this search, you may find that the area you want to be in and the price point you can afford might not match up! In this case, some buyers will go back to the drawing board and will either wait until they can afford a slightly higher price point or adjust their expectations. In other cases, buyers realize they can actually afford slightly more of a home than expected
One of the biggest hurdles for most first time home buyers is trying to come up with funds for a down payment. Luckily, multiple financing options exist and there are programs to help first time home buyers get into their dream home. Here are a few options:
The 3% simple interest, deferred payment loan has a 30-year term and a maximum loan amount of $40,000. Homebuyers must occupy the property as their primary residence. There is a 1% minimum down payment requirement for this program and the total sales prices shall not exceed 85% of the Orange County median sales price for all homes, which as of April 2016 is $548,250 (85% of $645,000). All applicants are required to attend a homebuyer education workshop.
Before you choose one of these programs, I recommend going over each one with you lender regarding its pros and cons.
Open escrow & time lines start
Receive Escrow Instructions
Make your initial deposit
Schedule home Inspection
Your lender will schedule the appraisal
Decide what you want fixed or repaired
Come to agreement with seller regarding repairs
Lender will receive appraisal back
Lender will give the loan approval
Agree to remove all contingencies
Final walk through to verify repairs have been made
Sign closing disclosures and your sale will be recorded