With Realtor® Service in Frisco, Plano,
Allen, McKinney, Prosper, Carrollton, Coppell, Colleyville,
Southlake, Murphy, Sachse, Wylie, and all other North Dallas locations.
For First Time Homebuyers the process of
buying a house is
an exciting experience, but it can also be unnerving and
stressful. Familiarizing yourself with the process in advance can
help ease those buying jitters. As your
I will guide you through the entire buying
process from start to finish.
The downpayment can ranger from 3%
of the purchase price to as much as
you would like to put down, and depending on the
type of loan, normal closing cost will generally run
about 3% to 3.5% of the purchase price. This applies to a
typical conforming loan. For those who qualify,
some downpayment assistance programs will cover the
required downpayment and part of the closing cost.
FHA allows for a down payment to be as little as
3.5% of the purchase price with a credit score as
low as a 580, but keep in mind, most mortgage
still require a minimum 620-640 credit score before they will
lend on a home purchase and some
assistance programs require a minimum credit
score of 640 to 645.
The positive aspect of using a FHA loan is a small
downpayment and lower closing cost, if you role in
the up front MIP back into the loan: the negative catch
is the monthly mortgage insurance premium (MIP), which
will slightly increases your monthly payment. If you have
credit and can swing at least 5% for a downpayment, a conventional loan may be
the better choice over all. Closing cost and monthly mortgage payments are
usually less expensive. In some cases a 3%
conventional loan can be acquired. Have your mortgage lender do a comparison.
VA loans offer 0% downpayment loans and require some
closing cost to be paid by the seller. This is great
for the buyer but not as attractive to the seller. For those who prefer a more rural place to live,
USDA still offers a 0% downpayment loan but closing
cost will still apply. These loans are only
available if you are willing to make a purchase in
designated rural areas.
Add the down-payment to the closing cost and that is
your total. Some sellers will agree to pay part or
all of your closing cost if you present them with a
good offer but in todays market, that may not be a
good negotiating strategy. The amount due at closing
may sound high but consider this, it is now cheaper
to own a house then it is to rent, your yearly tax
deduction will pay the closing cost back to you in
short order, and you now own an asset that can help
secure your financial future....no more paying for
the landlords future.
Determine how much house you can afford.
As a quick rule of thumb, if you have good
financial stability, utilize normal financing with
an average down-payment, the typical purchase price
of a house can range around three times your yearly
gross income. This can vary quite a bit and the
final number will depend greatly on your Debt to Income
You will need to examine your income and current
debt to determine the amount you can spend every
month on the mortgage payment. If you're paying rent, and that's the maximum payment you can afford,
then your total monthly mortgage payment will need
to equal that amount. Use this as a benchmark to
determine the maximum amount you could comfortably
afford each month for the mortgage payment. Just
because a lender approves you for a $200,000 or
$300,000 loan, doesn't mean you want to borrow that
much. Make sure you have enough money left over for
monthly utilities, entertainment, travel, or other various activities
you have come to enjoy, and don't forget about home
To find out how much the lender will agree to lend for your real estate purchase
you will need to get pre-approved
for a loan. The lender will examine your financial
status including your credit, job history, your
income and assets, the down payment you have, as
well as your debts, liabilities, and other
Finding A Home
After formulating your budget and getting
pre-approved, you'll need to select the area
or neighborhoods you're interested in. Some buyers want to look for homes that
are close to their work or their choice of schools, a location with active
entertainment and dining, a newer build, or maybe a home with old neighborhood
charm? Other homebuyers just want to buy within a certain city. These preferences
are entirely up to you. As your Realtor I can help find the house you're looking
for but keep in mind, the more specific your criteria, the fewer choices you will
have. For instance, if you have children and want them to attend a particular
school, the selection of available homes will already be limited to your price
range, add on top of that your desire to buy only single story homes that have
a minimum of four bedrooms with large back yards and you may be looking at less
then a hand full of properties to choose from.
If you are a first time homebuyer and have no
idea which subdivisions have homes in your price
range, contact me with your general search criteria
and I will survey all available prospects for you.
As a real estate agent in Texas I have access to the
entire MLS system. Utilizing a list of
specifications created by you, the MLS can sift
through thousands of listings to come up with a very
specific group of possibilities. If you would like
to investigate current homes for sale yourself, my
site provides you with a variety of options to help you find real estate
listings. When you have determined the range of
possibilities, it's now time to view potential properties.
With your pre-approval letter in hand and a list of
your favorite properties, appointments will be set
and then it's time to take a look.
you're in the market to buy a house or just
considering your options contact me at 214-336-7088
for more information.
first home is going to be exciting, and I am going
to be with you every step of the way. One thing I
like to do with my buyers is prepare them for what
to expect. As an Accredited Buyer's Representative
(ABR), helping buyers is my business. Please let me
know if you have any questions. I look forward to
working with you and getting you into your first
First Time Homebuyers and FHA loans.
First time buyers
may want to consider using an FHA guarantied
loan for their first purchase.
Some advantages are: Lower Down Payment.....Your down payment can be as low as 3.5% of the purchase price.
Seller paid closing cost......Up to 3% of
the closing costs and fees can be paid by the
Easier credit qualifying.....Most lenders will allow a credit score as low as 620 to qualify.
Jay A Hendrick William Davis Realty
8856 Coleman Blvd
Frisco, Texas 75034
E-mail: email@example.com Website: www.RealEstateDal.com Member: NAR TAR CCAR
Designations: ABR SFR TAHS SRES CPRES NHBS