With Realtor® Service in Frisco, Plano, Allen, McKinney,
Prosper, Carrollton, Coppell, Colleyville, Southlake, Murphy, Sachse, Wylie, and
all other North Dallas locations.
First Time Homebuyers
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 and always remember, as your
I will walk with you and guide you through the entire buying
process from start to finish.
Downpayments can ranger from 3.5% to as much as you
would like to put down, and depending on the type of
loan, normal closing cost will generally set you
back 3.5% to 4.5% of the purchase price. This is
typical for conforming loans. Most downpayment
assistance programs will cover the required
downpaymet if you qualify.
FHA allows for a down payment to be as little as 3.5%
with a credit score as low as a 580, but keep in mind, many banks
still require a minimum 620 score before they will
lend on a home purchase. It's their choice!!
The positive aspects of using an FHA loan is a small
downpayment and lower closing cost, if you role in
the up front MIP: the negative catch is a large
monthly mortgage insurance payment (MIP), which in
turn increases your overall monthly payment. If you have decent
credit and can swing 5% for a downpayment, a conventional loan may be
the better choice. Closing cost and monthly mortgage payments are
usually less expensive. Have your mortgage lender do a comparison.
VA loans offer 0% downpayment and require some seller pay closing cost.
For those who prefer a more rural place to live
USDA still offers a 0% downpaymenrt loan but closing
cost still apply.
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.
income and current debt, determine the amount you would feel comfortable
spending every month on the mortgage payment, think of it as rent with taxes,
insurance, and MIP rolled in. Use this amount as a benchmark when determining
the maximum purchase price. 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 entertainment, travel, or other various activities
you have come to enjoy, and don't forget about the monthly utilities.
To find out how much the lender will agree to lend for your real estate purchase,
you will need to get pre-approved. The lender will examine your financial status
along with your credit score and job history to determine the size of the loan
and what interest rate you will be offered; great credit and good financials get
the best rates.
After formulating your budget, 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 yourself, a Google search can
provide you with a large selection of IDX sites to search from. Realtor.com is one
of the largest, open to the public, and a great place to start your search. This
site also provides you with a variety of options to help you find
Dallas real estate
listings. Keep in mind, although many website provider sites populate from our MLS
system, it can take considerable time to display a change in status when a house
goes under contract. These sites are great for looking at possibilities but always
have your real estate agent double check the availability through the MLS. In an
area where homes sell quickly, it would not be unusual to find half of your selections
to be already under contract and on the way to closing.
Now it's time to View 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 seller or in some cases, the lender.
Easier credit qualifying.....Most lenders will allow a credit score as low as 620 to qualify.