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First Time Home Buyer

    - For the first time home buyer… checking out potential places can be a daunting task...an enormous maze... Since there are many factors... emotional...financial...legal involve.
    Whether it is a new home or a pre-owned…

    first time buyers

    we can help take the mystery out of purchasing your new home.

    -From finding out how much you will qualify for on your loan... to making your first mortgage payment... we will help walk you though the process. We know the process can get quite stressful... for the first time home buyer...
    There may be pitfalls along the way...but if you are aware of them... ahead of time then they can be addressed if they should arise... and we will guide you through the home buying process so you enjoy the beautiful new home you have chosen.

    What To do First:

    We will get you pre-qualified and pre-approved from a Mortgage Lender. At that time you will determine if the type of loan you will be applying for is VA, FHA or Conventional.
    The reason we do this is to let us know how much house you can afford. It can also significantly strengthen an offer when we find you a home.

    It is important to remember ...as a first time home buyer the amount of mortgage you will qualify for is the maximum. It is the amount that the lender feels you can afford, but is not necessarily the amount you want to pay. It sometimes is advantageous to be conservative here.

    You will want to make out a Wish List for First Time Home Buyer!

    When we’re ready to make an offer on a property... a pre-qualification letter from the lender is best to accompany it. Therefore, it’s important to start this process prior to our searching for your home. Find out more about the process.

    I can put you in the hands of a recommended local loan officer with access to many programs... who can counsel and guide you... as to the most advantageous and appropriate one for your needs, as a first time home buyer.

    The terms of the contract provide for a Conditional Loan Approval from the lender based on a loan application* and Credit Report within a specified number of days with Seller’s Acceptance of the contract. This means loan application would need to be made immediately after the offer is accepted.

    The loan officer will give you a Good Faith Estimate of the closing costs involved with the financing... as well as an estimate of monthly payment.

    The one-time closing costs are the origination fee... usually one point (or 1% of the loan amount) and any other points... sometimes called discount points (the more points, the lower the interest rate)... The appraisal fee, credit report, and other lender fees... such as document preparation, underwriting fee... are further one-time closing costs.

    Now we have found just the right home... or close to it ... sometimes compromises have to be made... and are ready to make the offer. I will do a comparable market analysis(CMA) of that subdivision to see if this home is priced fairly... and how it relates to others that have sold in the subdivision and area. This CMA tells us the price range of sold properties in the area... what the average time on the market has been... and what the average sales price per square foot of the recent solds are.

    In some cases there may not be enough that have sold... I find out how long the property has been on the market... or if there have been any price changes during the listing period... if there have been any other offers on the property... and what the motivation of the seller is... Or any other information that may be of benefit to you.

    After analyzing all the information you will determine if you would like to submit an offer on the property. I present the offer to the seller’s agent... who in turn presents it to the seller. There could be multiple offers... there may be counter offers along with your offer... Time is of the essence... A fair offer usually generates a fair response.

    When we have an accepted offer... both parties have signed and the executed date is filled in by the broker for final acceptance... Then we have a contract between the parties. A check would be made out for the earnest money and held in escrow.

    See Loan Application Notes

    An escrow is an arrangement in which a neutral third party, in Texas a Title Company, holds the funds and legal documents for the buyer, the seller and the lender and distributes the funds according to the buyer and seller’s instructions as per the purchase contract.

    If the contract calls for an option period for which the buyer has the unrestricted right to terminate the contract then the option fee check would also need to be made out at this time and given to the seller. We have 10 or less days in which to do a Home Inspection if one was requested in the contract. We both attend because you will learn much about the mechanisms of the home. Any repairs will be requested in writing immediately.

    Loan application is made within 15 days unless you would be paying cash and we would proceed forward with setting up for closing. Your loan will go to underwriting and the lender may ask for additional information.

    The Title Company will provide: