How To Get Started On Your Real Estate Purchase

    One of the most common American Dream is homeownership but most people don't know how to get started. First and foremost you have to prepare yourself for the process, mentally and financially. While the notion of homeownership is a very delightful one, the process is not always easy peasy. A lot of things can go wrong and sometimes it can be a quite stressful transaction. Don't get me wrong, I've seen some very smooth transactions too, but the smoothest ones were usually from people who came well prepared. 

    First things first, unless you are buying a home in cash you will need to apply for a loan. There are many different types of loans out there in the Mortgage market and so many different lenders to choose from so you may want to do some research on what loan type is best for you and shop around for the best interest rate. If you're not sure where to find a lender, your Real Estate agent (if you have one) may be able to guide you in the right direction. This reminds me, a Real Estate transaction has many players and they all have to work together to get the transaction done and if they've worked together in the past it helps since they know how each other works and what to expect.

    To qualify for a loan, you will need good credit and at least the down payment available. Depending on the loan type you can expect the average FHA and Conventional loans to require between 3-5% of the purchase price. Some lenders can help qualifying Buyers find programs that can help with downpayment assistance for first-time homebuyers who intend to occupy the home, so don't get discouraged if you have the credit but not the down payment; ask your lender if they have these programs available where you live.  Also, keep in mind that there are other costs associated with purchasing a home. Lenders typically charge a fee but that is normally rolled into the loan. Another cost that you can anticipate are the closing costs, these costs usually include attorney's fees, title search fees, and other non-lender fees associated with the transfer of ownership.  

    Once you've been pre-approved on a loan you can start searching for houses. The pre-approval will let you know how much you're approved for so when you're searching for homes you can search with confidence that the homes you're looking at are actually within your budget. Having a Realtor helps in this part of the process for several reasons, (1) they will have access to what's available in real-time, (2) they will have access to most of the homes or be able to gain access to them, and (3) they know the market and can better assist when negotiating a contract. 

    Happy House Hunting!!