The Path To An Enjoyable “ First Time ” Home Buyers Experience ! Part I
by Al Baughman , AIM , LUTCF , Baughman & Associates
This two part article is one which provides suggestions for an enjoyable “ first time home buyers experience ”! The “ back stories ” are shared by our clients , with whom we have worked from “ contract to closing ”. We would like to thank them for sharing their “ real life scenarios ” so first time buyers will have a less stressful experience !
Why is “ Buy Local ” important in a real estate transaction ? As a locally owned family business , our focus and loyalty is foremost to our community . When “ buying local ”, one ’ s taxes support community infrastructure , schools , hospitals and the economy as a whole . It allows businesses to grow , hiring even more employees . In turn , this growth allows the community to provide much needed social services . It provides for youth recreational activities and opportunities for churches and houses of worship . Churches play a vital role in providing day care , senior activities and assistance to the less fortunate .
So you ’ ve decided it ’ s time to purchase a home … but why ? Plan on staying in the area for awhile ? There is no better time than now to buy ! One of the top reasons for buying vs renting is to build equity for yourself rather than the landlord . Buying allows you to settle down in your community of choice which provides the amenities you are seeking .
First things first ... how much house can I qualify for ? To qualify for the most favorable interest rate and terms , review your finances to assure all is in order ! Obtain a copy of your credit report and gather the last several years of your tax returns and expenses . Review each obligation for timeliness of payments . Do they demonstrate you are a responsible money manager ? What is your debt ratio ? Be prepared to explain any variances in payment history .
Given your budget , what type of home do you wish to buy ? Single family , condo , townhouse , mobile home or manufactured housing ? This decision will need to be made before visiting lenders , as not all lenders finance all construction types . There are a greater number of options available for single family , condo and townhouses . You ’ ll find the number of lenders
specializing in mobile home or manufactured housing financing to be much smaller . Seek out specialty lenders who can assist with the purchase and lot preparation of the manufactured unit .
Step three , visit a local lender for a review of your finances . Notice I emphasize “ local lender ”. Local lenders can best help evaluate your situation , determine the size of the loan available and provide a “ letter of pre-qualification .” Local lenders may also have access to specialty programs not readily available to all borrowers . Skip the frenzy of Internet shopping . Hands down , our clients tell us their experiences with local lenders have been much less stressful than those originating thru the Internet .
Want to avoid some of the stress associated with buying your “ first home ”, stay tuned for next month ’ s issue !
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