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first time home buyer HELP!!!!?
I am 22 and for the past 2 years I have made over $65k and I am thinking about buying my first home. I have no idea where to start.
I have no idea if I am even able to finance a home, I have no real established credit.
There is too much information online and I dont even know where to start to get pre aproved there are so many options and I have no clue what is best.
- glennLv 75 years ago
You may gather inofrmation online in the begining but when push comes to shove- you will want a local competent experienced loan officer that does not work for one of the big mortgage companies- you want someone that will help you with any problem that comes up and someone that will look over your stuff and be able to tell you within 30 minutes if this will work.
You will also of course want to work with an experienced local and competent real estate agent. This will not cost you anything because they get paid out of the commission the seller has already agreed to pay.
This is stressful but exciting. Take time- do not feel pressured. Learn about the process (thru these people) before moving forward.
- Anonymous5 years ago
You'll want to save toward our purchase - at least 20% of the cost of the home, as a down payment PLUS you'll want 6 month's wages set aside for incidental costs / emergencies. To save 20K (toward 100K home), set aside $100/week for the next 2 years. You also can't afford to buy a house that is more than 3 year's income (2 years income is more suitable for true affordability). If you also have other outstanding debts, you'll want to pay those off (do not close the account).
In the US, buying a home has been removed as an tax incentive, since itemizing deductions is almost impossible, due to the high standard deduction, which has almost made it impossible to itemize.
Look over your personal finances, see how it may fit, and how much you can stretch your budget to accommodate. Then subtract 30% and that's what you tell the realtor is your high end budget. They will almost always push the limits (like a car dealer) and look for creative ways to get the home sold. Don't buy from the listing agent. Find your own to work with you, on your behalf. The listing agent is working for the seller, not you, the buyer.
Do your homework, know what to look for as some slight blemishes may lead to expensive repairs. Don't worry about decor, wall covering, floor covering - these things can easily change for a small amount of money. Bigger things like floor tile, or wall tile, bath, kitchen or electrical (no spare circuits or only a few circuits) may cost much more to change.
If you have a yard, someone will need to cut the grass, and trim along a fence, to keep it looking great. Roof lasts about 20 years, water heaters, air conditioners and furnaces about 10 each. Know how old these things are, and how likely they will be to break down or need repair/replace. Check out heat/cooling is implemented, check out how dryer is connected, or stove is hooked up. All electric, especially baseboard heat can be costly to operate. Fuel oil can be dirty, and smelly outside and inside the house, and needs special care.
Check out insulation, and type of windows, seals on doors, etc. These things will be important when comparing one home to another, and costs for heating/cooling the home.
There is much to learn. Speak with your parents, or others that have bought a home, learn from their past experiences. Shop around for a realtor, know who you're working with. If you don't feel comfortable with what they are telling you, and not listening to your preferences, and price range, find someone else to work with.
- BobLv 75 years ago
First step, establish an emergency fund that contain at least 6 months of living expenses. The worst thing that could happen to you is to buy the home, and then lose if because you can't make the payment if you lost your job. The emergency fund gives you time to find another. job. Establish credit and get your credit score above 700. This will help get a better interest rate when you get your mortgage. Save for down payment.. It is usually best to put 20% down.
- JudyLv 75 years ago
You will need established credit, and money saved for a down payment and closing costs. Call or visit the bank where you have an account and tell them you want to be prequalified for a mortgage and they'll set you up to talk to someone at their bank about it and they'll give you lots of good info. When you actually buy, this doesn't commit you for getting a mortgage thru that bank if someone else has better terms, but will be a good start.,
- Gary BLv 75 years ago
Start by locating a local REALTOR. The are trained and licensed to answer ALL of your questions. They can arrange to get you PRE-QUALIFIED for a loan,. With that you will know HOW MUCH you can spend (without going broke), can estimate your payments (including taxes and insurance), and actually start with 4-5 houses for you to LOOK AT to see if that is what you want, or if you want to go in a completely different direction.
ALSO, go to your own Bank Branch and ask if they offer Home Mortgages. They can set with you and figure how much you can afford, and can get you pre-1ualified so that yo KNOW how much you have available to spend if you find something you want.
Getting PRE-QUALIFED is very important. It tells you how much you can spend. No use looking at $1.2 Mil houses when all you can afford is $250K
- 4 years ago
Not sure the status of your home ownership but you should start with your credit. Make sure you goit good credit and no bad consumer debt or else banks will have issues lending you money.
Check out Canadian website. The sites name sounds funny but has very good info though.:
- 5 years ago
You seem to be a little scared. So maybe stop surf the Internet, gather all information that you have and go to the real estate agent. I think it would be a right decision to you. No offense. There many issues that you can’t predict, as a first time rent.
- MaxiLv 75 years ago
Go and speak to the bank your salary goes into and where you save for advice............. they will explain the basics and also what they can offer you in the way of a mortgage... you then have the basic information and can use that as a foundation to seek a better offer and/or look at property knowing what you can afford to borrow
- babyboomer1001Lv 75 years ago
Consult with three different lenders and choose the one willing to give you best rate. With prior approval, go and look for a home in the areas where you have narrowed down your choice to live.Source(s): Certified Paralegal, with 25+ years' experience & with Real Estate law experience.
- Beverly SLv 75 years ago
Your first step is to contact a mortgage loan officer. They can pre-approve you & they will walk you through the entire process. Good luck!Source(s): Mortgage lender 30 years.