First Time Home Buyers - Don't Be Scared!
Buying a home can be scary, especially if you've never done it before!
Buying a home is a major commitment and for most people, the largest financial commitment you will make as an adult. With so many lending commercials, horror stories and misinformation out there--it's not a wonder that buying a home scares a lot of people! Below you'll find the facts to some common fears.
1. STARTING THE HOME LOAN PROCESS
Beginning the home loan process often sounds daunting, even if you've already done it so for first time home buyers, it's especially scary. The first step in starting the home loan process (aside from saving money) is choosing a mortgage lender that you can trust. They can walk you through the home loan process step by step, and explain exactly how everything works in a manner that makes sense to you. At Popish Mortgage Group, we like to start our First Time Buyers off with
this handy checklist. It gives an overview of the steps involved, and a general order to how the process usually goes.
2. GETTING A PRE-APPROVAL TO PURCHASE
In today's Denver real estate market, a pre-approval is necessary to ensure your offer will be a competitive offer on a potential home. However, as a First Time Homebuyer you should be sure that your lender issues you a pre-approval, not a pre-qualification letter. A pre-approval letter means an Underwriter has reviewed your paperwork and that lender promises to fund your loan versus a pre-qualification letter that does not prove the information provided by a borrower.
3. BUYING MORE HOME THAN YOU CAN AFFORD
A few years back you couldn't watch the news without hearing the latest foreclosure statistics, not so much in the current real estate market however, foreclosures still happen. Why is that? While details vary, homeowners can no longer afford their mortgage and the bank takes the house back. Working with a lender you trust is imperative. A good lender will show you a variety of options, and even illustrate exactly what your monthly bills will look like with homes at different purchase prices.
4. DOWN PAYMENT
"Down Payment" has the power to scare the socks off of some potential first time buyers. It is traditionally believed that youmust have 20% of the purchase price in your savings to use as a down payment toward your home purchase. This is not the case! There are so many Down Payment Assistance Programs specifically designed with first time home buyers in mind. Your lender should be able to tell you which ones you qualify for, and which down payment assistance program is best for your personal financial situation.
5. FINDING THE RIGHT HOME
In a competitive real estate market, the fear of not being able to find the "right home" is common. The key is work with an experienced Realtor who will be able to listen to your desires, but one who also has a creative vision. Perhaps you wanted to avoid a fixer upper, but an experienced Realtor can find a "fixer upper" with only surface level updates needed. You'll of course want to avoid properties with serious issues such as structural damage as a first time buyer but keep an open mind and work with a trusted Realtor whom you are confident has your very best interest in mind.
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