Buy a House

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Buy a House

FIRST TIME HOMEBUYERS

Doing something for the very first time can always be a tricky affair. And when it comes to buying a house, the situation can get even more nervy. It is simply because we are planning to purchase probably the first big asset of our lives. And secondly and most importantly, because we do not have the adequate knowledge about the mortgage process.

First Time homebuyers doesn’t mean you haven’t owned a home, previously.  Even if you have owned a home, you or your spouse may still qualify as a first-time home buyer. According to the U.S. Department of Housing and Urban Development, first-time home buyer status is not limited to people who have never owned a home before (although that criterion obviously applies). For lending purposes, a first-time home buyer included any buyer who fits one or more of the followings requirements:

  • First time home buyer must not have owned a primary residence at any time during the past 3 years.
  • For at least three years, the individual or the spouse (the one applying) must not have owned a primary residence.
  • The person who jointly owned a home with their spouse but now is a single parent.
  • According to the applicable regulations, the individual must not have owned a primary residence that was connected to a permanent foundation. Displaced homemakers whose only previous ownership was with a spouse.
  • The individual who owned a property that was neither in compliance with building code ordinances nor can be elevated to meet those standards and is less than the cost of constructing a new primary residence.

While the eligibility criteria allows for maximum people to apply for it, there are the following stipulations attached:

  • The high borrower income limit individuals are allowed to apply for the program.
  • The State of Florida allows for the program to be used anywhere within the state.
  • The excess funds will be utilized to pay for the first mortgage and therefore, no cash back is given at the closing.
  • The property include 1 unit, single family residence, townhouse and condos with a maximum of 95% loan to value (LTV).
  • Only the income of the applicant will be considered with no household income limitation.
  • The seller would only contribute 3% towards the closing costs of the buyer.
  • The properties can only be purchased with no construction to permanent loans and not for investment purposes.
  • The owner can only be the property’s occupant and it cannot be used by another person or entity.
  • The purchase price limit set for a property is determined by the county’s median income limits.
  • Lender Credit is not available.
  • Before the closing, home buyer education is required.

The following are the steps to attaining the mortgage for your home:

Step No.1 - The Credit Score and Report
The higher the credit score, the lower interest rate and the better loan option the individual would qualify for.

Step No. 2 – Your House, Your Affordability
It is very important for the applying individual to know their financial strength. Their income and their ability to pay is vital before going for a mortgage.

Step No.3 – Find the right lender and real estate agent
It is essential that maximum information is gathered from a number of lenders before choosing the right lender.  Ask questions! Buying a home is an audacious process so be sure to go with a lender that can assist you thoroughly and answers every question you may have.

Step No.4 - Affordable Home
The first step to finding the affordable home is to find the right realtor. Someone that can be trusted and is rated highly by others. It is a big asset and only a contract that one is certain about, must be entered in.

Step No.5 – Bargain on the Price
Almost every home in the market is priced higher than its actual value. Therefore, once the right home is selected, bargain on the price. Reduce the price by 5% and then quote. The owner may come up with a counter offer so make sure that a margin is there for further negotiations. But, the deal can be locked with earnest money payment.

Step No.6: The Best Mortgage programs
The individual must ask the loan originator or the loan office about the best mortgage as per their situation and circumstances.

Step No.7: Home Inspection a must
The individual buying the home must make sure that a home inspection is done before the deal is finalized. It would help the buyer in knowing the pros and cons of the property.

Step No.8 – Go In
All the steps are now covered and the home is ready to be moved into.