Buying a home may be a great option and a good long-term investment, but only if you’re ready for the financial commitment and responsibility of home ownership. Buying a house is the largest financial investment you will probably make, so you want to make sure you’ve done your homework and are prepared to take that next step.
Buying overview- Know when you are ready, one step at a time makes it manageable.
Buying process- now that you are looking to buy, let’s see what is needed
Get started- do your homework
What can I afford?
Where do I want to live?
What is my need/want list?
What is needed to get started?
How much for down payment?
How does my credit score look?
Get prequalified for a mortgage- speak with an LO to see if you can qualify
What type of loan?
What is a monthly payment including escrow?
What is my down payment?
What forms are needed?
Confirm my budget
Find a lender
Collect your preapproval
FIND THE HOME OF YOUR DREAMS!
Myths vs Fact
Lenders require 20% down payment Down payment can be as low as 3% down
Credit must be PERFECT Your score of 640+ is all that is needed
Max Debt to income of 40% Debt to income can be as high as 50%
Down payment vs Closing Cost
The down payment is the initial amount that you'll pay for a property. It's typically a percentage of the home's purchase price. While it's a myth that buyers need a 20% down payment to buy a home, most mortgages require some upfront investment. That could be as little as 3% of the purchase price.
Closing costs refer to a variety of fees and payments that are associated with processing and finalizing your home loan. Fees include things like Title, processing, an appraisal, mortgage insurance, property taxes, and homeowner's insurance.
Both the down payment and closing costs are due at your home loan closing and can be some of the biggest hurdles homebuyers face. Fortunately, there's help.
Homebuyer course that is FREE
Check out our NO-FEE, online homebuyer education program www.fanniemae.com/education or http://creditsmart.Freddiemac.com/paths/homebuyer- u . This FREE first time homeowner educational course provides convenient, easy-to-understand, no-cost tutorials that break down the homebuying process.
This course has seven course modules that guide you through the steps of homeownership. Details below
7 Modules include the following
***Free appraisal fee (up to $600) credited at closing as well as your UW fee waived if you complete this course. Show the certificate to Align lending and this will be applied.
NMLS - 2041154
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