Redwood House of Real Estate, LLC. is a real estate company that offers residential, land and commercial real estate services to individuals and businesses.
www.RedwoodHouseofRealEstate.com | www.NizaRodriguez.com
We Can Help You Get The Keys To Your New Dream Home!
(740) 224-6967 | (330) 333-6573
Serving Coshocton County, OH; Tuscarawas County, OH; Holmes County, OH; Guernsey County, OH; knox County, OH; Muskingum County, OH and surrounding areas.
Now that you’ve made the decision to purchase your first home, a hearty congratulations is in order! Becoming a homeowner, especially for the first time, can stir up some feelings of anxiety and excitement. With the knowledge that you gain through individual research and the help of your REALTOR®, you will soon begin to feel like a seasoned house hunter.
Tip # 1: Do Your Homework
Did you know that there are a number of incentives available to first-time home buyers? Everything from a 3-5 percent down payment and interest rates as low as 5.75 percent are just a few of the ways that lenders help to make the dream of home ownership into a reality for many. An FHA loan, for instance, is especially appealing to first-time home buyers. The best way to find out what’s available, in terms of down payment requirements and interest rates, is to do your homework by comparing offerings from various lenders.
Tip # 2: Save Money
Although many loans are geared toward offering lower down payments to first-time home buyers, it’s important to save as much money as possible so that you will have enough to provide an earnest money deposit (if applicable), pay for closing costs and still have the funds to furnish and decorate your new home.
Tip # 3: Get Your Credit Profile In Order
When you apply for a loan, the lender will access a copy of your credit report and will use the information to determine your creditworthiness and/or interest rate. This means that you will want to make sure that the information contained in your credit report is accurate and up-to-date. You can do this by requesting a copy of your file from each of the three major credit reporting agencies – Experian, Equifax and TransUnion.
In addition to past credit history, lenders will also look at your current debt ratio in order to determine whether or not you can afford the home. This means that you may want to consider paying down some of your existing credit card debt and avoid taking on any new debt before applying for a mortgage.
Tip # 4: Start Your Search
With the World Wide Web being what it is today, it’s no surprise that many potential home buyers start their search online. A Realtor’s Web site is designed to not only list real estate, but also to educate a buyer as they move through the process of searching for a new home. In addition, the internet offers a way for consumers to browse through color photos and virtual tours, both interior and exterior, along with information pertaining to the homes themselves. The convenience of being able to find a home that you like without having to wait is just one of the many benefits to shopping for a house online. When you are finally ready to meet with a REALTOR®, you will already have one or more prospects in mind.
Tip # 5: Have Patience
Perhaps you will find the perfect house this week, or maybe it will take a little longer. Some buyers find exactly what they are looking for right away, while others have to do a little more searching to find their dream home. As a first-time home buyer, it’s a good idea to begin the process with an understanding that good things really do come to those who wait. You may see a number of homes, take numerous photos and may even make an offer or two, but patience may very well be the key to finding your new home.
Tip # 6: Take Notes
If you see a lot of homes, it will be impossible to remember the features of each. For this reason, you should consider taking a notebook and writing down each unique or defining aspect that you like or dislike about a particular house. This information, along with any photos that you take, will help you greatly when it’s time to make a choice.
Tip # 7: Don’t Settle
A home is a big investment and it could, quite possibly, be the largest you will ever make. For this reason, along with the fact that you will be living in the home every day, make sure that you get what you want. There could be an instance where you need to make some type of compromise, but you may want to avoid choosing something just because it’s within your price range or you feel as though it’s your only option. New houses are placed on the market every day and, as a buyer, the next one listed may just be your dream home.
Inspections are designed to help you understand the overall condition of a property, potentially saving you considerable time with the purchase process and hundreds or thousands of dollars in repairs. Some of the inspections which may be required or recommended by your real estate professional are:
Underground Storage Tank (UST) Inspection - The most common methods for testing a UST, typically used to store oil for heating homes, are either the soil test or vacuum test. The soil test consists of random core samples taken around the location of the tank and submitting them for lab analysis. This will determine if any product has contaminated the soil at that particular area and to what extent. The vacuum test consists of having a technician seal off and place the tank under a vacuum. Readings are periodically taken to determine whether or not the tank is losing its vacuum. With this test immediate results are available for the buyers.
VA home loans are designed to assist those who have served in the military with the purchase of a home. There are several requirements to qualify for a VA loan, but for those who do qualify, loan terms are often better than either conventional or FHA loans.
Military Service Requirements
In order to apply for a home loan through the VA, you must meet certain requirements in terms of your military service. While the VA will review each application case by case, they do have a set of basic eligibility requirements that serve as a guide.
The applicant must meet one of the following: have served at least 90 consecutive active days during wartime or 181 active days during peacetime, have served six years in the National Guard or Reserves, or be the spouse of a service member who lost their life in the line of duty or because of an injury or disability related to service.
Veterans discharged dishonorably will not qualify for VA home loans.
Income And Employment Requirements
There is no minimum income required to obtain a VA home loan, although the VA does expect applicants to show steady income and reliable employment. The applicant must be able to make the monthly payments on the loan based on current income.
Additionally, the VA requires a certain threshold for residual income. This means that the applicant must be able to make mortgage payments with enough income left over each month to pay for other regular expenses of daily life outside of major bills. This ratio isn’t set in stone, but will be determined on a case-by-case basis.
Credit And Debt Requirements
VA loans are still financed by outside lenders who will have their own eligibility criteria. As a result, during the application process, credit reports will be requested and examined to determine credit history. There is no set credit score requirement with the VA, but private lenders may have a minimum in place.
The applicant’s debt-to-income ratio will also be a major deciding factor in eligibility for a loan. A history of repaying debts on time and avoiding over-use of credit can work in your favor.
The first step to obtaining a VA loan is to apply for a Certificate of Eligibility. While you can start the application process for a VA loan without it, you will be required to obtain it in order to complete the process. This document will ensure that you meet the basic criteria before you go further into the process to determine whether or not you will qualify for a loan based on other factors.
If you are a first time homebuyer, navigating all the new information about homeownership, the home buying process, and mortgages can seem overwhelming. If you are beginning the mortgage shopping process, but have no clue as to what information you’ll need and whether or not you’ll even qualify, here is some information that may make the process a little smoother.
Will I Qualify For A Mortgage?
There are essentially three things that lenders look at to determine whether or not you qualify for a mortgage.
When purchasing a property, all income of a homebuyer must be validated by a mortgage underwriter in order to receive a loan. Income verification can be done using several types of documents such as a W-2 statement, paycheck stubs, or income tax statements that show proof of income. These documents usually will have to span a period of two years or more to show you have a history of a steady income. Income proof can include such things as child support payments, disability payments, or income from the Social Security Administration. These additional monthly payments can increase your potential to qualify for a mortgage, as well as the amount you will qualify for, but like regular income, must be validated in order to count.
Another important factor in getting a mortgage will be your debt-to-income ratio. This involves looking at your total debt load and monthly payments, including car payments, credit card debt, and any student loan debt. If the ratio of debt exceeds 40 % of your income, you will likely have to pay off some debt before you will qualify for a loan. In this case you may want to seek out the advice of a financial advisor to help with this process.
The final consideration that lenders will take into account in determining whether you qualify for a mortgage is your credit history and score. They will not only be looking for a strong history of on-time payments for all your debts, but also that you have already established credit. You can arm yourself with this information by getting your free credit report from sources such as Equifax, so that you are able to check that it is accurate and up to date.
When getting a mortgage, being prepared with a little background research and all required documents will make the process simpler and less stressful. Armed with this information, you will be able to get the best possible deal with a lender who is right for you.
If you are ready to start your buying or selling process
give us a call at 614-365-1455 -
We´re happy to answer all your questions.
We can help you to find your dream home. Also can request a FREE Comparative market Analysis with no obligation. Serving Coshocton County, OH; Tuscarawas County, OH; Holmes County, OH; Guernsey County, OH; knox County, OH; Muskingum County, OH and surrounding areas.