Loncar Realty's First Time Homebuyer Guide
Buying your first home is one of the biggest decisions of your life, and we’re here to make it as seamless as possible. At Loncar Realty, we believe that the best decisions made are the most informed ones, and that’s why we spend a lot of time upfront with our clients to help them get familiar with every step of the way. We have created a first time homebuyer guide to help you get started. If you have any questions on the below points, please reach out to LoncarRealty@gmail.com
1. Save for a Down Payment. There are a lot of loan programs that vary based on your needs and requirements. There is an FHA program that enables you to put 3.5% as a down payment. On a $400,000 property, that’s $14,000. Conventional loan programs require a 5% minimum, which on a $400,000 property is $20,000. When putting less than 20% down, you will pay something called PMI (Private Mortgage Insurance) monthly. A lender will help you review the figures in detail based on your exact use case. And remember – you will also have closing costs that are associated with the purchase of the home outside of just your down payment (lawyer fees, title fees, loan fees, etc).
2. Find a Trusted Agent. It’s important to work with an agent who has your best interest at heart, listens to your needs, and keeps you updated at every step of the way
3. Get Pre-Approved. A lender will review all of your financial documents to determine what is the maximum purchase price you can afford. Sometimes we think we can afford more/less based on our Google research, but given everyone’s debt/income ratios are different, I highly encourage buyers to take this as one of the first steps so that they are targeting their search to things that are within their reach.
4. Determine what you’re looking for. How many bedrooms and bathrooms do you want? What’s most important to you in a home – location, size, layout, color schemes, updates, taxes, school districts, etc. There are a lot of factors to think about when you’re looking for a home, and we will work to find a home that checks your every box! A house should feel like a home when you walk in.
5. Going Under Contract. The offer process is a negotiation that the buyer’s agent and seller’s agent help with. From the buyer’s side, we will prepare an offer with the terms and submit it to the seller’s agent for review. Once the contract is accepted, we’ll work together to drop off Earnest Money and go into Attorney Review. During the attorney review, we will hire an inspector to go through the home and tell us if there are any items we need fixed before closing. In parallel, we will work with your loan officer to provide them with necessary documents for them to review and apply for your loan.
6. Closing Time. Once your loan officer completes all his work and we receive the Clear to Close, meaning they reviewed everything and you are fully approved for your loan, we will schedule the closing! At the closing, you will sign all loan documents, title documents, and everything that officially calls you a homeowner! You’ll receive the keys to your new home and be able to move in immediately after closing! This is a really exciting and rewarding time – you have made one of the biggest purchases of your life where you’ll create long lasting memories. Time to enjoy your hard work! Welcome Home.
If you have any questions regarding any of the above steps, please let us know. There are unique situations that require additional steps or less steps if you are purchasing with cash, or a property “as-is.” Each transaction is unique and we’re here to walk you through every step of the way.
We’re excited for you! We would love to help be part of your process – please reach out to learn more or to schedule a consultation. Thank you in advance for your support and loyalty.