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Homebuyer's Guide Buying a home is one of the most important personal and financial decisions you'll ever make. That's why I want you to have this step-by-step guide to help you find and buy your first home. I'm also here to answer your questions along the way. I want your first real estate experience to be both hassle-free and rewarding. The following Guide explains the real estate process in plain English. What you're about to read is an overview of the procedures normally followed in a typical home purchase. Read on and see how finding and owning your dream home can be easier than you think with my help. Preparing to Find and Buy a Home Knowledge Is Power ... Accurate Information Is Essential Before you start looking for a home, become an educated consumer. Knowledge is power and misinformation gets in your way. First, learn about the process and requirements for buying a home. Common misconceptions include: renting is always cheaper than buying, you have to be a Permanent Resident of the United States to buy a home and you have to have a huge down payment to qualify for a mortgage. Here are the facts. You only need a work permit to buy a house. And in some cases, the starter costs of renting may be about the same as a house down payment. As you start your search to find a home, keep informed. Talk with people who've gone through the home-buying process ... attend home-buying seminars ... and schedule an appointment with me to discuss where you are in the process and figure out what the next steps are to achieve your dream of home ownership. Choosing Your Real Estate Professional Deciding to find and buy a home is one of the most important decisions of your life. It combines your personal hopes and dreams with wanting what's best for you and your family. It means making changes. That's why it's in your best interest to choose an experienced real estate agent who listens to and understands your needs, and works in the area where you want to live. When you choose me, you're dealing with an experienced professional who understands your concerns and will provide you with the personalized service that makes all the difference. As a broker, I have offices from the city to the North Georgia mountains and everywhere in between! I understand the life changes that real estate decisions can bring. What should you expect in our first meeting? I typically will talk to you about the neighborhood where you want to live, home prices, schools, transportation, and the surrounding commercial and residential areas. Before you find a home, I can also assist you in talking with a mortgage representative about getting a "mortgage pre-approval". It's helpful to get pre-approved before you find a home so you'll know how much money you have to spend. You can calculate mortgage payments to see how much you can afford in monthly payments. Have a Financial Plan Before You Find a Home You can reduce the stress of home buying by thinking ahead. Before you find a home you want to purchase, develop a financial plan. This plan becomes your guide not only for saving money for the down payment, but also for covering other expenses such as your credit check, mortgage application and closing costs. For more details about what to expect financially, just ask me. Establishing Credit Having an established credit history plays an important role in the home buying process. It's never too soon to start building a good credit history. Start by diversifying how you pay for things; don't pay for everything with cash. Pay your bills on time, limit your debt, reduce the number of credit cards you have, and use them responsibly. Your goal is to show that you are financially responsible and a "good credit risk." It's also important to review your credit report. This is a record of past and current debt that states when, how and if you paid. Make sure that the information contained in your credit report is accurate. By reviewing your credit report now, you'll have the opportunity to correct any errors. I can help you get a copy of your credit report to review. Don't wait until you've found a home to do this. Do it now. Why is this so important? Your credit history is one of the documents that give the mortgage lender confidence in you. The better your credit history, the better your credit score. And the higher your credit score, the more likely your mortgage lender will offer you more mortgage options with better terms. You're smart to think ahead. The best approach to buying a home with few financial surprises is to learn how homes are financed, find out how and where to get financial assistance, and understand all the costs involved in addition to the cost of the house. What follows is a brief explanation of (1) Mortgage Pre-approval, (2) Down Payment, (3) Mortgage Options, and (4) Closing Costs. (1) Mortgage Pre-approval A pre-approval is a simple calculation done by a mortgage lender that tells you (a) the amount you'll be able to finance through a loan and (b) what your monthly payment will be. When you find a home to buy, a pre-approval also reassures the seller that you have the financial means to purchase his or her home. Contact my preferred lender for help in getting a mortgage pre-approval. Once you know the amount the bank will lend you, the next step is to determine how much to save for your down payment. This will help you define the types of homes within your budget. Keep in mind the monthly costs associated with home ownership include not only your mortgage payment, but also real estate taxes, homeowner's insurance and utilities. You may not realize it but when it comes to getting mortgage financing, you have options. Which one's right for you? Visit my Preferred Partners page for mortgage companies I am proud to recommend. You can also use my Mortgage Calculator. And I'm happy to help you make sense of both the financing process and your financing options. (2) Your Down Payment A down payment is the money you pay up front toward the purchase of your new home. Typically, the larger your down payment, the less you pay each month on the mortgage, and the lower the interest costs will be over the life of the mortgage. How large should your down payment be? Many people make down payments of 5%, 10% or 20% of the sales prices of the homes they buy. There are also loans available for buyers with down payments of under 5%. However, the right percentage for you depends on many factors. Talk to a Mortgage Professional to learn more about your mortgage options and which is the right fit for you. (3) Your Mortgage Your options for financing the home you find depend on your personal financial situation and your unique needs. Contact my preferred lender for help getting a Mortgage Pre-approval. This will help you gauge how much you can afford to spend on a home and the financing options available to you. Here's an overview of typical financing options available:
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