Aug 072017
 

I love being a Remax Real Estate Agent. Nothing brings me more joy than helping my first time home buyers find the perfect home, at the perfect price. I always say that when you find your forever home, you will know it. It will just FEEL like home. But though the gasps of excitements, and tears of joy, I realize that many of my clients are more than first time home buyers. Many are first generation home buyers, as well, and being the first person in your family to purchase a home can be pretty overwhelming. I hope that this blog post can help alleviate some of that stress.

Things All First Generation Home Buyers Should Understand

  • Purchasing A Home Is A Financial Investment

Brachel Rogers explains buying your first homeI tell all my buyers that once you decide to buy a home, you should think of it as an investment. Most business minded people agree, that you should always position yourself to receive the greatest return on any investment. So I advise them to study the market, research the different school districts, and to check out different neighborhood associations. It is very important to see if the value of the home you plan to purchase will increase or decrease over the years.

  • Not All Home Mortgage Loans Require 20% Down Payments

There are many types of home mortgage loans. An FHA loan only requires 3.5% of the purchase price as a down payment. USDA home mortgage loans are 100% financed, and require no down payments. VA home mortgage loans are 100% financed, as well. In addition, lenders may require only 3%-5% percent down on conventional loans. The days of NEEDING 20% of the purchase price, as a down payment, are long gone.

  • Mortgage Lenders Use Your FICO Score, Not Your Vantage Score, To Determine If You Qualify For A Mortgage Loan

While there is a new Bipartisan Senate Bill being discussed, for the moment home mortgage lenders are still using FICO scores to help determine if a person will qualify for a home mortgage loan. Although your vantgage score may be much higher, your FICO score uses factors, such as income, and current debt, to determine qualification for home mortgage loans. In addition, in order to qualify to purchase a home, mortgage lenders will pull FICO scores from all three major credit bureaus, and use the middle FICO score.

  • Credit To Debt Ratios and Debt To Income Ratios Also Impact The Amount Of Your Mortgage Loan

Credit Scores are not the only factors that determine if a home buyer will qualify for a mortgage loan. Freddie Mac and Fannie Mae provide guidelines for all USDA, VA, and FHA loans. First, the lender will make sure that the buyer has sufficient income to purchase a home. Next, the lender will access the buyer’s prior financial obligations in order to determine the buyer’s debt to income ratio. The home buyer will need to be able to afford the new mortgage payment, still pay all prior financial obligations, and have a percentage of income left over in order to qualify for purchasing a home.

take that first step to buying your first homeSo many of my first time home buyers are first generation home buyers, as well. Many of my buyers want to purchase a home, and many of them qualify to purchase. However, they are overwhelmed with not knowing where to begin, and they don’t have the benefit of mom and dad’s experiences. I hope that this post has shed some light on a few topics. I also invite you all to contact me with any questions. I would love to schedule a consultation to place you on the path to home ownership!

Let Me Get You Those Keys,

Brachel

 

 

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May 302017
 

First Time Home Buyers Should Speak With A Mortgage Lender Before Shopping For A Home

Talk to a mortgage specialistI advise all of the first time home buyers that I work with to speak with a home mortgage lender before we begin to shop for homes. This is because there several factors involved with being approved for a home mortgage loan! 

First of all, it is important for the real estate agent to show the home buyer homes within their price range. Mortgage lenders will verify income. In addition, there are several types of home mortgage loans. The home buyer’s credit score, as well as debt to credit ratio will also impact the amount of the home loan.

It is not uncommon to have a 640 credit score and still not be approved for a USDA home loan. Perhaps the annual income of the home buyer exceeds the mandated allowance, or the debt to credit ratio will be above 41% with a home mortgage. Speaking with a mortgage lender first allows the home buyer to choose the home mortgage loan that is best for them, and helps the buyer to choose homes that are within the price range of the pre-qualification letter.

When A Home Buyer Is Prequalified, The Seller Knows They Are Serious About Purchasing A Home

home-buyers pre-qualification letterShopping for a home is somewhat similar to shopping for a car. A good real estate agent will work on behalf of the home buyer in order to get them the best deal possible when purchasing a home. When the home buyer takes the time to get prequalified before searching for a home, it lets the seller know that the buyer is serious about purchasing. Often times, when the seller knows that the home buyer will still buy a home even if the home buyer doesn’t agree with the seller’s terms, the seller will negotiate a final selling price that may benefit both parties.

As you can see, it is very beneficial to get pre-qualified before you start searching for your forever home. Don’t worry, I promise to be there every step of the way in order to make the journey as stress-free as possible! So call me, and visit my preferred lenders. I can’t wait to help you find the perfect home!

Let Me Get You Those Keys,

Brachel

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