Home Ownership
We know what it takes to buy a home. The process can be confusing and frustrating for a new potential homeowner. Things can change quickly in the real estate market and we want to make sure you’re ready. We pride ourselves on educating people so that the process of buying your home can be done with confidence, not intimidation.
We invite potential homeowners to come meet in small groups before the home buying process begins. We hold workshops weekly, bi-weekly, or monthly depending on the time of year. We educate on the overall process because while the realtors within our network are knowledgeable and very helpful, we have to face the fact that their time can be limited.
We might as well give you a head start on the knowledge you’ll want to acquire. After you find the home you want to buy, you will need to qualify for financing, unless you can purchase the home with cash only.
What a lender can provide you, in the way of financing, is largely dependent on three things. The first of these is your credit, or your history in paying for your current rent and living expenses in a timely manner. The lender will pull a credit report and look for what’s called your ‘credit score.’ There are three credit bureaus and each one has their own private system to calculate their score. The lender will grade your lending risk by using the “middle score,” which is as simple as it sounds.
Secondly the lender will ask you about your income. Typically a few consecutive pay stubs and a W2 from the two most previous years from an employer will do the trick. However, if you’re self-employed they will need two years of your most recent federal and state tax returns to calculate your verifiable income. This will be evaluated, in relation to the other expenses that show up on your credit report, to determine how much of a mortgage payment you can afford.
Lastly, they will want to see how much you have to “put down” on the house. This is also referred to as a down payment. Typically the more you have, in the way of a down payment, the better your interest rate and settlement charges.
In our workshops we have a lender on site to go deeper into detail about the available programs and products. There will also be a realtor in attendance, who can talk about the actual search and home selection process, among other things. A title agent will be there to discuss the importance of a top-notch title company and settlement agent. Don’t walk into this huge piece of your life’s financial plan blindly. Let us walk with you.