I’m looking to become a first time homeowner. What do I need to know more than anything?

Posted on Jan 22, 2013 in FHA Information

Question by J Len: I’m looking to become a first time homeowner. What do I need to know more than anything?
Any info on programs out there would help too. I’m a teacher and a single dad in Florida.

Best answer:

Answer by djrider
I would say the biggest advice to any first time homeowner is patience. It can be a long emotional rollercoaster buying a house. Another tip is to find a good company that does home inspections. I’ve heard horror stories of people getting a good deal on an inspection only to find out that they cut corners and their house is falling apart.

What do you think? Answer below!

5 Comments

  1. How much house can you afford. What area. What must the house have such as 3 bdrms, 2 baths, garage and so on.Keep an eye on homes for sale in your preferred area. Looking them up on-line will give you a price basis. Either you can afford what and where you want or lower your expectations.    Make sure all your finances are in order. Shop around for a great mortgage deal  Make an appt. with a Realtor.  House inspection and title search are worth the money.  good luck

  2. first of all can u afford to pay the loan/household bills/food n not get into debt
    also if i were u i ‘d wait for at least 3 years n save the money
    world economy n especially us will b very fragile next 3/4 years

  3. Find a good realtor. They will tell you all you need to know. Interview a few of them at first and look for decisive actions.

  4. The lowest rate, lowest down payment mortgage loans are through FHA. There are teacher programs available, but every teacher I have talked to did not end up going through their local disctrict’s program.

    FHA requires:
    1) Gross income be MORE than 2X the mortgage payment + all bills on credit
    2) AT LEAST a 580** score with collections paid off and best if ccs paid down/off
    3) 3% down, but there are down payment assistance programs (Ameridream)

    Income: If you make $ 3000 gross salary, have $ 500/mo in st loans/car/CC bills your mortgage payment (Princ, Int, Tax, monthly Mort Ins) may NOT be more than $ 850/mo. That is about a $ 100,000 house. Depending on taxes/insurance.

    I closed a handful of FHA purchases last month. All my buyers put ~$ 1000 into the house ($ 350 appraisal, $ 25 credit, $ 500 earnest $ , $ 250 inspection) and walked into a house with $ 15000 – $ 25000 in equity! You can too!

    Get with a mortgage professional who KNOWs the guidelines to help you fix up your credit, plan for the payment you want, and determine the purchase price you can qualify for (often 2 different things).

    Best of luck!

    ** FHA doesn’t have a minimum score requirement, but Ienders can’t sell FHAs with a lower score.

  5. while David is correct about FHA, and this is the best way to go (www.fha.com, or http://www.fha.org for more details, and first time home buyer programs) the best piece of advise I can give is this. know exactly what you want out of this transaction. Are you purchasing a starter home and plan to upgrade in 5 years? Are you hoping to pay this off quickly to help fund college or retirement? Do you want to stay in this home until you retire? Have you even thought about this, probably not, you might not had the chance to. Well think about it. DO NOT let the mortgage dictate you, you dictate the mortgage, know your situation today and structure the loan to meet your future dreams and goal. Contrary to majority belief here, a mortgage can address immediate needs AND finance your future as well. Opinions will vary here, but start working your network to see if anyone knows of both a realtor and a mortgage professional. Many realtors either have financing available through their company or have exclusive workings with a few mortgage professionals. Personally, I like options, so I try to keep it seperate. If you keep it seperate, there are more hands in the pot, if you go with a realtor, you may limit your options and they may not customize a financial solution that fits all of your needs. That’s a decision that you should make, not anyone here. Networking is usually a good way to find people like this. You may want to get pre-approved first. It really doesn’t mean all that much, basically, your income and credit allow your mortgage professional to submit a loan package, but it does give you an idea of how much you can afford, thus giving you an idea of your home price range. This may lead you to seek a mortgage professional first just to see what you can afford. Make sure you know what you want, not for today or tomorrow, but in 15, 20, 30 years from now as well. I know plans change, but most people, when they set goals, want to achieve them. If you meet a realtor or mortgage professional that doesn’t ask you about your future goals and dreams, simply walk. You can reach your dreams and goals while purchasing, you just need the right people to help you. Feel free to ask questions, and good luck