what every first time home buyer needs to know about a new home loan
TRANSCRIPT
Buying your first home is an exciting time. Complete this checklist to ensure it’s a great experience.
• Clean Up Your Credit
• Qualify
• Budget
• Research: Lenders
• Realtor / Agent
• Find Your New Home
• Accomplish Your Goals
Clean Up Your CreditPay your bills on time, pay off small debts. Avoid new credit or major changes during loan process.
See article for more credit advice.
PITI: Understanding the Cost of Home Ownership
The total of your housing payment, taxes and insurance should be under 28% of your income.
Your total debt level not to exceed 36% of income.
See article for more PITI advice.
Qualify: How Much CAN You Spend?
Prepare documents: assets, income, expenses
Apply: pre-approval letter
See article for more down payment advice.
Budget: How Much Do You WANT To Spend?
Have a spending plan.
Pay into your savings first, spend less.
See article for more budgeting advice.
The Right Lender is as Important as the Right House
Loan term and rates (fixed / adjusted)
Property appraisal
Origination charge (good faith estimate)
The Right Realtor can be Vital for First Time Mortgages
Match your dream to your budget: knowledge of the market
Make an offer: negotiate costs and contracts
Closing: final walk-through, insurance, documents, payment
Visualize It: Finding Your New Home
Prioritize: must haves, bonus, deal breakers size, bathrooms, backyard, kitchen, pool
Location: neighborhood, schools, highway,public transportation, parks, shopping
See article for more advice on living the dream.
Accomplish Your GoalsPrincipal (auto payments): just one extra payment per year makes a big difference
Emergency fund (insurance deductible): plan for maintenance
See article for more pay off advice.