What is a first time home buyer?
tips for santa clarita first time home buyers
A first time home buyer is anyone who has not owned a home in the last three to five years. Advantages of being a first time home buyer include special financing, different loan options, and sometimes more flexibility on guidelines. The home buying process can be an exciting period in your life. It is important to keep these tips in mind so you can have a great experience.
1. Get Pre-Approved
Speaking with a lender is the most important step. Your lender should be able to strategize with you in order to get you into a better position with the most buying power. You should talk about what type of down payment you want to pay (3.5%, 5%, 10%, 20%). The lender will look at your credit history to be able to determine what type of interest rate they can get for you. If you can improve on your credit, they will walk you through how to do so. Your lender will be able to determine how large of a loan you can receive based on your DTI (debt to income ratio) which is a formula of your gross income minus your monthly expenses.
2. Find Good Website or App
There are so many Apps and websites available nowadays with an enormous amount of information. The key is to have access to ACCURATE information. For example, there may be five hundred listings showing on an App you are looking through, but in reality, there are only three hundred listings available. Certain websites don’t have a direct feed from the MLS to give you the most accurate info. We have Apps that we like and strongly suggest for you. Give us a call and we can point you in the right direction.
3. Find a Trusted Local Lender.
When working with a lender, you want someone who understands your needs. It is also important to use a lender who works full time. Everyone has different schedules and it is important to have a lender who will work around yours. Not to mention having a trusted, local lender is important when writing offers because the listing agent may make you cross qualify with their lender if you aren’t approved with a known person. This can be detrimental when in negotiations as we have literally shown our hand to the opposition.
4. Find a Great Local Agent
When choosing a Realtor to work with, it is also important that they hear and understand your needs. You want a Realtor who will work around the clock and around your schedule as well. The best Realtors will go above and beyond for their clients. They will create inventory when inventory is not available. They are the ones who are not afraid to knock on doors, ask other Realtors, or ask any one they know, if they are interested in selling their homes.
Remember these tips when buying your first home and you should have a smooth and pleasant experience.