Sunday, January 26, 2014

Down payments for First Time HomeBuyers

This is difficult to answer because more information is needed i.e. your background, cash available, your thoughts about terms of ownership, etc ... etc ... because a VA loan can required -0- zero down and up, FHA loan can require 3.5% down and up, Conventional loan can require 5% and up ...... The best thing you can do for yourself as a Buyer or prospective Buyer is to get Pre-Approved (not pre-qualified but PRE-APPROVED) there is a huge difference, some agents know it and some don't but it can make a huge difference in your offer being not only reviewed but also accepted. You should immediately contact a Lender / Mortgage Banker / Mortgage Broker with a solid reputation or from a solid referral source ( I generally provide 3 different sources) and have a good conversation with this person. Obviously, you'll be providing all your financial records for the Pre-Approval however you should tell them what your plans/goals are for ownership not just that you want to buy a house so that they can advise you properly to set you on the road to achieve those goals. You should also ensure that you know the maximum loan/program you qualify for - WHY??? - If you find that dream house that has everything on your list and a few others ... you need to know if it's attainable without fooling yourself, the Seller or the Agents involved. If you do - WOW - Fantastic; and if not ... the search continues. This would apply to existing homes, which I assume you are looking at in Campbell; however, many times new home builders have incentive plans to close with them if you use their Lender including -0- down options (which can preclude the relationship you developed with the above-referenced Lender) Why is the Pre-Approval so important ??? In today's market, no sooner than you find a home that you really, really like, another 1-3 prospective buyers have seen the property and it's also on their list. If you have had the right conversation with you Lender, they can immediately issue you a new or amended letter to identify the address of the subject property and include the Approved loan amount of the offer you are making. This is not the time to make a call to the Lender, search for all your financial records, make an appointment and then try and catch up with everyone else. Hit fast and hard for success !!! Best of luck in your endeavor !!!