What You Need to Know About Buying Your First Home
Find Your Trusted Industry Partners
The primary partners you need to find in the home buying process are your mortgage banker and your real estate agent. Your agent will help you find your home, deliver your offers, negotiate those offers, and help close the sale.
One of our trusted mortgage bankers at Pacific Residential Mortgage will be your primary point of contact for any financing. They will get you pre-approved, gather the necessary documents from you, determine your loan amount, help you choose the right loan for your goals, and guide you through the mortgage process. You are in good hands with one of PRM’s mortgage bankers and our trusted agent partners.
Find Your Perfect Property
First, consider the general area that you want to live in. Whether it’s a particular city, neighborhood, or even a specific street or block, it’s essential to begin to narrow down your options. Consider a few things in the area like property taxes, nearby schools, restaurants, shopping, and activities in the area.
A few more important things to consider:
- Structural integrity
- Number of rooms
- Anything in the health and safety category
- Potential resale value
There are many things to consider when looking for the perfect first home. We work with experienced local real estate partners who will help you find the property that will become the home you love.
Financing Your New Home
The first step in the home loan process is pre-approval. To get pre-approved, we will verify your income, evaluate your assets, and examine your credit score and payment history. We will collect documentation like pay stubs, W-2 forms, and bank statements to get started. See the full list here.
Our team will then calculate your debt-to-income ratio (DTI) and will help determine which loan program is best for you. Ideal DTI ratios would be below 43%.
A combination of your DTI and credit score will help to determine the right loan option and the accompanying interest rate. Once we have worked together to determine your mortgage, you can buy a house!
Additional Tips for First-Time Homebuyers:
- There are costs that come with the home buying process. Your loan estimate should include closing costs, taxes, inspections, and any additional costs associated with buying the home. Sellers can cover some of the closing costs – so work with your mortgage banker to estimate your total costs.
- It is wise to have some funds saved for unexpected homeownership costs. Whether it’s unexpected repairs or unanticipated inspection fees, it’s advisable to have some emergency savings set aside.
- Don’t be afraid to ask questions. Our mortgage bankers are here for you! If you have questions or concerns, don’t hesitate to ask. It’s expected that you won’t know everything coming into you first-time homeownership journey.
For more information on buying your first home, financing, and homeownership tips, fill out the form below or contact us today.