First Time Homebuyer

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First Time Homebuyer

The first thing to do when you're going to buy your first home is to go right ahead and be pre qualified for a loan. In order to do this you need to sit down with your lender and learn about the different types of loans. Together you and your lender can come up with the best loan for you. The main three are FHA, VA, and Conventional loans. FHA loans limit you to an $118,750.00 buying power. But, the bank is more lenient on slow credit and you can use 100% gift funds. VA loans are strictly for military veterans. Conventional loans give you a 240,000.00 limit. But, the buyer must have 5% of the sales price. To apply for a loan there is a list of things that you will need. You will need to bring W-2’s for the past two years. If you are self-employed then you will bring complete tax returns. You also need your most recent pay stubs covering the last 30 days along with your last 3 months bank statements of all checking, savings, and asset accounts. Other than that you need the name and account numbers of all creditors, certificate of eligibility (if you are applying for a VA loan), and Landlords name, address and telephone number. When all that is done, it is now time to start looking for a real estate agent to help you along your way.

Picking the right agent is something that you really need. If you end up with a lousy agent, you might be doing all the agents work. Choosing a good agent could make buying your first home the pleasant experience that it should be. You should interview at least 3 agents if you don’t already know someone who has the experience. You should ask them questions about their status as an agent. Meaning, are they licensed Realtors. This is something important about an agent. Agent’s who are realtors have a number of advantages such as being able to use a Multiple Listing Service. Multiple Listing Services are cooperative information networks of realtors that provide descriptions of most of the houses for sale in a particular region. Another good question to ask is whether or not the being a real estate agent is their full-time career. You don’t want someone who can only be “tuned in” for half the time. The other thing that is a good idea to discus would be the party that the agent is representing. Let the agent explain the laws of agency in your particular area. The law of Louisiana presumes that th...

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...iven it to the seller’s agent, they have the right to come back with a counter offer to the agreement. On line 128 of the purchase agreement it says, “The offer to purchase is acceptable, provided the purchaser agrees to the following changes.” This is where the seller is able to make amendments to the buyers offer. After the seller has made the counter offer and the buyer has accepted, we prepare to close the transaction.

Now is the time to apply for a loan if you haven’t already done so, while the closing attorney receives the purchase agreement for pre-closing processing. The lender orders the appraisal of the house to see if it is worth what you are willing to pay. If so, the loan package is prepared and approved. The title company then sets up the closing and notifies each party (buyer and seller) where their money is going. An abstract is ordered to make sure the buyer receives clear title to the property, and the loan paperwork is prepared. A closing date is set and everyone arrives on that specified time to sign all paperwork. The title Co takes all the paperwork that has been signed to the courthouse to be filed. The New owner can now take possession of the property.

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