Secret Academy 3.0 is here! Better than ever! Click Here!

First Time Home Buyers Guide

first time home buyer

Buying your first home can seem complicated and time consuming, but fortunately for you.  Secret Consulting brings you the quick easy guide to buying your first home. We will even go as far as to show you what benefits exist for those that have decided to take the plunge and purchase their first home.

Why buy when you can rent?

Buying your first home will actually make you realize how much cheaper it can be than renting and the feeling of ownership is indeed priceless. There are many benefits to buying your first home, from Government tax credits (up to $8000) to the additional tax write offs and of course the freedom to live your life without a landlord.

The first step would be to know what you can afford. You can do that by getting a pre approval with just about any lender or bank. Look at your bank or credit union first as they will most likely have the most conventional and ordinary mortgage products. Look to get a pre approval on a 30 year fixed mortgage as it will be a clear indication of what you can really afford. There are many articles on our site on ARM loans and other creative mortgage products but until you are savvy I would stay away.

Once pre approved, simply get a letter from your lender and find yourself an agent. Here are some great recommendations around finding an agent. There are many agents and many realtor agencies out there that you can go through but we highly encourage you to do your homework based on what you are buying. If you are buying a foreclosure or a short sale, make sure your agent is well connected with banks and has a track record to get you the deal you want in a timely manner. Short sales and foreclosures can be very though to negotiate especially for a newer agent. If buying in a different market or state, make sure you contact a popular agent that is on site, as they will know the ins and outs of neighborhoods better than a CA based agency that can do business in other states. Making sure you get references is most important, negotiating your fees isn’t as in today’s market is booming and there are plenty of customers looking for agents and they are not interested in negotiating their fees, so you might as well get a better deal for your money.

Once you have selected an agent and gotten a pre approval, simply pick the home you want to buy and get ready to start going through your old files to get your loan finalized. Your lender will most likely need you to provide several documents in order to finalize your loan. Your pre approval is based on your word, which at this point you will be asked to prove with documentation of your income, bank account balances, proof of down payment and a contract on the home you want.

Most loan programs out there allow you to purchase with only 3 % down but the reality remains that without 5-10% you may not have enough support to actually get your home. I urge you to reconsider if you are over extending yourself for a mere down payment.

There you have it, we just covered the basic steps in preparing to buy your first home, make sure to check our related articles and read more about loans, mortgages and educate yourself as a first time home buyer.