Let’s get your home listed, but first…
First Time Home Buyers-FHA Loans
No offense to my mortgage lender friends, but I think the most boring step for first time home buyers is learning about the types of loans available. For that reason, I’m going to keep today’s discussion about FHA loans short and sweet.
FHA, or Federal Housing Administration loans are the most common loans used by first time home buyers. Below are some important facts about lending guidelines for FHA loans.
- Minimum down payment is 3.5%
- Maximum loan amount is $271,050
- Minimum credit score is 640
- Maximum Seller contributions can be up to 6% of purchase
- Source of down payment can be gifted to you or can be a secured loan
The 3.5% is your down payment only. You will still need to write a check for your earnest money and at closing you will have to come in with money for your closing costs.
Earnest money is the check that will be presented with your offer for the seller’s broker to hold in a trust account until closing. That money is used towards your down payment, but the check will be cashed once your offer has been accepted, so make sure you have the money in that checking account. Depending on the price of the home, the seller and other miscellaneous factors, earnest money is typically $1,000.
Closing costs are the fees the bank will charge to give you a loan. It is typical to ask the seller to help with these costs, which is where “Maximum Seller contributions” comes in. Your Realtor will be discussing this in length when you’re ready to write an offer because more than likely, you will be asking the seller to contribute to your closing costs.
As a first time home buyer, you may face some challenges finding a home that will suit your needs that you can afford. My advice is to be patient and always listen to your lender and your Realtor. If you need help finding an awesome lender, call me!
You should also call me if you need an awesome Realtor! P.S. This is my blog so I can say whatever I want.
Have a super day everyone.
First Time Home Buyers
Happy Thanksgiving!
Hopefully, tomorrow you’ll be surrounded by people you enjoy, having great conversation and eating way too much. In case you’re worried about running out of things to talk about before the food coma hits, I thought I’d present a topic you could bring to the table…first time home buyers.
Starting next week, I’m beginning a 90 day running dialogue on how to be an informed, educated and savvy first time home buyer. I would love to hear from you with questions, suggestions, stories from your first experience (good and bad), and things you did or will do differently the next time you buy a home.
You see, I am convinced there are lots of people out there who are ready to buy, but don’t know where to begin. Of course, no matter how much preparation we do there’s always the chance that something could go wrong in a real estate transaction. But for the most part, this should be an exciting, happy occasion and I work hard to make that a reality for all my buyers.
I’ve had lots of experience with first time home buyers over the last 13 years in real estate. I volunteer as much time as possible teaching “First Time Home Buyer” classes hosted by The Village Family Service Center because I am committed to this group of buyers. I believe that if I don’t take care of my buyers the first time around, why would they come back to me a second and third time?
So, here’s what’s coming over the next few months:
What should first time home buyers do first?
What kinds of loans are available to first time home buyers?
What are the benefits of a first time home buyer class?
How much will it cost for a first time home buyer to use a Realtor?
How can a home warranty help a first time home buyer?
The list goes on as you can imagine. If you or someone you know has a question, please share it with me. Chances are, someone else has been wondering the same thing!
Tune in next week, but in the meantime, have a wonderful Thanksgiving day!
Business owner and new home owner!
Meet Katie Lewis…Katie doesn’t do anything small or quietly! When she’s excited, she’s very excited and she shows it! As a Realtor who’s been working with clients for 13 years, having a first time home buyer that was this excited was tons of fun!
You may have heard of Katie. She’s an accomplished photographer whose work has been featured in some serious wedding magazines. She’s a really interesting blogger and a super fun Instagram user that usually makes me laugh out loud. Katie doesn’t remain idle for long and is always exploring new ideas. She’s a budding seamstress, entrepreneur and just reading about her makes me tired some days.
Katie’s first home buying experience was somewhat typical. There was a certain amount of stress, mixed in with some eagerness to jump in head first. But Katie was a buyer who really knew what she wanted and talked herself out of a few candidates that would have been a home she settled for, rather than one she fought for. We worked together for almost a year, mostly during her slower, non-wedding season. And Dad usually came along, which was great because he’s a retired plumber and had a lot of knowledge! Just when I thought we were going to take a break for a while, she called me to see one that had just come on the market and it was all over. This was it…the one.
Things were a little tense for a bit because we were competing against another offer, but Katie’s offer got it done, although I’d like to think her Realtor had something to do with that! So Katie is a new home owner and from her Facebook and Instagram posts, I know that she’s determined to get moved in and completely settled in record time; which is so Katie!
Be sure to check Katie out at www.katielewisphotography.com. You’ll be able to see her accomplishments, some samples of her work and you’ll immediately get a feel for the kind of honest, hard-working person she really is.
One of the things I like about Katie is that she runs her business a lot like I run my own…she doesn’t expect your business, but she appreciates it and she’ll work hard to earn your loyalty.
You were an awesome client Katie. Thank you for choosing me to help you with your very first home purchase!
If you or anyone you know could use some help, whether it’s your first time or your last time, give me a call. I’d love to help you too!