This ARTICLE On Advice In Moving Out Of Your Parents House And Buying First Home Was PUBLISHED On October 5th, 2020buy or rent
Tips and Advice In Moving Out Of Your Parents House and buying a first home:
- Let’s face it, living with your parents has its ups and downs
- I remember when I lived with my mother after college
- It was quite an adjustment
- However, living with my mother allowed me to save money and buy my first home
- In this blog. we will detail some tips to prepare to move out of your parents’ home, what to expect during the mortgage process, and how to apply for a mortgage to buy your first home
- Gustan Cho Associates have many mortgage products for first-time homebuyers
- We do not have any LENDER OVERLAYS on our Conventional, FHA, and VA mortgages
In this article, we will cover and discuss Advice In Moving Out Of Your Parents House
Advice In Moving Out Of Your Parents House And Buying First Home Or Rent
Advice In Moving Out Of Your Parents House And Buying First Home and where to move to?
- So, you’re currently living with your parents and want to move out
- Now the dilemma, should you rent, or should you buy it?
- You may be able to rent a bigger place for less money however you are not building equity
- There are a few questions need to ask yourself to help make this decision
- First of all, how long do you plan on living in the area?
- How much money do you have saved for a down payment/closing cost?
What kind of consumer debt do you currently have, and do you need to pay some of that off before buying a home?
Should I Rent Or Buy A Home
If you are not sure how long you want to stay in a specific area and think you may only be there a year or two, it may make more sense to rent.
- If you are going to stay here for a while, buying a home and building equity is in your best interest
- Now, how much do you have saved for a down payment?
- The more you have saved, the better off you will be. Buying a house can be expensive
Since we work with so many first-time homebuyers, we have a few tips for submitting your offer.
Down Payment And Closing Costs On Home Purchase
Asking for seller paid closing cost is very common in today’s real estate market.
- Most first-time homebuyers put 3% or 3.5% down on their first home
- It is important to have a safety net for any home-related expenses that come up after you purchase the property
- The moral of the story is to not put all of your money down on a property
- Keep some in savings
- Besides the down payment, we also encourage you to stay within your budget
- Just because you may qualify for a $2000 a month mortgage payment, does not mean you need to buy a house that expensive
- Your comfortable monthly budget and the max debt to income ratio you qualify for our two separate things
- It is important to use an educated loan officer to come up with a long-term financial plan
Gustan Cho Associates only hire highly experienced loan officers who take the time to educate you on the process.
Advice In Moving Out Of Your Parents House And How To Prepare To Qualify For A Mortgage
What to expect during the mortgage process?
- I am sure you have heard the crazy horror stories of buying a house
- However, it does not need to be like this
- It is important to work with a loan officer who has your best interest in mind
- Gathering upfront documentation is key
- It will help the whole process goes smoothly
- There are many factors that can affect the smoothness of the mortgage process such as, sources of income, sources of down payment, credit score, and credit profile
- You and your loan officer are on the same team
- No reason to hide any information from them
The underwriting process is so vigorous with the federal regulations, anything you had from your loan officer will come up during the process.
Finding A Lenders Who Can Qualify My Mortgage Loan
How to apply for a mortgage?
- This is the easy part
- The application is completed online or over the phone
- Most clients use the online apply now button
- You simply fill out that form to the best of your abilities
At that point, you send your loan officer some key income and asset documentation.
- Last 60 Days Bank Statements – to source down payment
- Last 30 Days Pay Stubs
- Last Two Years W2’S
- Last Two Years Tax Returns
- Driver’s License
Obtaining A Pre-Approval To Start Home Shopping
Once your loan officer has the proper documentation and your application, they will then complete the pre-approval.
- If there is an obstacle standing in your way, your loan officer will come up with a financial plan to help you qualify as soon as possible
Assuming you are good to go, your loan officer will then provide you with a preapproval letter that you and your realtor can go out shopping for a home with.
Finding A Home And Entering A Purchase Offer Contract
Once you find a home and have an executed sales contract, you will then send that contract to your loan officer.
- Your loan officer will send you a detailed loan package that you electronically sign
- That will then give Gustan Cho Associates the permission to start your loan
- Our processing staff will order the required verifications and we will send your documentation to the underwriter
- During the underwriting process, you will also have the home appraised
- When your loan comes out of underwriting, the underwriter will let us know what documentation we need to achieve the clear to close
- These items are typically small such as a letter of explanation, updated pay stubs, or bank statement
- Once you send these remaining items in and we receive the appraisal and title report, we then send a loan back to underwriting for the clear to close
At this point, we say congratulations your loan is clear to close and the closing will take place at your title company!
Choosing A Direct Lender With No Lender Overlays
Gustan Cho Associates Mortgage Group is one of the very few national lenders who does not have any lender overlays on government and conventional loans. We are experts in helping first-time homebuyers. We are here to help guide you through the entire mortgage process. We are here to help you buy your first house. Please reach out to Mike on 630-659-7644 or text us for a faster response. Or send an email to firstname.lastname@example.org to start your loan application. Either Mike or one of our highly skilled loan officers at Gustan Cho Associates will assist you! Once again it is important to remember that we are all on the same team. We are here to help seven days a week even on holidays. Be nice to your parents if they have let you live with them through some of the hardest years of your life. Without them, you would not have this opportunity to move out of their home. Please give us a call with any general mortgage questions or to start your application today!