Advice Preparing Buying Your First Home Purchase

Buying Your First Home Purchase

This BLOG On Buying Your First Home Purchase Was Written By Gustan Cho NMLS 873293

Buying Your First Home Purchase can be both exciting and stressful, especially if you are a first time home buyer.  Those who are Buying Your First Home Purchase should take their time and do the proper due diligence in choosing their new home.

  • The most important factor in home shopping is whether they can afford it. 
  • I would first consult with a mortgage lender to see what the buyer will qualify for and what the monthly housing payment will be
  • See if home buyer will be able to afford  new proposed mortgage payments and housing expenses without straining themselves
  • Remember that monthly mortgage payment is not only housing payment
  • The new homeowner will have the following expenses:
    • Property taxes
    • Homeowners insurance
    • Mortgage insurance premium
    • Homeowners association dues (if applicable)
    • Utility payments such as water, gas, and electric
    • Other expenses such as cable, and internet connection.
  • All of these add up and then some
  • Remember that as a homeowner and that they can no longer rely on a landlord for repairs.

Reserves

When Buying Your First Home Purchase, one of the most important things the new homeowners need to consider and have is reserves.

  • Reserves will be required in the event of major repairs
  • Mortgage lenders do not require cash reserves for first time home buyers if they have good credit and income
  • But I strongly recommend that first time home buyers have at least a 3 month reserves of housing expenses in the event of unexpected events

Case Scenario Of Needing Reserves

  • For example, we recently had a major deep freeze in the Midwest where temperatures tanked to 30 plus below zero
  • Many homeowners had their furnace break down and plumbing problems. 
  • These type of problems are high ticket cost repairs
  • Most of these repair vendors do not take monthly payments or offer a payment plan
  • Appliances break down all the time
  • As a homeowner, they will get unexpected problems that might cost a lot of money. 
  • I strongly advise that as a first time home buyer, they have several months of reserves even though mortgage lender does not require it

Hiring A Real Estate Agent

Hiring a professional real estate agent when Buying Your First Home Purchase is strongly recommended. Whether Buying Your First Home Purchase or selling existing home, the advice of a realtor is not required by is worth its weight in gold.

  • A realtor will assist clients in searching the right home
  • Real Estate Agents know the neighborhood as well as refer clients to reputable mortgage lenders and attorneys 
  • A realtor will assist their clients and protect their best interests
  • A realtor can get buyers a sellers concession towards closing costs so buyers do not have to come up with any closing costs
  • All buyers need to worry about is down payment on home purchase

Qualifying For Mortgage

Hiring the right loan officer and lender is one of the most important decisions a home buyer will make Buying Your First Home Purchase .

  • Not all lenders can be the right fit for buyer
  • Anyone with a 800 credit score or low debt to income ratio can get approved by any lender
  • However, borrowers who have prior bad credit, credit scores of 580, outstanding collections, then the chances are that they may need the help of a lender with no overlays and who specializes in helping borrowers with bad credit

The Gustan Cho Team at USA Mortgage is a national lender who offers the following:

  • USA Mortgage is a national five star lender licensed in most of the 50 states with no overlays
  • The Gustan Cho Team at USA Mortgage closes most loans in 21 days or less
  • Over 75% of our borrowers are folks who gotten a last minute loan denial or are currently going through stress in their mortgage process and transfer their loan to us and we close their home loans in record time
  • No overlays on FHA Loans, USDA, and VA Loans with a minimum of 580 credit score requirement
  • No overlays on Conventional Loans
  • NON-QM Loans where no waiting period after bankruptcy and foreclosure
  • Available 7 days a week

Please contact The Gustan Cho Team at USA Mortgage at 262-878-1965 or text Gustan for faster response at 262-716-8151 or visit us at www.gustancho.com or email us at gcho@usa-mortgage.com. We are available 7 days a week, evenings, weekends, and holidays.

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