This BLOG On Buying Your First Home Purchase And How To Get Qualified For Mortgage Was Written By Gustan Cho NMLS 873293 And UPDATED On January 18th, 2019
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 lender to see what the buyer will qualify for and what the monthly housing payment will be
- See if a 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.
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 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 make 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
This holds true even though the mortgage lender does not require it.
Hiring A Real Estate Agent When Buying Your First Home Purchase
Hiring a professional real estate agent when Buying Your First Home Purchase is strongly recommended. Whether Buying Your First Home Purchase or selling an 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 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 a home purchase.
Qualifying For Mortgage When Buying Your First Home Purchase
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 an 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
Gustan Cho Associates is a national lender who offers the following:
- Gustan Cho Associates Mortgage Group is a national five-star lender licensed in most of the 50 states with no overlays
- Gustan Cho Associates closes most loans in 21 days or less
- Over 75% of our borrowers are folks who get a last-minute loan denial or are currently going through stress in their mortgage process and transfer their loan to us
- The end result is that 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 us at Gustan Cho Associates at 262-878-1965 or text Gustan for faster response at 800-900-8569 or text us for faster response. Or email us at firstname.lastname@example.org. Or visit us at www.gustancho.com or email us at email@example.com. We are available 7 days a week, evenings, weekends, and holidays.
January 18, 2019 - 3 min read