Tips for First-Time Homebuyers Venturing into the world of home ownership can be a little scary, if you’re a first-time homebuyer. You just aren’t sure what you’re getting yourself into, what to expect, or what the process entails. Here are a few things to keep in mind when looking for your first piece of California to own. First, find a Realtor® you can trust. Realtors® have a wealth of experience in identifying and working with lenders, home inspectors, termite companies, and title companies, and negotiating the myriad of other hoops you’ll need to jump through. The home buying process demands a first-class group of professionals with expertise in various areas, and for the first time home buyer, assembling this posse is next to impossible. Trust your Realtor® to help. Second, before meeting with your lender, gather all the paperwork you’ll need. To do this, think “twos:” You’ll need your last two paystubs, W-2s, tax returns, and bank statements. Be honest with your lender about your monthly income and budget, including how much you currently spend on rent, utilities, entertainment, clothing, food and transportation. You need to show that you can take on a mortgage and stay within your means. Your lender will let you know your credit score and the amount you are qualified to borrow for a home. Next, discuss with your Realtor® exactly what you’re looking for in a home. And when you do find a home you like, take it! The biggest mistake I’ve seen first-time homebuyers make is passing up a home they like because they think they’ll find something better later on. You might find something better later on, but you might not, and in the meantime, you could easily lose out on a great house. [Don’t let perfect become the enemy of great!] Also, interest rates might rise, and the monthly payment is far more important than the purchase price. I always ask my clients to imagine leaving my office right now and seeing a $50 bill lying on the sidewalk. Would they pick it up, or would they step over it and keep walking in hopes of finding a $100 bill somewhere down the street? Trust your feelings. When you’re about to make an offer, ask your Realtor® to estimate your share of the closing costs. If they tell you that the Escrow Company will give you that information, or not to worry about it, you’re working with the wrong Realtor®, because this figure is easy to estimate and it’s something you need to know. Many first-time homebuyers are stunned by the amount they’ll need to bring to the table in closing costs to finalize the purchase of their new home. Lastly, once you make an offer on a home, DON’T decided to celebrate by buying something new for yourself like a car, new stereo, TV, etc. I’ve seen people do this and it’s resulted in them not qualifying for their home loan. Rather than get into a lengthy explanation here as to why this is true, I’ll simply ask you to talk to your lender about this. They’ll explain it. Wait until you’re in your new home, then celebrate. Interest rates couldn’t be lower than they are right now, so now is definitely the time to buy. Happy house hunting!!!!

from The Newberry Team - Los Angeles & Orange County Real Estate http://ift.tt/1oioFzX