NEW HOMEBUYER REPORT: 7 Tips you must know before you buy your first house

Buying a new house can be a stressful process for a new hombuyer.

Here are 7 quick tips you need to know before you look for a new house.

Here are the tips to consider

 

SAVE FOR THE DOWN PAYMENT

Most renters believe you need 20% down, but this is no longer true.

You can find loan programs from 0% to 3% if you qualify. 

Here are two 0% down loan programs you may qualify for.

VA Loan 

USDA Loan programs in select area Louisiana 

 

CHECK YOUR CREDIT SCORE

Don’t submit your info to any other site unless it is www.annualcreditreport.com

This is the only source for your free credit report with no strings attached.

It is authorized by Federal law and supported by Equifax,TransUnion and Experian.

You get a free copy of your report every 12 months from each reporting company.

 

The higher your credit the less you will pay on your interest rate and your homeowners insurance.

Homeowners insurance companies use credit to develop your premium or rate so a higher score will give you a lower rate.

 

HOW MUCH HOME CAN YOU AFFORD?

Before you even consider driving around looking at house or talking to a real estate agent, you need to pre-qualified by a loan officer or mortgage loan specialist.

A local loan specialist is Jason Pippenger with Interlinc Mortgage.

A quick phone call can qualify you and you will know how much home you can afford.

 

DISCOVER YOUR DOWN PAYMENT OPTIONS

Here are the Loan programs available in Louisiana

CONVENTIONAL LOAN: The traditional loan. Low rates, low down payments

FHA: A great governmental-backed loan for first-time home buyers or those with higher debt to income ratios.

ARM: Adjustable Rate Mortgage

JUMBO: For larger loan amounts up to $2.5 million.

INVESTMENT: For those looking to finance property they don’t plan to occupy and will rent out to others.

DOWN PAYMENT ASSISTANCE: For individuals needing help with a down payment. Many options available.

FHA 203K: Permits homebuyers to finance additional funds into their mortgage to improve to upgrade their home before move-in.

USDA: 100% financing, no down payment for homes located in an approved rural area as defined by the USDA

VA: A product tailored to individuals who are serving/have served in the military

REFINANCE: For individuals who currently own a property and are looking to either improve their financial situation or take cash from their property’s equity.

CONVENTIONAL RENOVATION: For individuals who need to finance in the cost of renovations into their mortgage.

 

BUDGET FOR CLOSING COSTS

Closing costs generally run between 2% and 5% of your loan amount.

You can also try to negotiate closing costs by asking the seller to pay for a portion of your closing costs or negotiating your real estate agent’s commission.

 

GET A FEW QUOTES FOR HOMEOWNERS INSURANCE

Be careful if you are going with the recommendation of your real estate agent.

They usually partner with insurance agents that will remove any coverage possible to get you to closing.

You need to understand that everyone involved in the closing of your new home will disappear except the insurance agent and  insurance company you choose.

Here are some questions to ask when you get your home insurance quote.

Does the policy have replacement cost on contents?

Does the policy include water backup?

Does the policy include personal injury (libel and slander)?

What is the wind deductible?

 

GET A HOME INSPECTION REPORT

The appraisal is NOT a home inspection report.  The appraisal only gives the lender the value of the property.

The appraisal is not for you, its for the lender.

You need to get a home inspection report.

The home inspection report provides you the buyer with the condition of the house.

It can tell you the condition of the electrical, plumbing, roof, air conditioning and heating.

A good home inspector can even call in other professionals as needed.

A licensed plumber to inspect the pipes?

A termite inspector to get behind some sheetrock to see if you have termite damage?

This home inspection report is for you to make a buying decision.

If the home has issues, you can address these issues with the seller and ask for the repairs to completed before closing.

A good local home inspection company is Spotlight Home Inspection, LLC

You can contact Mike Adams at Spotlight Home Inspection, LLC at 504.376.3366

 

How much does a home inspection report cost?

It’s based on the square feet of the home.

The cost can be as low as $299.

When you are going to buy a new house that could easily cost you a few hundred thousands dollars, do you think it is worth it to pay $299 to find out if the home has any issues?

The worst scenario is you buy a new house and two months later you have to make repairs.

Invest in a low cost home inspection report to make a well informed buying decision.

 

What’s this all about?

Understanding the new homebuying process will cause less stress in your life.

Partner with professionals that you can trust to help guide you through the entire process.

 

Here are the first steps in the homebuying process

MORTGAGE PRE-QUALIFIED

Jason Pippenger at Interlinc Mortgage 504.309.9711 or jasonp@lincloan.com

HOME INSPECTION REPORT

Mike Adams at Spotlight Home Inspection, LLC 504.376.3366 or mike@spotlighthomeinspection.net

HOMEOWNERS INSURANCE

Tim D’Angelo at FM Agency Group  504.348.3131 or timdangelo@fmagencygroup.com