We’re first time home buyers – where do we begin?
Buying a home is one of the best choices you can make. Rather than paying money to your landlord so that he can be closer to owning an asset outright each month, when you make your monthly payment each month a portion actually goes to your benefit – when you sell the home someday, as long as the market is in a good place, that money is refunded to you (called equity) and you can use it to buy again. It is, in effect, a forced savings plan and over time you can amass quite a large amount of savings while you are simply doing what you would have done otherwise – paying for housing each month.
To buy a home, however, you must have two things to start: a down payment and good credit. There a host of specialty loan products for first time home buyers far too extensive to review here, but figure on saving no less than 2.5% of the purchase price for a down payment if you are able to use an FHA product or 10% if you are going to use a typical mortgage. Credit scores are also key. Again, there are many things you can do to help or hurt your credit as you prepare to buy your home. Do not open any new credit – don’t buy any new cars. Pay all bills on time.
When you think you are ready, start by finding a full-time buyers agent. We now have Buyer’s Agency in this state and you need someone looking out for you from the outset. Check the agent’s website, review references, interview if you wish. Make sure you understand what the agent will do for you and be sure you have done your homework and are selecting the best agent for your needs. Once you select an agent, you will need to sign two documents: a Consumer Notice, informing you of your rights, and a Buyer Agency Agreement, whereby you actually hire the agent to work for you. While the seller still pays the commission, an Agreement is still required to create the legal relationship whereby the agent is working for you and not the seller.
Your agent should then refer you to a mortgage broker for a pre-approval. The broker will review your assets, liabilities and credit and give you a written statement of how much you can afford to buy. This step cannot be skipped. There is no sense looking at homes you can’t afford.
With pre-approval in hand and agent on board, you are now ready to begin the home buying process…stay tuned next week and I will continue to walk you through the process…its when the fun begins!
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An exceptional opportunity to live on 42 gently rolling acres in very desirable Sewickley Heights. Beautifully remodeled, this classic historic colonial perfectly blends sophisticated living, modern amenities, and stunning architectural details throughout! Featuring 6 bedrooms, 7 full and 2 half baths, this home boasts a grand entry hall, large open kitchen and inviting two-story family room, well-cabineted butler’s pantry, two mudrooms, handsome private den, spacious formal rooms, main-level gameroom with three walls of windows, large bedrooms and fabulous master suite with dressing room. Glass doors open to charming patios which spill out onto the sprawling lawns! Wonderful pool, outdoor kitchen and living space with impressive outdoor fireplace offer ideal venues for warm-weather entertaining and fun! Four car garage. $4,250,000
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Office: 412-741-2200 x238