Home Staging Questions
January 11th, 2008
Question: First time home buyer?
My husband and I are in the VERY early stages of buying a home. We have no idea where to even start. We have been looking at homes over the internet, and we are talking to a Realtor. Just through email. We are also going to get pre qualified for a VA loan today. With a credit sore of 680 last year we prequalified for 240,000. But now our score is 808. The house we are looking at is Only 229,000. I was wondering if we could get a loan for 240,000. and use the remaining for upgrades. Or do we need a separate loan for that? Sorry for all the silly questions.
Answer: Congratulations on taking the first step on becoming a homeowner. As you are getting a VA loan, thank you for your service to your country.
As I recently bought a house a few months ago, I think I can help you:
1. Get preapproved (not prequalified) for a mortgage. That means the lender will review your tax returns, W-2s, credit reports and verify your assets. They will then give you a letter with your maximum preapproved amount. Remember, this is the maximum amount they think you can afford. Buy a house that you can comfortably afford.
2. Next find a buyer's agent you can trust. Ask friends, relatives and co-workers to see if they have a realtor they can recommend. A buyer's agent works on YOUR behalf. You don't have to pay them as they split their commission with the seller's agent. They will show you houses they think you will like, help you write the offer when you find "the one" and make sure you are on track to make it to the closing table.
3. Start house hunting. Don't make an offer the first time though a house. Walk though a house, make notes on what you like and don't like. If you like the house, sleep on it and go back later. If you go though again and still like it, then you're probably ready to make an offer.
4. Once the negotiations have concluded (there will be some back and forth between you and the seller) and you have a signed purchase contract, it's time to go back to your lender. They will order an appraisal on the property to make sure it is at least worth the loan amount. If the appraisal falls short, you might have to ask the seller to come down more in price, put in a bigger downpayment or kill the deal.
5. Assuming the appraisal comes in OK, the loan should go to final approval. Once final approval is made, you're in the home stretch. Your title company will contact you to arrange the closing date where you will sign the mortgage papers and have the title transferred to your name.
6. Once you sign the papers and the deed and mortgage are recorded at the courthouse, you are now officially a homeowner.
Don't forget to file for the $8,000 first time homebuyer's tax credit if you're a first-time buyer and you have signed contract by 4/30/10 and close by 6/30/10.
You can ask your lender about an FHA 203(k) loan which will provide money to rehabilitate the house.
FSBO Help Resource - Home Staging Champ Helly Duncan - For Sale by Owner Boulder
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