Easy House

Many people believe getting a loan for a home is difficult. Obtaining financing for your first home is much easier than you would think. There are many loans and programs available for first time homeowners. Admittedly numerous ways to minimize the cost of buying a home. Below are four steps that can minimize your out of pocket expenses.

Step 1 CONTACT A REALTOR: A Realtor is FREE! When representing a Buyer, it is the person selling the home that typically pays the Realtor’s fee. The Realtor will recommend quality lenders and can give you an idea about the current state of the market.

Step 2 GET PRE-APPROVED WITH A LENDER: To accomplish this you will need to provide standard documentation (pay stubs, W-2’s, driver’s license, 2 years tax returns, etc.). Lenders typically like to see a credit score of 640 or higher and for you to have $2,000 in the bank. If you don’t have $2,000 in your savings, it may be possible for a relative to “gift” you the money.

Step 3 SUBMIT AN OFFER: Be realistic when viewing homes. If your ultimate goal is to invest in yourself rather than rent, you need to find a home where the owners are willing to pay for your closing costs. This is critical if you are low on cash. A great Realtor will know a couple techniques to increase the likelihood of the seller paying your closing costs.

Step 4 NEGOTIATE REPAIRS: I recommend clients pay for a pest inspection and a home inspection. These inspections will most likely produce numerous findings that need to be addressed. The appraisal report may also include things in the house that need to be fixed. Focus on getting the health and safety items repaired. Sellers are more likely to address these issues.

I am not a lender. I do not know the rules and regulations involved in qualifying a person for a home loan, but I am a Realtor. I know the steps involved in the home buying process and can help you buy a home. I’ve had many clients who bought a home with LESS than $2000 and a 640 credit score. If you want to buy a home, don’t let your uncertainty stop you. Contact a Realtor and get your questions answered. You may be pleasantly surprised.

John Jennings, III

BRE #01982171

John Jennings, III is a licensed Realtor® who works for Mid State Realty in Coalinga, CA. For more articles like this one go to johnjenningsrealtor.com. John can be reached at john@oaktreere.net and (559) 970-4312.

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