Top 10 Links to Help First-Time Home Buyers Buy a New Home
I lived in Los Angeles for 12 years paying over $150,000 in rent. That was money that I was never going to get back. Had I owned a home, I would have been able to roll that $150,000 of equity into a new purchase. My fiancée and finally realized that renting was the worse thing that we could to do ourselves financially, so we committed ourselves to purchasing a new home. In order to determine how much we could afford to spend, where we could afford to spend it and how much we would need as a down payment, we had to scour the web to educate ourselves about the entire home buying process from mortgage basics to appraisal estimates. Below are the 10 most important links we found to be of the most significance to first-time home buyers in assisting with the search of a first home.
Mortgage Basics
If you’ve never bought a home before, you should really start here. There are many documents you will need to compile during the process to close. Also, there are many questions that you should be asking potential lenders and brokers throughout the process. For example, if you’re self-employed and your gross revenue is far less than your adjusted gross on your taxes, for half a point to one point more on your interest rate, you can get a stated loan with little to no documentation. If you do not ask for this first from a lender, they will not be allowed to offer you a stated loan once they have seen your financial information (i.e.: taxes, bank statements, etc.). In addition, unless you are already a home buying expert, I 100% recommend that you use a Real Estate Buyer’s Agent, even if it is only to negotiate. It cost you nothing. The commission on the sale will be split between your buyer’s agent and the seller’s agent.
bankrate.com/brm/green/mtg/basics-toc.asp
Buy Your Credit Score
You are completely in the dark if you don’t know all 3 of your Fico Scores. There are other credit scoring systems, but Fico is the most popular. This is mandatory.
myfico.com
Free Credit Report
You can get your credit report for free once a year from all three credit reporting agencies. There are many websites that will make it sound like you can get your report for free, but they will make you sign up for a trial service. This site is the only true free site. If you bought your 3 Fico Scores, you will not need to visit this site.
annualcreditreport.com
Online Brokers
You can shop around online for a loan from an Online Discount Mortgage Broker. If you do your entire mortgage shopping within 2 weeks, it will have the least impact on your credit score, but in general, if a bank checks your credit score for a mortgage, it’s not supposed to impact your credit score. To get the best rate, and sometimes even your loan to close, you will need all the help you can get. Working with a broker, even several, will create the greatest chance of getting the rate, down payment or a loan that will close.
eloan.com
lendingtree.com
Raw Statistics About Most Cities
“Where should you live,” is probably the most important question you could ask yourself. The cost of housing, culture and traffic are all things that could impact your decisions. These links provide raw statistics about many of the factors that could influence your decision.
bestplaces.net/Default.aspx
money.cnn.com/magazines/moneymag/bplive/2007/index.html
Search for Homes, Condos, Real Estate
These websites are extremely helpful in indentifying potential homes. The first two have a customizable search engine, which allows you to add in anything from wood floors to a jetted tub in your search.
ziprealty.com
realtor.com
newhomeguide.com
Appraisal Estimates
Last, but not least, once you have identified a list of prospective homes to buy, you can get an unofficial appraisal, as well as the previous year’s tax appraisal, to help you come up with an offer price.
zillow.com
Good hunting.
