You woke up this morning, you have the activity of your limbs, and you are in your right mind. You want to start a new phase of your life, do it! — You want to start a new relationship, do it! — You want to buy property, then do it! Why not invest in real estate, there is no maximum age limit. Make up your mind to do whatever it is that will make you happy
Buying Your First House?
It’s not unusual to buy your first home at a time when other people our age are selling theirs — others may either be buying another home, moving into a retirement community, or investing in other property for income.
If you are new to the home buying process, let me shed a little light on this subject. Your first inclination may be to stop at a few open houses, that you probably don’t qualify for, or go online and enjoy looking at properties without leaving home.
There is nothing wrong with that, however, this could cause you to have unrealistic expectations when you find out how much house you qualify for. For example — you’ve been looking at this 3 bedrooms/2 baths in Pasadena, near the Rose Bowl. You get pre qualified for a loan and find out your income can get you a house for no more than $600k and the house you’ve been eyeing is $899k.
I don’t want a scenario like that to discourage you from pursuing your desire.
Ready, Set, Let’s Get Started
So as not to waste the time of all involved in your real estate transaction, getting pre qualified before the house hunt is a must. Most agents and sellers will not entertain any offers where the buyer is not pre qualified.
To get a mortgage loan, most potential buyers will go with a bank, a mortgage loan broker, or mortgage company. Since at this point, you may be a serious buyer, (or just curious) your loan representative will take your loan application where you will provide your income and debts. The lender will run your credit after you have paid the fee for the credit check.
Your credit score will either qualify you for that low interest rate you heard advertised, or you may qualify for a special program for people with less than perfect credit. I actually simplified that explanation.
There are various loan programs available, depending on your situation. I won’t go indepth at this point, that information will be explained when you’re actually working with a lender.
As long as you have the income necessary to support a mortgage, your broker or loan representative will probably be able to put you in a loan.
Hire a Real Estate Agent or Don’t
Real Estate Agents who list homes for sale for Sellers, usually charge 6% of the selling price for their services. The Buyer rarely pays the commission fee, even though Buyers have their own agents working for them. The 6% commission is always negotiable. Since we are mainly focused on buying, the commission is pretty much a non issue for the Buyer.
Without going into the relationship ethics between the Buyer and Agent, I will simply state this: find an Agent who will represent and work for YOU!
You don’t have to use an Agent, but you may want to. And why wouldn’t you use an Agent and their expertise, it’s not costing you.
Hey Ms Buyer, It’s Gettin Real!
Of course you could be buying your home along with your husband. (Classy Senior Sisters speaks to married as well as single ladies).
Here comes the fun part, or at least I think it’s fun….and that is looking for and choosing your home. Important factors to consider in choosing your home:
- Keep your list of must haves, but be willing to compromise
- Is being near a school a plus or minus?
- Can you envision future projects for the house?
- Do you need to be close to shopping or freeway?
- Do all the light switches work?
- Check the water pressure by flushing the toilet and running the shower at the same time.
- Will the master bedroom accommodate your needs?
- Is there enough storage, can additional storage be easily added?
- Is the house near wild animals, and is that okay with you? (Where I live, there are bears, coyotes, dears, mountain lions, and I don’t know what else). Occasionally these animals come down and visit unannounced.
Don’t worry so much about the current aesthetics of the house. Wallpaper can be removed, paint color can be changed, floors can be changed or carpeted.
Are You Ready to Get Started?
Keep in mind that the details and questions you have can be provided by your Lender and your Real Estate Agent.
You’re reading this post which means you have an interest in transitioning to homeownership. I want to state this again: as long as you have the income, you will probably be able to buy a home with one of the special programs for people with low credit scores, however, if you prefer to bring your credit back to a healthy standard, I may be able to help.
I’d be happy to refer you to Financial Education Services (FES), that not only provides credit restoration, but also includes a system for paying down debts faster, wills and trust, identity protection, and more. Look them up online. I am not an affiliate with this company.
You can always fix your credit yourself. Watch Dave Ramsey on youtube, his website is daveramsey.com, he wants you to get out of debt and stay debt free; thebudgetnista.com has a host of good information, and Danny Ramos, Mortgage Broker at Western Home Loans in Pasadena, Ca.
After you get your credit straight, Gotham Realty, Pasadena can assist you from start to finish in purchasing your home or investment. I’m here for your convenience, but ultimately your service provider is your choice.
Leave me a comment with your contact information or just leave a comment about your experience.
Be Bless Everyone and Be a Blessing
Patti B, the Good Steward