Buying a Home Start To Finish As a First Time Home Buyer - First Time Home Buyer Tips and Advice 🏠

give you an overview of the home buying process from start to finish because the number one thing that people say to me is i don't know what i'm doing i don't know what i'm supposed to do next like what am i supposed to do so i'm hoping this video can help with that and i am going to do this i've been struggling like do i do it like when i buy a house you know as a buyer what i do or do i do the overview i'm not sure so it might go in and out please forgive me in advance okay here we go so if i'm buying a house the number one thing i do is i get pre-approved yes even me as a lender i get pre-approved before i go shopping i have another lender look at all of my stuff to make sure that i am good to go i didn't miss anything because i have to tell you guys it's really hard when it's your own situation to look at it um without bias right because you look at your own situation and you're like oh well this or that you really want to have that third party look at your situation to see if there's something you missed and also if you're not a lender our guidelines are crazy like crazy the stuff like and people are like that doesn't make sense i'm like yeah welcome to mortgages you know everything is based off worst case so you really want to make sure that you get that pre-approval before you even talk to a realtor don't even talk to them yet okay here's the thing realtors are commissioned sales people they don't get paid unless you can close and any of the good realtors that i know they're going to require a pre-approval letter before they start showing you houses because a it's the way they can do their job the best but b they're commissioned employees like you don't want to go if you're only going to get paid if someone can close like you're not going to go out with people who aren't qualified you're not unless you have no business like literally like no business so you know if someone's willing to just hop in a car with you without making sure lenders vetted you i would actually be a little concerned about that and i know some realtors do that because they're like oh i don't want to lose the client or i don't want to you know upset anyone you're not losing a client or upsetting someone the bottom line is is that if you guys go looking for houses with a realtor and you like one i haven't seen anywhere where they're letting you do an offer without a letter from a lender with a pre-approval in a hot market why would they even touch your offer you have nothing to verify that what you're saying is accurate true or even possible the thing about having a pre-approval is it backs up your offer it's saying yeah jane can totally buy this house at xyz down i have verified this i am a professional licensed lender who has verified that jane qualifies okay looking at houses without that is a waste of time and we see it a lot a lot i'll get calls at seven o'clock on saturday and someone will be like oh hey i just saw a house and i need a letter can you get me a letter and i'm like have we pre-approved you before no no can you do that no nope no i can't sorry no seven o'clock on a saturday i'm you should have done your homework a week before and that's the thing like good lenders like we want to do our job correctly and the only way we can do our job correctly is if we verify all your information and that takes time it's not something done in a 20 minutes on a saturday night also just so you guys know lenders work crazy hours right now like i'm working 15 to 16 hours during the work during the work days right i don't want to talk to anyone on saturday that wants to get pre-qualified i'm gonna be like you know what good luck go find another lender like you didn't have the decency or the respect to the realtor or myself to do this before you went shopping good luck bye and i know that seems harsh but seriously guys like you gotta give lenders time you gotta and you should respect a realtor enough to realize hey look if this person only gets paid if i can close i should be a decent human being and make sure i can actually close i mean i know that sounds harsh but it's true if you're just going out with a realtor without getting pre-approved you could just be wasting their time and whether you think realtors are scum or you think they're wonderful it's not nice and it's not cool so get pre-approved okay so i would get pre-approved first the next thing i would do is i would select a realtor now in my business i deal with realtors all all day long that's all i do and i have to tell you there's not one realtor that i would use for every type of purchase i have realtors that i know that are super good at investment properties and i would use them for that but i wouldn't use them for my primary and then i have some where if i was going to sell my primary i would use them but i would definitely not use them to buy an investment property there are different realtors that specialize in different things so it's very important to be mindful of who you choose ideally you want someone who is very knowledgeable in the market who has a good pleasant personality you know if someone's rude to you they're probably rude to the other realtors and what i can tell you is like you as a client can have your offer not accepted because people don't want to work with your realtor it's a thing it's totally a thing and even if you offer the most if that person has a terrible disposition or is known in the industry or locally to be horrible to work with people are going to look at your offer last so it's very important that you pick someone you know and i usually use the metric of like someone you'd want to spend time with someone who's ethical what i do see is that in certain markets realtors get reputations quick and if they're known to pull fast ones um you know like wait till the day before closing and then negotiate or threaten to cancel they get a reputation and you don't want to be a client who's not getting their offers accepted because their realtor has a bad reputation now we do see this more in you know smaller towns in larger cities you're not going to see it as much unless it's someone who is doing it constantly and has burnt out a lot of the top producers so the realtor you pick is very important the other thing to note about picking a realtor is you want to make sure that they specialize in what you're looking for so as i was saying with the investment or primary but beyond that price point yeah so if for instance you're looking at a million dollar house and you're working with a realtor that normally sells 200 000 houses they're not gonna have the best understanding of this market just like if you're working with a realtor that sells million dollar houses and you're looking at a 200 000 house they're not going to be an expert in that area and i'm sure i'm going to get at least 10 comments from realtors saying we can sell anything and sure i agree with you however you know if you look at someone's last 20 sales and they're all in a certain price point i would argue they're an expert in that price point okay so really pay attention to who you're working with um okay so you've selected your realtor i selected my realtor now i'm gonna go home shopping so the market is crazy competitive right now so i you know don't be shocked if the realtor's asking you to write an offer the same day you see a property the houses across the country right now are moving super fast and you have to be able to react really quickly so you want to make sure that you're mentally prepared when you go out shopping that if you like something you write an offer on it because there's a very good chance that by tomorrow that house will be gone and that's not a realtor trying to pressure you or steamroll you it's just the market right and look talk to your realtor about the local market there are some that are a little bit slower like you could have a couple days you know stuff stays on the market longer great but there are some where literally the stuff is gone within two hours yeah it's wild right now so talk to your realtor about that just because they're trying to get you to write an offer the same day does not mean they're pushy or bad or trying to take advantage of you it may just be the market you're in okay now the next thing is um if i'm writing an offer on a house i'm always going to want to know you know if a realtor is telling me to to offer over asking i'm going to be asking to look at some comps to make sure it's going to appraise and if it's not going to appraise i'm going to be talking to my lender and looking at my finances to see do i want to bridge the difference so let's say i'm buying a house for 500 000 and there's ten offers on it so i'm uh my realtor saying jen you need to offer 589 589 that's such a random number where are you getting this from right and if they show me comps and they're like look you know there's houses like this they were listed at 500 they're selling at 590 you know or the last house just like this just sold at 5.75 so this should go up higher you know great but if they're just coming up with a random number out of a hat i would be a little hesitant on that because the random numbers out of a hat unless you have a ton of cash you have a very good chance of even if you get your offer accepted not being able to close because if this random number you know the appraisal doesn't come in at that and you don't have the money to bridge the difference all you've done is wasted money on appraisals and inspections so you want to have a conversation with your realtor as to okay cool where are you getting this number from do you know is it likely to appraise should i be budgeting that i'm gonna have to bring in money what's the deal okay now beyond that when you're writing the contract with the realtor ask them to go through it with you and if they're like oh just sign it that's not good you know you need to understand the contingencies in the contract so there's certain and it depends on state there's certain triggers in the contract like you know maybe you have to have all your inspections done and you have to agree to the condition of the property within 10 days you know these are the things you need to know so that on your end you can make appropriate movements you know okay so let's say your contract got accepted congratulations you're gonna want to immediately send it to the lender so if i'm buying a house i send it to the lender and i call the lender and i annoy them i'm the worst i just you guys know i am the worst i will call them until they confirm they have it and you know i would say if people do that to me it drives me nuts but do it i'm fine with it it's fine and the reason is you just want to make sure they got your contract like i know with my email i read my email and i have two assistants reading it now and we're looking for contracts we're like contract hunters um but if you have a loan officer who maybe doesn't have a bigger team maybe they're the amount of loans they're doing is growing really quick they could miss it yeah or maybe they never got it maybe someone typed their email in wrong i've had that i've had it where people have been like you didn't get the contract and i'm like no i'm like what email did you send it to and they've spelled my last name wrong or you know they sent it to a different lender there's all these different factors so you want to make sure that your lender gets the contract day one day one do not assume your realtor will will get it to them or call them or notify them don't assume it i would probably say 4 out of 10 realtors notify us when i went to clients in contract i'm usually finding out from the clients first seriously you know i get it where like you know three days have passed oh here jennifer here's the contract great i just lost three days lenders need the contract day one because there's so much we have to do and in order to meet your timelines we need to go running day one okay so you're in contract you've notified your lender the lender you want to confirm so i always order the appraisal on day one the only time i can't do that is with fha because you have to have signed your disclosures before i can order your appraisal so you want to ask your lender though or you want to say hey can you order the appraisal on this today do i need an appraisal can you order it today right because some lenders they don't order the appraisal day one they don't order the appraisal day five they wait two weeks three weeks to order the appraisal so it really varies based on the lender that you're working with so you want to say hey can you order my appraisal now now and if you're like well why do you care if it's ordered the first week well if i'm buying a house the biggest thing that's going to blow it up is if it doesn't appraise yeah if it doesn't appraise you know at certain times i may put in more money but personally i'm not really one of those people that wants to pay over the appraised value i feel like appraisers are skilled you know they're looking at what's realistic for the market they're looking at comparable sales you know i i feel like what they're giving is a fair value and i don't like paying over that you know and i know in this market you're kind of a lot of people are being forced to pay over so you have to know if you're comfortable with that or not so i always want the appraisal as quickly as possible because of the value but also because the appraisal can have bombs in it yes bombs um loan bombs so like for instance if an appraiser goes through a house and he says um mold on back bedroom wall oh goodness sakes well guess what he said the world mold any lender is going to call out a mold inspection now yeah or he could say you know the deck is in not good condition recommend pest inspection so even if you guys don't want a pest inspection if an appraiser calls it out i as the lender need it yeah and then that opens up a whole new can of worms so a lot of times people are like well the seller's selling the property as is that's great that the seller wants to sell the property as is but as a lender i don't care oh that was me hold on let me take a water break maybe i'll be nicer afterwards nope nope i'm not um okay we don't care it's great that the seller wants to sell the house as is however if an appraiser highlights to us that there's an issue with the property we have a uh we have to look at it we can't be like oh no no like the appraiser said there was mold on the ceiling but it's cool the sellers as is no no no guys we're investing with you the lender who's doing the bank excuse me the mortgage right we're the lender we're giving you the mortgage well guess what that mortgage is based on you but it's also based on the property so if the property is in a condition which makes it a risk we're not going to invest in it nope nope so appraisals can have bombs and are there ways around them sure you know if the appraiser saw mold and you get a mold inspection and it's nothing and they paid 200 to scrape it and treat it cool no problem if they call it a pest report and the pest report comes in clean cool no problem if they call it a pest report and there's forty thousand dollars in section one repairs not cool gonna be a problem so i like getting the appraisal as quickly as possible to offset that now personally as well i want my loan to underwriting within four business days yeah i want to be even though i've worked with the lender right and if this is me i'm looking at it another lender's looking at it and i want it signed off by the underwriter i just it's the only way i'm going to sleep at night and if you guys are anxious or first-time homebuyers i would recommend you get all your documents to the processor as quickly as possible and you really push your lender to get your file into underwriting as quickly as possible so with my team we're always like i want it in underwriting within five business days if it's not i want you harassing the client because the thing is is that your pre-approval is great but it's not 100 real until that underwriter signs it off so um i always want to get my file to underwriting as quickly as possible because that also lets me know what i need to work on because the underwriter often will call out things that we don't have originally like i may think that um you know some of the stuff that i provided makes sense but they may ask for a letter of explanation like hey why um why does your rental property suddenly have so many expenses or um i don't know there's eight million reasons an underwriter is going to want a letter of explanation so i always want to know what we're missing up front and sometimes it can be stuff like oh we need one more bank statement or please provide most recent pay stub because of covid i would tell you guys to just stack your pay stubs the entire time we're going to ask for them throughout the entire process now if you're retired this doesn't apply to you if you're military yeah i'm still going to want those lesses but just know a lender is going to constantly be asking for updates on income because of what we saw with the covid job loss in 2020 so okay so you want to get your file to underwriting within the first five days so the way you guys do that is you you push your lender a little bit but you also provide all the documents that they need as quickly as possible okay and you're also going to confirm with your lender when they're going to order that appraisal now after you confirm with the lender on the appraisal you're going to call and get a homeowner's insurance quote yes you have to do that that's like day one day two stuff get that homeowners insurance quote as quickly as possible and the reason is i see homeowners insurance quotes blow up loans yes yes so you may think oh it's probably gonna be like 50 a month but the house actually is in a flood zone or something else and it's 400 a month yeah i have seen on a 200 000 house insurance that is 700 a month because of the location of the house uh-huh yeah and that's something that can blow up the loan so if you wait till the end of the loan to get the homeowner's insurance quote even if i've already run it through underwriting and have an approval that quote changes everything so i can go from approved to denied because of a homeowner's insurance quote so you want that quote in there first time it goes to underwriting okay seriously i see this stuff go sideways all the time and luckily at this point like i think so many of our clients come from youtube they know that i'm going to be asking about that homeowners insurance quote um but if you're not working with me and you're working with another lender make sure you get that lend to the lender as quickly as possible okay now on the homeowners insurance front one more thing figure out who it is within the first two days too because from the lender perspective what's really a problem is if we're getting ready to close and then you go wait i don't want to use that insurance company and we're like oh god no and the reason is okay we now have to get a new insurance binder from the new insurance we have to update your debt to income on certain loans we might have to take it back to the underwriter for approval you know there's a lot that goes into it it's not easy to just change numbers in a transaction so you really want to be mindful of that okay so while your loan's been underwritten you want to make sure that you're working with your realtor to get all the inspections so pest inspection homeowners inspection if there's a well yeah get a well inspection if there's a septic yeah definitely get a septic inspection your realtor is the person that helps you with all of that so the lender does the appraisal all other inspections the realtors should be guiding you on like oh this is who i use or you know use who you want whatever and making sure that it fits the timeline of the contract because the contracts have set periods for when you have to release inspections by okay so this is something you're going to want to be on day one day two two like with all of these transactions the more proactive you are the first week the better the rest of the thing goes yeah because if you're day 15 and you're like oh i need a pest you know and especially some of these inspectors they're booked up with how crazy the market is it could be three weeks before you get an inspector out of there out there and at that point your realtor may have to do an addendum to the contract to extend the inspection contingencies so you really want to be all over that now with the inspections do not send any inspections to the lender unless we ask for it yes don't send us stuff unless we ask for it you know there's certain loans when we where we require a pest and there's certain loans where we don't if it's a loan where i don't require a pest i really don't want it because anything you send to me i have to send to an underwriter anything the underwriters looks at they have to go through with a fine-tooth comb so do not send inspections to your lender unless you want an underwriter to review them and put a ton of conditions on the loan maybe they won't maybe they won't maybe the house is perfect but don't send us stuff we don't need same thing goes for documents don't send us documents you think might be helpful um the reason is is because sometimes that just adds to it it makes us have to give you more conditions because you're bringing stuff that we're like wait why are they bringing this to us what do we not know you know give lenders what they ask for don't just throw everything at them okay so your loan went to underwriting you got your inspections back you've reviewed your inspections with your realtor you've determined if you're going to try to negotiate for anything with the seller your loans come back from underwriting so when it comes back from underwriting you're usually going to have a couple things that underwriter wants because it seems like no matter what they come up with something and then it's going to go back to underwriting for final sign off so when you're clear to close is where you can go okay now that big sign does not mean that you can open up any debt do not change jobs do not you know buy a car during any of this process do not do any of that do not stop paying your bills right don't stop paying your rent don't get into a fight with your landlord you know still keep it clean but clear to close is when you know you're close to the finish line so once you're clear to close we order loan docs and it's going to differ from lender to lender how long that the rest of this takes so in my world from clear to close to loan docs is usually about two days but we have to time it with when your closing is sometimes we'll be clear to close like 10 20 days before you're closing especially if you have a longer escrow so just because you're clear to close doesn't mean you get to start being wild with your credit so once we have the loan documents out that is when we balance the final cd the final cd is when you'll know the exact amount of money to come in with okay so once you come in to sign you sign in certain states you'll sign your fund the next day and record the next day and get keys in other states you sign and get the keys the same day so it really depends state to state your realtor is a great guide on that if you're like hey you know when i sign is that when i get keys you know they will tell you yes or no or what to be prepared for but the key thing through all of this through all of this is you want to get the heavy lifting done as quickly as possible you need to be glued to your email because the realtors are going to be sending you documents to sign title and escrow companies are going to be sending you documents to sign we're going to be sending you documents to sign everything is electronic now so you really need to make sure that you're tied in to email also if a lender calls you call them back uh seriously call them back like this shouldn't be you know the worst transactions are the one where my team's like he hasn't called back and i'm like how many times have you called him four do you want the house or do you not want the house if you want the house you need to give the lender what they need you need to call us back if the realtor is calling to find out something like hey can we do an inspection on tuesday and you're not calling back it's a problem you have to be really tied in emotionally vested and available throughout the process i cannot i cannot stress that enough and if you're gonna go on vacation please tell us please tell us because my favorite is when you know we're in the middle of underwriting and someone's like oh the borrower won't be back for three weeks so they'll come to the signing and i'm like oh my god like i could they have told us like we would have done this quicker and differently and try to get clear to close before they go on vacation because the last thing we want to do is bother you on vacation and be like hey i really need that pay stub uh can you please get your bank statement or what's the deal with that 20 000 deposit we don't want to do that and then sometimes people are going on vacation where they have no wi-fi and just because you were pre-approved doesn't mean you don't have to go through the loan process so really when you're buying a house be emotionally checked in we're going to need you to be it is the path to success so i hope this video has been helpful i know it was a little bit long i'm sure i missed stuff anything you guys have questions about or you think i missed or you're like wait can you expand on this please let me know

Channel: Jennifer Beeston

Views: 74,884

Keywords: help buying a home, jennifer beeston, top mortgage originators, Guaranteed rate, mortgage lending, first time home buyer, real estate, buying a home, first time home buyers, first time home buyer tips, buying a house, first time home buyer advice, first time home buyers tips and advice, first time home buyer loan, how to buy a house, first time home buyer programs, tips for first time home buyers, buying a home for the first time, buying a house for the first time

Id: iOeDTc_ZUJ4

Length: 26min 15sec (1575 seconds)

Published: Fri Mar 05 2021