My Top 20 First Time Buyer Tips | First Time Home Buyer Advice | First Time Home Buyer

hi this is Shahid a hill with maximum one realty getting you over the hill to home ownership today I'm giving you my top 20 tips that I think all home owners should be using all first-time buyer should be using thank you so much for liking my channel subscribing to my channel I chose 20 because I'm at 20,000 subscribers so I definitely appreciate you I appreciate your comments I try to respond to as many of them as possible sharing my videos and sharing my page let's get right into it number one get an estimate from your lender before you put a contract on a house you want in that estimate your estimated closing cost how much your monthly payment is going to be all of those things so you're fully aware of what you're going to have to pay at closing what your monthly payment will be in full ahead of time because a lot of people that get the pre-qualification oh I'm pre-qualified for you know one hundred and ninety thousand and then they go about shopping but sometimes they forget okay what's my what do I need for closing costs what do I need what's my actual payment going to be and sometimes some lenders automatically give you an estimate when they give you the pre-approval but a lot of lenders don't so you need to ask for that pre-approval at the time that they qualify you it's not that pre-approval asks for the estimate at the time they qualify you number to get three lender quotes do not just get one quote I know what most people say it's gonna hurt my credit they the FICO scoring scoring model allows you to get multiple quotes within a short time period for the same financing type so all mortgage lenders when they pull your credit they're pulling your credit under one finance type don't know what the number is but say they say the number is thirty they're all putting in three so the FICO scoring model knows that you're applying for three different mortgages so it only impacts your credit once you can double check that you can look at it what I recommend is that you do it within 14 days you'll find various things that might say 30 days but 14 days is to be on the safe side I would say do everything within 14 days so verify that but definitely get three quotes so then you know who's giving you the best rate and the best terms for your loan don't just go with the first quote that you're given and you have no idea is you know could I've gotten a better interest rate or lower fees somewhere else number three if you are you're a buyer you need representation don't go with the listing agent or the Builder make sure somebody is representing your best interest especially as the first time homebuyer that's able to guide you through the process whether you're doing new construction or resale have your own agent representing you is that no cost to you have a video I think what explains that best is probably new construction video I kind of talked about why you should have your own agent all right number four there are only four loan types so I want to make that very clear when you're applying for for a mortgage or the you're either applying for an FHA loan and I have the FHA loan video a conventional loan a USDA loan or a VA loan there are only four types of loans now in like FHA there might be different programs that a lender might have that fall under FHA or that fall under conventional but there are only four loan types and usually you can take away two of those types because VA is for veterans and their spouse spouses or USDA is in rural areas so most people are qualifying for either FHA loans or conventional financing all right number five owner occupancy so most mortgages you're going to get the best rates and the lowest downpayment if you're going to owner occupy that home so you are going to actually move into that house and how do they know you're going to move into that house generally because you sign saying that you are going to move into the house and also they know you have a job that's very close to where the location of the house is so for example if you are living in Arizona you're trying to buy a house in Texas and you don't have a job yet in Texas that's not owner occupancy unless you couldn't prove that you are a remote worker which a lot of people have moved to virtual if you get some kind of verification from your employer that you work remotely then that's possible but a lot of time when you're moving out of state that you're not considered an owner-occupant and so you have a job in the state you're moving to that's how they know your intention to move to that state because you're employed in that state and that's generally how they verify it now you can still you can purchase a property anywhere but some of the things you're going to find are is gonna be a much higher down payment for a non owner-occupied mortgage and probably a little bit higher interest rate as well so that's why first-time homebuyers if you're intending to buy in another state you just think about how you're going to get employment first in that state or of you are virtual worker that you're going to be able to verify that with your employer verify with the mortgage lender number six student loans if you have student loans they will impact in some way or another you are debt to income ratio so you need to make sure that if you're not on a plan that allows you to pay off in full with your loan with your current payment so say you're on a ten year standard payment plan they'll generally take that payment but a lot of people are on like income based plans and they are not going to take your income based payment necessarily depending on your loan type there's a video about that so you want to if you're on if you're not paying your monthly payments in full you're in some kind of modify payment plan that could affect your ability to qualify because the lender may look at that and say well if it came out of one of those plans would that person still be able to pay their mortgage so just think about that with student loans and work that through with your lender prior don't wait till the last minute and then be surprised that you're not able to qualify on your student loans alright number seven there are two what I'm finding is though if you're looking for mortgage options that are very low down payment one would be FHA FHA is 3.5% another one would be that's conventional is the conventional home ready mortgage if you qualify so home ready mortgage is a conventional loan product that allows you to put 3% down there are some 100% financing options there not as many um you know everywhere but you can't find some 100% options but usually what I find is usually a higher interest rate if you find something something at 100% financing all right number eight know all three of your credit scores there are three credit scores Experian TransUnion and Equifax you need to know all three of those because the lender is going to look at the middle score so when they're evaluating your creditworthiness they're generally going to look at that middle score so make sure you know your three credit scores number nine utility payments do not count into your DTI I did this video about can you afford a house and that's like probably the number one question I get when I'm trying to show people how to calculate their debt to income ratio they're asking me what about my my utility payments or what about my rent or what about my cell phone whatever that is they're not included because you didn't borrow that money so it's not considered debt so when you're looking to calculate your debt to income ratio you only include instances in which you borrowed money okay that's number nine number ten do a budget do a budget with your spouse do a budget by yourself and budget out how you're spending your money especially as you get into trying to save for home ownership you should be living on a budget a written budget every month number eleven buy a house before you buy a car let me say they buy a house before you finance a car I mean you could have a car and you pay cash for it but a lot of times people are buying very expensive cars and then they can't afford their house because their payment their car payment is too high so car payments or cars are depreciating assets they're gonna go down in value as soon as you start driving them so it's if you're really trying to build wealth you want to prioritize a house if you're going to buy one over a car so and then be very mindful if you have to finance a car I got my first my last few cars I got one from my dad that he was about to I'm he didn't one have to car payment so I got it from him then I got another car for I paid cash for it five thousand dollars after that car stopped working so there find a way to you know get a car cash if possible and if not get the lowest lowest payment you can find because when you're trying to calculate your debt to income ratio if you have student loans and a car payment there's not a lot of room left for a mortgage so the less that you have the better okay number 12 file your taxes you'll be surprised how many people especially first-time homebuyers I work with that have not filed their most recent tax returns I didn't even realize this until I started working with a lot of first-time homebuyers a lot of people don't father taxes and when their time it's time for them to when it's time for them to get their mortgage approved they're you know scrambling to get their taxes together follow your taxes particularly if you owe and then save all of your paperwork they're going to look for the last two years if you owed in the last two years you make payments or in a payment plan keep all of your paperwork your IRS tax transcripts the IRS will hold you up from closing on your house because they're all they the lender may ask for something they definitely always want verification that if you owed you actually paid what you owed that comes up a lot with where a lot of my clients and the underwriting process have to verify that if their tax returns said that they owe even like $30.00 $500 the lender generally wants verification that those taxes are paid so make sure they're following your taxes if you're self-employed need to talk to your account or I would have a professional do my taxes when I'm preparing to buy a house because you're going to need two years of tax returns showing your income in order to qualify for a house especially for anybody but self-employed people really need good documentation of their income all right number thirteen this is another tip if you're in college and you want to buy a house right out of college your college generally counts as two years of employment so say you went to school for nursing you get your first job and you're like oh do I have two years on the job usually not especially for teachers any kind of stable employment if you go straight from college to straight from college to your job you do have to have a job but your college counts for the two years of employment that is typically required by mortgage lenders number fourteen always get a home inspection never buy a house without a home inspection number fifteen always get title insurance title insurance ensures that if the title for some reason is not valid at any point after you buy it the title insurance will protect your interest in the home that you buy and quote I get a closing attorney video here that talks about the importance of getting title insurance number 16 you choose your attorney a lot of people don't realize this but especially on the buyer side most of the time especially if you're buying resale like buying a resale home you get to choose the closing attorney you want to use so in closing attorneys may have various prices so go ahead and choose one choose one that doesn't have really high fees because that will cut down on some of your closing costs but you generally get to pick your closing attorney or your title company when they're closing so ask your Realtor about that and have them give you some recommendations usually with new construction if it's a large builder they make you you use their closing attorney or they're recommended or preferred closing attorney in order to get the incentives all right number 17 renting houses place I don't think people should be really long long long-term predators if they plan on building wealth but renting has its place if you're not in a stable place I did a video called should I rent or should I buy so watch that video rinsing it at all times is not bad okay so rinsing does have its place you may be in a place of transition you may be in a place of savings but rinse rinsing some place gives you some time to save and establish before you buy a house number eighteen real estate is long-term unless year so either a homeowner that you're buying for yourself and then over the long term more than likely that home is going to increase in value or you're an investor that wants a quick flip and that's that's a different way to buy property so you need to see okay am I and a homeowner that's gonna build over the long term through real estate or a mine investor that wants a quick flip because the way you're going to approach buying is going to be very different typically typically at least right now on this channel I'm talking about people that want to live in their house for at least five years or more number 19 is naca I did a whole video on naca because everybody asked me about it it's a real program people buy their houses through them it is a process but it's one of the mortgage process or gages mortgage programs for first time it's not even first-time homebuyers you just cannot currently own a home but naca has its highs and lows that's why I did my video like this there's some good things about nocta there's some bad things about naca but it does give you an opportunity to get a mortgage with no down payment and no closing costs and no PMI so those things if you're trying to find an affordable option then akka may be an option for you and you can read the comments some are good some are bad about the program alright number 20 there's really only three things that mortgages that you need to get a mortgage income credit and low debt or not or your debt is going to be evaluated so depending on your debt-to-income remember that that's an income ratio it depends on what kind of house somebody will lender will qualify you for that's very important one of the things that people I think needs to go ahead and calculate because a lot of people ask me why I make $40,000 a year cannot qualify for a house yeah you can qualify for our house probably but if your debt is yep if you have debt that's more than sixty percent of your income you won't be able to qualify because where does that mortgage fit in so you have to those three things you need to evaluate for yourself you'd evaluate your income your debt and your credit and typically once you have all of those in line you should be able to qualify for a mortgage and then I must number twenty already so I'm gonna give you a bonus number twenty one when you qualify for a mortgage make sure that through that mortgage process it typically takes about thirty days maybe forty days to close a loan make sure you're in the the same or better financial position until you close for example when you first did the application you were employed hopefully you were employed you had a certain amount of savings you had a credit score all of those things you had a certain amount of debt and if they approved you based on you know everything they saw during the pre-approval process you need to make sure during that process that nothing changes so you don't go out and buy cars you don't go finance your new refrigerator your new furniture you don't um you don't do anything that's going to increase your debt you want to stay on your job preferably the same job because if you change employment then they have to read arif I all of your employment so you want to be very stable you want to be the same way they saw you on the application you want to be that same way or better when you're about to close because I've seen people who are working and then you know especially in this environment they get furlough or something happens and they can't qualify or they go and buy something or charge something now they're not qualified so you want to make sure that you stay very consistent financially during the process thank you so much I hope these 20 tips were helpful please watch my videos um if you want more details thank you so much for subscribing to my page sharing my videos I really appreciate it until next time I hope you learned a lot and that you confidently buy your first home thank you so much bye bye

Channel: Shaheedah Hill

Views: 309,643

Keywords: Shaheedah Hill, Atlanta real estate, Advice for first time buyers, first time buyer tips, First time home buyers, First time home buyer, First time home buyer advice, how to buy a house, first time home buyer tips, first time home buyers tips and advice, first time home buyer loan, buying a home for the first time, first time homebuyer, tips for first time home buyers, buying a home, first time home buyer programs, buying a house for the first time

Id: ymGUSt9vpY4

Length: 18min 9sec (1089 seconds)

Published: Thu Jul 02 2020