GUIDE FOR THE FIRST TIME BUYER

by IL Mortgage Experts on October 26, 2009

real estate

When anyone is purchasing a new home for the first time, you must make a list of the different features and factors that you, in particular, want in a home, and by putting all of these in a list will indicate, at some point, what kind of home or structure you will be able to buy like size, amenities, location, appliances, and other modern conveniences needed in the general area of the home, like schools, medical facilities, any recreational needs, parks, tennis courts, shopping centers, drug stores, auto mechanics, etc..So when Purchasing a new Home for the first time be sure you take into consideration the following:

You must ask yourself:  Is the area I am looking at going to be safe for my children and is it in a safe neighborhood and is that floor plan expandable, is the garage big enough and is there room for a pool in the back yard eventually, and what kind of sewer system does the house have, and what about fireplaces, and am I close enough to be able to walk to the beach or go fishing on a spur of the minute or is that master bedroom really big enough or what about the master bath, is there only a shower in the master bath or is there both a shower and tub or can I add a tub later and what about traffic in the morning and evening  and what about traffic noise, or is the house big enough for entertaining and do I have a yard that I will have to maintain, and if I don’t want to maintain it myself, what is the cost for a gardener each month.

These are a few of the important types of questions that you need to think about way before you start shopping for a new home, because even the most modern and up to date home communities today do not offer all of the conveniences or the amenities that many people think they are getting when buying a new home and this is true even in some of the most upper end gated custom home communities, where there are problems that many people do not anticipate before they make a decision to buy a home there.
One must also be aware of warranties on the building itself, and consider the warranties on the appliances, and what if you knock out a wall next year, how will that affect your building warranty.

What about insurance policies that have be in place, by law, when buying a new home, and what if something happens to you, who will make the payments and do the needed upkeep on the property, and do you really want a single family house, or will a condo, or town home fit your lifestyle better, because today’s modern condo complexes are quiet, secure, full of amenities, and there is no yard work required, or other maintenance costs like with a single family house.

Housing options in most cities are many, but making a decision on which place to buy can be very time consuming and complicated, as modern America has housing opportunities like no other country in the world and it can be easy getting into a place and then after a short time, realizing that this wasn’t the right home for you to begin with, and this will create many problems in your life.

If any problems start popping up like poor drainage, poor building construction, or cheap appliances that crash in a few months, or when it rains all the water runs into the garage, etc., what do you do then.

Buying a new home is a giant step and the best way of ‘buying a new home for the first time’ is being prepared and the best way of being prepared is to start writing everything down that you are looking for, and what you are not looking for.

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First Time Homebuying with just 3.5% down with an FHA Loan

by IL Mortgage Experts on October 19, 2009

Now that home prices have leveled in many parts of the country, many first time homebuyers are looking for creative ways to move into the home of their dreams.   FHA, the Federal Housing Administration, is making it easier for many to purchase with low down payment requirements.The enabled many to get the ,000 tax credit currently in place for first time home buyers.    What is FHA doing to make home buying so affordable?

  

For starters, you can finance a new home with very little down.   3.Exactly 3.5% of the purchase price.WIth a FHA loan, you can get into your new home with just 3.5% down compared to at least 10% with a conventional loan.5% down, and it doesn’t even have to be your own money.   The money can be gifted to you by a family member.    Conventional loans for years have been the staple for purchasing new homes.80/20 financing and 100% loans were common for first time homebuyers.   Now, expect to pay anywhere from 10 to 20 percent down to get a conventional loan, and above 80% is going to require Private Mortgage Insurance.

 

FHA also allows first time home buyers the opportunity to purchase when conventional lenders issue a denial.The Federal Government insures FHA loans, and because of the state of affairs with the housing market, the guidelines are a little less strict compared to conventional.Perfect credit and a 680 credit score is going to be required by most lenders for conventional loans.    For a FHA purchase, the minimum credit score required by most lenders is 620.A 620 Credit score will be required by most lenders but some select lenders can go as low as 580.

 

FHA is a very strong option for purchases.   Although 3.100% of the 3.5% down payment requirement can be gifted.   What this means is that you can have your down payment gifted from a family member, and walk into your home without having to put any of your own money down.   

 

Up to 6% of the purchase price can be in the form a seller concession.   Conventional loans limit the seller credit to 3%, while you can go as high as 6% through FHA.The concession can be used to buy down the rate for the homebuyer, or cover any of the other closing costs.The 2-1 buydown is a great way for first time homebuyers to take advantage of the seller concession.By using this seller concession, buyers can get an interest rate 2% below the normal rate.   

 

You can also expect the appraisal process to be a little smoother with FHA compared to a conventional appraisal.FHA loans do not require that the appraisal be ordered through the newly formed home valuation code of conduct (HVCC) which has slowed the process down significantly.

 

FHA has been around since 1934, and now represents almost 50% of the purchase market.FHA is growing in popularity among first time home buyers.    To find out more about how to qualify for an FHA home loan, visit http://www.timmarose.com

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Before You Put Your Name On Your New Mailbox – First Steps After Your Bid Has Been Accepted

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Once your bid for your dream property has been accepted, there is still so much to do before you can call the house trully yours. {In the following article, an experienced  real estate agent will familiarize you with the most important pitfalls of the process.}
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What Is The Minimum Credit Score For A VA Streamline in Illinois?

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Many veterans who are currently in a VA loan are hearing about the VA streamline refinance program (also known as the VA IRRRL program) and have had someone tell them that “there is a minimum credit score requirement” for the Illinois VA streamline refinance program.
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Illinois Attorney General Sues For Violating Illinois Mortgage Rescue Fraud Act

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The crackdown on shady mortgage rescue scams has begun across the nation and is alive and well right here in Illinois. Last week, the Illinois Attorney General sued several companies under the Illinois Mortgage Rescue Fraud Act.

According to the Chicago Tribune, the four complaints that were filed in Cook County Circuit Court included:

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