Our Custom Calculator https://docs.google.com/spreadsheets/…
First time home buyer downpayment assistant programs resource by state https://www.hsh.com/finance/mortgage/…
Step 1: Know Your Market
What home type are you interested in? What to look for? Average Prices in the area School Ratings in the area Area amenities (grocery stores, jobs, restaurants, hospitals, etc.) Crime Plans for development in the area Where to do this research? Real estate sites like Trulia, Redfin, Realtor, Zillow https://www.redfin.com/ https://www.zillow.com/ https://www.realtor.com/ https://www.trulia.com/ County Property appraiser site. You can find this by typing the “name of your county” property appraiser into google. Drive through the area of interest
Step 2: Understand Your Loan Options
This link covers the 4 most common loans and 2 rehab FHA loans as well. https://www.amerifirst.com/resources/… 4 Common Loan Types VA loan (Primary Residence Loan) 100% financing. May be used for single-family or small multi-family homes. Must be a Veteran to qualify. https://www.va.gov/housing-assistance… USDA Loan (Primary Residence Loan) 100% financing available. Location and income restriction. Link below: https://www.usdaloans.com/program/ https://www.rd.usda.gov/browse-state FHA 3.5% DOWN. May buy single-family or small multi-family housing. Loan limits, higher closing costs associated https://www.nerdwallet.com/article/mo…. Conventional (primary residence or Investment Only Property) https://www.nerdwallet.com/article/mo….
Step 3: Get Preapproved
Preapproval is when a lender does a quick check on your finances to see if they would be willing to give you a loan on a home Documents to have readily available such as w2 past 2 years tax returns pay stubs, etc. You don’t have to use the full amount, use what you can afford and what works for you. Get a least 3
Step 4: Find a Real estate Agent Interview them.
Look their license up to see how long they have been practicing on this site: https://www.myfloridalicense.com/wl11…. Make sure they are experienced in your area of interest. Look at reviews of their brokerage which should be listed on their card. They will be the one setting up viewings of all the different places you are interested in from your research. Something important to realize is that your agent may not always be acting in your best interest. They get paid by the seller not by you and it is usually percentage-based, so the more you pay for the house the more they get paid.
Step 5: Estimate Property ROI (Return on Investment)
ROI = calculation of how much income you receive for your investment Always trust the numbers over your emotions So how do we calculate this? Biggerpockets calculator https://www.biggerpockets.com/rental-… Where to find this info for rental calculator? Rentometer https://www.rentometer.com/ What are Current renters paying Rent Zestimate. https://www.zillow.com/rental-manager… Check real estate apps to see what places are listed to be rented for. Estimate mortgage, taxes, and insurance: https://www.nerdwallet.com/mortgages/…
Step 6: Make an offer Your offer will be rejected.
There are always more opportunities so that is okay, move on to the next best or even better investment. or They will counter your offer and you now have to option to accept or re-counter until you both agree on the terms or until one of you walks away. or It will be accepted and you will sign a contract At this point, you will move forward with the mortgage application process from the lender that provided you the best terms and services from the pre-approval process which usually takes 30-45 days from this point to closing.
Step 7: Always get an inspection
Once both parties have signed the contract there is an inspection period of typically 10 days. An inspection is not required, but it is highly recommended. Make sure electricity is turned on by the seller. If the property has it’s own drainage fields and septic tank (is not on city sewage), you may want to get a septic tank inspection also.
Step 8: Close on your property
Your loan will be approved after you have provided all the necessary documents and chosen home insurance. You will receive an initial and final loan disclosure. Makes sure everything matches with the terms you agreed to before going to closing. If it is a rental property with renters make sure the security deposit and prorated rent are listed on your loan disclosure prior to closing.