Buying your first West Boca Raton home may be the most exciting day in your life, but the buying process leading up to that sale may sometimes seem a little frightening.
After all, you’ve got to figure out the financing that will fit within your budget, navigate the credit straits, and most important, make that big decision about what kind of home in West Boca Raton – condo, townhouse, single family house – will work best for you and your family.
However, Marc Jablon and the Jablon Team will help you make the experience of finding your first West Boca Raton home – and then buying that home – easy and enjoyable.
Follow these steps to find your first home (or second or even third)
Look closely at your financial picture
Once you have an overview of your where your money is, you’re ready to talk to your mortgage banker about buying your West Boca home. When you apply for your first mortgage, your mortgage lender will check your credit report and tell you your credit score.
Believe it or not, large numbers of first time homebuyers are unaware of their credit scores. It’s a very good idea for you to check your credit report even before your call your mortgage broker.
Review your monthly budget carefully.
You need to know all of the items you spend money on each month. Creating and maintaining a monthly budget is a vital aspect of buying your first home in West Boca. You have to buy food, you have to pay your electric bill and water bill. Then there’s that cell phone that’s attached to all of us like a vital organ. And don’t forget the cable TV bill. Finally, although you may be watching every dollar, every family needs a break for occasional fun and entertainment. So plan for this, also.
Be aware of the expenses in buying your first home.
As a first time homebuyer, you’ll need to budget for home owner’s insurance, the occasional repairs that are part of owning every home and, everybody’s favorite unavoidable expense, taxes.
Most important, prepare your budget for your monthly mortgage payments. Those payments include the principal, the interest, the insurance, and the taxes. In addition, if you put down less than 20% of the cost of your first home as a downpayment, you will have to factor in an additional cost for private mortgage insurance (PMI).
Your mortgage banker will help you to determine exactly how much house you can comfortably afford. The rule that banks usually apply to mortgage loans is that the piti (principal, interest, taxes, insurance – both home and pmi) may not exceed 28-36 percent on a conventional loan and 31-43 percent on a Federal Housing Authority (FHA) loan.
Decide upon a downpayment
You will need to have sufficient funds to put toward a down payment. As a first time West Boca Raton home buyer this may be as little as 3.5% of the cost, if you qualify for an FHA loan, all the way up to 20% or more, depending upon your finances.
In addition, you will need additional funds, typically between 3% and 4% of the total cost, to put toward closing costs.
Ladies and Gentlemen, start your search.
Okay, you’ve seen your credit report, you’ve talked to your mortgage broker and you know your scores fall within the bank’s preferred range. You’ve reviewed your budget and your finances say you’re ready to buy your first home. You’ve decided what kind of home you’d like to find. And now it’s time to begin your West Boca Raton home search.
Marc Jablon and the Jablon Team are here to help you find the dream home that best fits your needs and your budget.
Need more detailed information? Ask for our First Time Home Buyer Tutorial
Just send an email to [email protected] and ask for your free copy of the Jablon Team First Time Home Buyer Tutorial. It will give you a full picture of the home buying process.
When you’re ready to buy or sell a West Boca Raton home, don’t just hire an agent, hire a team. The Jablon Team.
Marc Jablon, The Jablon Team
Re/Max Complete Solutions