It’s been a great year for Real Estate in Orange County, and there are more first time home buyers than ever before who are actively searching for their first homes, or are getting ready to buy.
In this post we will share with you our “game plan”, or best tips, which will help you buy your first home in Orange County, or anywhere else you may be planning on buying a home in the United States.
Tip 1 – Get Pre-Qualified For a Mortgage Loan
Getting pre-qualified for a mortgage is vital since it will show you how much of a mortgage loan you will qualify for.
To get pre-qualified speak with your lender or a mortgage loan specialist.
Tip 2 – Determine How Much You Want To Pay For a Home
Once you have been pre-qualified for a mortgage it’s important to determine how much you actually want to pay for a home each month.
At Fred Sed & Associates we have a term we use to help our client’s factor in how much they will be comfortable paying each month for a home and it’s called PITIA.
PITIA is short for: Principal Amount, Interest, Property Taxes, Homeowners Insurance and Association Dues.
You must factor in what is the maximum amount you can afford to pay for a home each month based on PITIA because, failure to do so will only mean that you will end up behind on your regular bills or underwater with your mortgage if you don’t think about your budget BEFORE you buy a home.
Tip 3 – Think About How Much Money You Will Put Down On a Home
Last of all, but most important comes the issue of your down payment on a home.
The general rule of thumb in Real Estate is that it’s always a good idea to put down at least 20 percent on a home since a larger down payment means a better interest rate and a smaller monthly payment, but if you can’t put down 20 percent on a home other options may be available to you.
For example: Fannie Mae recently launched their HomePath Ready Buyer Program which will pay a first time home buyers closing costs up to 3 percent of the homes purchase price. This means that if you were to purchase a townhome for $150,000, Fannie Mae would pay about $4,500 for closing costs.
Get More First Time Home Buyer Tips
To get more first time home buyer tips contact Fred Sed & Associates today by calling (949) 272-0125.
We look forward to sitting down with you for a personalized first time home buyer consultation if you are planning on buying a home in Orange County.