NMLS# 252108 | Equal Housing Lender

Scott BuehlerMortgage ConsultantNMLS# 1794818 | CA-DBO 1794818Call/Text : 435.590.1019sbuehler@vfund.comScottBuehler.com

HOME BUYING GUIDE

benefits of buying a home

PRIDE OF OWNERSHIP

POSSIBLE TAX WRITE-OFFS

MAY HELP INCREASE YOUR CREDIT SCORE

PREDICTABLE COSTS THAT ARE EASIER TO AFFORD OVER TIME

GROWTH IN EQUITY

FUTURE INVESTMENT OPPORTUNITIES

FREEDOM TO RENOVATE AND DECORATE

some Steps in the Home Buying Process

CLOSING

GETTING PREQUALIFIED

HIRING A REAL ESTATE AGENT

GETTING A HOME INSPECTION

SIGNING A SALES CONTRACT OR PURCHASE AGREEMENT

SUBMITTING AN OFFER AND NEGOTIATING

SHOPPING FOR A HOME

GETTING A HOME APPRAISAL

Prequalification is typically the first step to buying a home. Sellers prefer proof of your ability to purchase a home before considering an offer. It’s important to know your financial limitations before you begin shopping for a home.

step 1:

prequalification

5.

2. Your debt-to-income ratio is calculated and reviewed along with your credit score, income, and employment

3. We determine what programs and loans you qualify for and discuss your options with you

1. You complete a mortgage application either online or in person. Credit will be pulled, and income documentation will be requested

4. Once documentation is collected, your information will be sent to underwriting for review to ensure guidelines are met

If approved, underwriting will issue a conditional approval and maximum purchase price you qualify for

What is the Pre-Qualification Process?

What Types of LoansMight You Pre-Qualify For

FHA Conventional VAjumbo• Typically requires less

of down payment

• Requires 580 credit score or higher

• Requires FHA mortgage insurance

• Condos and townhomes don’t qualify without FHA approval; certain homes don’t qualify at all (based on home condition)

• Typically requires more of a down payment than FHA

• Requires a 620 or higher

• Less restrictions about type of home or home condition

• Only available to military members/spouses who meet certain requirements

• Does not require a down payment

• Requires 580 credit score or higher

• For those looking to buy a home over the cost of a conventional conforming loan limit

• Typically requires a higher down payment

• Minimum credit score 680-740 depending on property type

Pre-Qualification Dos & Do Nots

Just because you’re given a certain number during pre-qualification, it doesn’t mean that number is set in stone. REMEMBER: things like your credit score, income, and employment all play a role in what you qualify for, and all of those things will be ran again at the end when you actually close on a home. Since the home buying process is usually lengthy, a lot of things could change between now and then, meaning your loan options could change as well. If you don’t want to jeopardize your loan, follow these tips:

do: do not:• Find out your current credit score• Check your credit score for errors• Pay all of your bills on time• Work on decreasing your debt• Stick to a budget• Ask questions when you need to

• Take out any new loans• Co-sign on a loan for someone else• Consolidate your loans• Get a car lease• Apply for a new credit card (even a department

store card)• Change or quit your job• Make changes in how you file your tax forms• Deposit large unsourced amounts into your

bank account (apart from your normal payroll check)

• Make a hard credit inquiry

Step 2:Hiring a Real Estate Agent

Hiring a real estate agent is an important step in buying a home. Yes, it’s possible to buy a house without hiring a real estate agent, but it helps to have one on your side. Plus, hiring a real estate agent has many perks! For one thing, they’re experts in their field whose main goal is to help you make wise real estate purchases. They also have negotiating skills and will be able to correctly write the contract for purchase to ensure you receive exactly what you want.

Step 3: shopping for a home

According to realtor.com, the average buyer will visit 10 homes over the course of 10 weeks before they find a place they want to put an offer in on. However, don’t let this statistic rush you. Take your time and be sure to communicate with your real estate agent. Try making a list of must-haves (things you absolutely would need in a home to consider buying it) and a list of wants (things you think would be nice to have). You should consider factors like location, lot and home size, home layout, number of bedrooms and bathrooms, the age of the home, and the condition of the home. Just make sure you only look at homes in your budget – it’s not worth getting your hopes up on homes that you won’t be able to afford.

https://www.realtor.com/advice/buy/how-many-homes-will-it-take/

Step 4: submitting an offer and negotiating

Once you find a place you want to put an offer in on, work with your real estate agent (if applicable) to create and submit a written offer. Your agent will know exactly how much money to offer and will include all the important details (like an offer expiration date or closing date as well as details about your financing). At this point, the seller will either accept your offer, make a counteroffer, or decline your offer all together. Depending on what happens, your real estate agent can assist you in negotiating and submitting refined offers or moving on to look at new houses all together.

If your offer is accepted, you will enter a sales contract/purchase agreement with the seller. This doesn’t necessarily mean you are 100% obligated to buy the home - depending on how step 6 (getting an inspection) and step 7 (getting an appraisal) go, you may not have to go through with the purchase at all. However, the contract does ensure the seller take the house off the market as the process continues. If you think this sounds like a riskier move for the seller than the buyer, you’re right. Therefore buyers oftentimes use something called earnest money once a contract is signed (Earnest money is a good faith deposit made when purschasing a home).

Step 5: signing a sales contract/purchase agreements

Step 6: Getting a home inspection

Once your contract is signed, It’s your responsibility to arrange and schedule a professional home inspection, if you choose to. The purpose of a home inspection is to analyze the condition of the home and make sure the buyer isn’t hiding anything. Hiring a professional home inspector might cost you anywhere from $200-$500, but it will be more than worth it in the end – they may be able to identify problems with things like the roof, foundation, pipes, or electricity that you would’ve never found on your own. They’re also trained to be on the lookout for things like asbestos and lead paint. Depending on the results of your inspection, you can potentially try to renegotiate your contract – perhaps you can pay a lower price for the home, or maybe the seller can put money for a necessary repair in your escrow account. Additionally, if the problems found were severe enough, you may be able to back out of your contract entirely.

Next, an arrangement will be made for the house to be appraised by a professional. While an inspection informs you of the condition of a home and the risks involved with purchasing it, an appraisal is intended to inform both you and your lender of the actual property value. In other words, someone completing an appraisal determines what a fair/unbiased price for the property is based on not only the inspection, but other factors as well such as comparable property prices, neighborhood crime rates, and lot size. This might seem like yet another cost you wish you could avoid, but it’s worth it , and required – depending on the results of your appraisal, you may be in your right to renegotiate.

Step 7: getting a home appraisal

Step 8: Closing

• Go over your mortgage application one last time -Did your credit score change? -Did your job or income change? -Are you eligible for new rates?• Pay closing fees -Lender fees -Title fees -State fees• Finalize your insurance• Work with a title agent• Sign the closing disclosures and all the other required documentation