RE/MAX agent Yvonne Russell

First Time Buyers

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Home Buying Process Video for First Time Home Buyers

First Time Home Buyer Process:

Home ownership is still possible for Millennials even in these economic times. When a home buyer is ready to make the move into a new home there are important steps they should consider. Many first time home buyers are not aware of cost other than the mortgage. Some cost overlooked by buyers include property insurance, taxes, HOA dues and utility cost. Often home buyers are not looking ahead beyond the closing date.

Here are the basic home buying steps:

How to estimate the cost of buying a house is only the start of the expenses you'll need to manage when you buy house. Before you buy be sure to the full cost of your dream home. You will need: A great experienced REALTOR®, down payment, closing costs, home inspection, movers, and possibly a lawyer and utility connection fees.

Down payment:

Deciding how much to put down can be determined by the type of loan you are applying for. Most homes require at least 5% of the purchase price as a down payment on a conventional loan and FHA loans only require a 3 1/2%. Some lenders run special First Time Buyer Programs where the home buyer can save 1/2 - 1 %. Ask your REALTOR® if such programs exist in her area.

Mortgage Bank’s Good Faith Estimate:

Find out what your closing costs will be from your mortgage lender which tend to be 2 to 3% of the loan value.closing cost will include lenders assessments, prepaids such as interest, taxes and insurance. In the El Paso market your #elpasotxagent can help negotiate some of these cost as a seller concession.



Home Inspections:

Ask your REALTOR® for a list of home inspectors including roof, pool, septic systems and others. The average home inspection runs about $200 to $300 and a termite inspection is about $100. Anticipate a higher inspection cost if the home has more amenities than a standard home or if the condition of the home is questionable which is common with HUD Foreclosures.

Moving Cost:

Estimate your moving expenses which will depend on the distance you are relocating to. Additional cost may vary by the size of the truck used and gas. Some of these costs can be defrayed if you are relocating to another city because of your job.

Utilities:

Ask your real estate agent what the average cost are for gas, water, electric and cable in the area. Then tally the total utility connection fees.

Lawyer:

Rarely are the services of an attorney needed in the El Paso area. Nonetheless, the standard 1-4 Texas Purchase contract advices buyers and sellers to consult an attorney when signing an binding contract.