Home Buyers Information
First Time Home Buyer Tips!
Buying a first home is one of the most important decisions a person can make, but it can be a complex process. Troy Allred offer's tips for Vernal, Utah and Uintah Basin first time home buyers with a checklist of the 10 essential steps to help make the process smooth and successful. MY RESUME
A Variety of Homes I have sold representing buyers from February 23, 2012 to February 23, 2013
Step #1—Ask Your Vernal Lender About Available Mortgage Programs:
An experienced mortgage company should be able to work with you one-on-one to determine exactly which mortgage programs will meet your individual needs and what you can qualify for based on your personal information.
Step #2—Research the Terms of the Mortgage:
Different mortgage lenders have varying price structures that can affect the amount that you pay for your home. An annual percentage rate (APR) includes the actual interest rate on the loan, as well as certain fees and costs associated with the loan. Because a customer may be paying points and other closing costs, the APR disclosed may appear to be higher than the actual interest rate quoted for the loan. Not all lenders calculate APR identically; however, it does give customers a relatively fair method of comparing price on their potential loans.
Step #3—Get a Pre-Qualified Loan Commitment:
Even before the house hunting begins, home buyers need to determine how much they can afford. Most Mortgage companies or lending institutions provide pre-qualified loan commitments. Sellers often don't take an offer seriously unless the prospective first-time buyer has some assurance of creditworthiness from a mortgage company. Ask your Vernal Loan Officer for a full qualification approval letter, which carry's more weight than a pre-qualification. A full qualification approval letter means more because a full credit report is ordered on the customer so that a true loan decision can be made the same day a customer applies. Shopping for a home with a pre-approved mortgage enables a customer to negotiate as a cash buyer and submit an offer on a home with confidence that the mortgage will be issued and the sale will be completed. Any Lender in Vernal Utah can give you this letter if you ask for one. So talk to you Vernal loan officer and let them know what you want. Click on the link below to find a local vernal utah mortgage company.
Buying Bank Owned Homes Information
Step #4—Do Your "Home-work":
Be sure to go online to check for listings, neighborhood information, current mortgage information and home ownership services. The right amount of research will help you to better understand the marketplace and homes available in your price range when you're ready to work with a real estate professional. Educate yourself about local neighborhoods by driving through the subdivisions or areas you prefer at all hours of the day and nite, to make sure there are no unpleasant surprises after you have already purchased your Uintah Basin Home. Click below to check out some of Vernal and Uintah County's New Subdivisions, addresses provided.
Step #5—Make a Checklist:
To help make the home buying process a little easier, home buyers should create a checklist of the important features they want in a home. Location and the number of bedrooms and bathrooms are usually important. Other important questions to answer: What will the commute to work be like? Are there shopping centers, parks, and schools located near the home?
Step #6—Find a Buyer's Broker:
A buyer's broker or agent represents the buyer's interests and helps identify homes that are for sale and in the right price range. Your also will help with such tasks as writing contracts, negotiating the asking price, and closing the purchase.
Step #7—Make an Offer:
Once you find the right house, make an offer. Make sure that your offer is contingent on two items: 1) You're able to obtain adequate financing (if you haven't done so already), and 2) you can pull out if the property doesn't pass the home inspection, and the owner can't come to terms about how to fix the problem. Be prepared for counter-offers from other buyers and some negotiation with the seller. Make an earnest money deposit, which is a check that you'll give your agent to indicate that you're serious about buying the house. The check will apply toward the sales price if the deal goes through; if not, you get it back. You should also set a time limit with your agent that the offer you've made is good for three days. If an offer is accepted, it goes to the contract phase.
Step #8—Hire A Home Inspector:
Making an offer contingent on an inspection by a registered home inspector can save thousands of dollars by avoiding unseen problems. Inspectors will check the house for any structural damage. In the contract with the seller, it should state any necessary repairs that must be made before closing on the house. Prior to closing, walk through the house and check that such repairs have been completed. Click on the link below for vernal home inspectors.
Step #9—Buy Homeowners Insurance:
Lenders require homeowners insurance to protect the new homebuyer's interests as well as their own. There are many providers so shop around for the best rates.
Step #10—The Closing:
This is where the seller and buyer sign settlement-closing papers to transfer the ownership of the home and all transactions are finalized. Congratulations, you achieved the American dream and you are now a homeowner!
Some other useful links below to search for your next home or your first home in Vernal Utah and the Uintah Basin.
Our Uintah Basin Homes for Sale
Century 21 Parker Real Estate Professionals Home Listings
Different types of loans
FHA LOANS
Available as one-year ARMs or 15- or 30-year fixed-rate mortgages, FHA loans are insured by the Federal Housing Administration and offer an attractively low down payment—as low as 3 percent. There is monthly mortgage insurance but FHA loans have looser requirements; you may qualify for an FHA loan even if you have a past bankruptcy.
FHA loans were created to help first time buyers and others who may not qualify for other financial options, but there's no requirement that your income be below a certain level or that you be a first time home. There are limits, however, to the amount you can borrow. These limits are adjusted periodically. (In 1998, the basic limit was $86,317 for single-family homes and $170,362 in high-cost counties.) The current amount you can borrow in Uintah County is $271,000 using an FHA Loan. A co-buyer doesn't have to live on the premises, as with most conventional loans. In fact, you can often pay your down payment with gift money. FHA loans can be assumed from the seller, which is attractive to future buyers, If the future buyer qualifies as you did.
VA-guaranteed loans
Strictly for veterans of the U.S. armed forces and in some cases their widows or widowers, these 30-year VA loans are guaranteed by the Department of Veterans Affairs. There's no monthly mortgage insurance premium, and in most cases no down payment is required. They include a choice of three repayment plans, including fixed-rate, and they usually have attractive lending terms. Prepayment is allowed without penalty, and the loans are assumable by other qualified veterans; you may have to pre qualify.
Note that fees can be steep, including credit report, survey title, VA appraisal, loan-origination, and recording fees. Since 1981 there's also been a VA funding fee (with an exemption for veterans who receive compensation for disabilities). In 2001, the fee for eligible first time home buyer's ranged from 2 percent of the selling price for regular military to 2.75 percent for the Reserves or National Guard. (Reductions apply if you make a 5 or 10 percent down payment.) The funding fee for subsequent loans with zero down payment is 3 percent.
In other words, these loans aren't cheap, but they're useful if you're low on cash. They also have a high upper limit ($203,000 as of 2001), so you'll have more houses to choose from. To find out if you're eligible, check with your regional VA office
Adjustable-Rate Mortgage
Unlike fixed-rate mortgages, ARMs carry an interest rate that's adjusted at specified intervals—generally one, three, or five years. The starting interest is lower (usually by 1 to 4 percent) than that of almost any other type of loan, which makes it a great option for cash-poor buyers or for those who expect to move in five to seven years. But it's a gamble. Increases (or decreases) in your rate are tied to an economic index such as Treasury securities. At each interval—every five years for a five-year ARM —the rate is adjusted according to the index; additionally, the lender adds a margin of 2 to 3 percent. So if the index has taken a leap since your last interval, you could end up paying more per month than with a 30-year fixed-rate loan. But if you move out of your home within five years, or if the index rate drops, you can save a substantial amount of money over a fixed-rate loan.
ARMs include some protection for the borrower in the form of a lifetime cap, specified in your loan agreement. If an ARM has a lifetime cap of 5 percent, it means your interest rate will never be more than 5 percent higher than your originating rate, even if the index your loan is tied to exceeds 5 percent. You may also be offered, or negotiate for, a periodic cap, limiting the allowable increase at each interval. If possible, avoid including a payment cap in your loan agreement—it could result in negative amortization.
Fixed-rate mortgage Conventional
With fixed-rate loans, your interest rate is locked in at the start, so your monthly loan payments stay the same throughout the life of the loan. (Note that if you're lucky enough to lock in at a low interest rate, future buyers probably won't be able to assume the loan.)
Long-term fixed-rate loan.
The most common of these carries a 30-year term. For the first years most of your payments get applied toward interest, which is tax-deductible. If your loan agreement allows prepayment without penalty, you can also make additional payments on the principal. (Tip: One extra payment per year enables you to pay down your loan almost as fast as a 15-year loan.)
Down payments are on the high side—10 to 20 percent, and increasingly the latter—but if you pay 20 percent you're exempt from paying high monthly private mortgage insurance. While payments are lower than for a short-term loan, long-term interest rates are generally higher: if you take out a $100,000 loan with 8 percent interest, you'll ultimately pay almost $100,000 more than for a 15-year loan. This is a good loan for buyers with a fixed, steady income or who can't afford the payments of a short-term loan
First Time Buyers Real Estate Agents Vernal UT Uintah Basin Real Estate Agents
