Home Buyers Guide
Congratulations, you have just made the first steps into becoming a home owner. Now where do we go from here? That is an excellent question and our goal for this section is to present a guide that will improve your understanding of the real estate transaction.
At A&A Realty we think of ourselves as a well-oiled machine, with thousands of Bakersfield real estate transactions under our belt, we have proprietary systems that flat out get the results we all hope for in the home buying deal. From the pre-approval process all the way down to the closing of your escrow, we are confident in our ability to ensure you have a smooth and fun experience.
Please, don’t feel overwhelmed, as we strive to make the buying process easy on you and take the stress out of the equation.
Hopefully, after you have read through this you will be more comfortable with real estate terminology and how A&A Realty will help you through the course of buying a new home in Bakersfield CA.
This is the first step in the home buying process, without a pre-approval letter we will not be able to even get started. When you get approved for a certain amount this will ensure that we will not get into Escrow and see your transaction fall apart because we skipped an important step.
The pre-approval step allows us to determine many factors about your real estate deal. Here are a few that are worth mentioning:
- How large of a loan you will qualify for.
- Will you qualify for any down payment assistance programs?
- Down payment amount.
- Closing cost amount.
Does all this sound overwhelming already?
Well, that’s because this is one of the most important steps of the home buying process. Imagine if you decided to skip this step because you wanted to go see your dream home first?
We take you out to see five houses in one day and find one you love, now what?
Unfortunately, the realtor has to break some bad news and tells you in order to make an offer we need to see a letter of approval from a Mortgage Lender.
Most sellers will not even consider an offer unless we have already been through the pre-approval course.
So what are we getting at? Before we take anymore steps we need you to be Pre-approved for your new home. This will usually take a day or two in order to make sure its a thorough approval.
Now here’s a scenerio for you to consider. You decide to contact a Realtor to make that bid on the house you fell in love with and what do you know, the house is now PENDING for sale.
Here at A & A Realty, we do not let this type of situation happen, it only makes the process harder on you so lets tackle the pre approval requirements first in order to ensure you get the home of your dreams.
The requirements for an FHA loan in 2016 are the following:
- 620 credit score or better
- 2 year work history
- No late payments or collections in the last 12 months
If you meet these 3 requirements we will most likely be able to move on to the next part of the pre-approval process, which is gathering your financial documentation. We will need the following:
- 2 years most recent taxes
- 2 most recent paystubs
- 2 most recent bank statements
Once this documentation is gathered we will coordinate an appointment with one of our preferred lenders to try to get you approved for the First Time Home Buyer Program.
During this appointment you will get approved for a home loan and discuss down payment, closing costs and other loan programs.
All the information given to you during the pre-approval appointment allows us to be able to make the best possible offer on your behalf when you find a home that you are interested in purchasing.
Create a list of needs and wants
The first thing we ask our clients to do is make 2 lists. Now this list will enable us to analyze your needs. Obviously, everyone is unique and have different desires in a home.
- The first should include items you must have (i.e., the number of bedrooms you need for the size of your family, a one-story house if accessibility is a factor, etc.).
- The second list is your wishes, things you would like to have (pool, den, etc.) but that are not absolutely necessary.
Realistically for first-time buyers, you probably will not get everything on your wish list, but it will keep you on track for what you are looking for. Again it all depends on an individuals situation but it is always good to have a list of wants and needs.
First Buyer Consultation
You’re approved, excited and have that long list of wants and needs. The next step is to come in and have a face to face meeting with us.
In that meeting, we discuss your list of wants and needs, your loan approval and how the numbers work as far as down payment and closing costs and we discuss the home buying process from start to end.
A big mistake many people make while buying their home in Bakersfield is they are simply not organized, do not have a strategy, not sure how their loan works or how much money they need to buy a house and want to jump right in.
The goal of our first consultation is to be able to answer all your questions and educate you on how the entire process works. The more you understand about the process the less stressful the experience and the more prepared you are for the home buying adventure.