Here’s the Video Transcript:
Hey everyone, today we’re talking about how to buy a house and my money-saving tips on how to do so and we are starting right now! Welcome to my channel! I’m so excited you are here and educating yourself on how to buy your first house ever! If you’ve already bought a house before – maybe you plan to buy another? Stay tuned because I have some money saving tips coming your way! My name is Ashley Jurney and I’m your local Charlottesville REALTOR and buyer specialist with Town. You can learn more about us and Charlottesville real estate by visiting our website at TOWNCVILLE.COM. I’m going to break this video up into two parts and eight tips so when you’re finished with this video be sure to follow up with part two. Home buying tip number one: get ready financially.
You want a credit score of about 640 or higher. Some lenders will qualify you below that but you’re gonna end up paying more for the loan and I’m trying to save you money 😉 Have you had stable employment the last year and can you provide recent paystubs to a mortgage lender. Do you have some savings? As a homeowner you are responsible for everything in your home so if something breaks you can’t just call your landlord to come and fix it so you need to make sure you have some money reserved for home maintenance. How much money do you need to buy a house? Well, expect to put down around 0 to 10 percent with the average being around 3.5% down but every sale is different so to learn more about a typical down payment on a house click on this link above and you may find out that you can qualify for a loan that wouldn’t require a down payment at all! There are also closing costs which are about three percent on average these are fees charged by the bank for borrowing the mortgage, title insurance (which if you don’t know what that is or want to know more information about what it is what it covers click on the link above), closing costs also cover fees that your attorney or title company will charge for processing the transaction and recording your deed.
You can ask the seller to cover your closing cost so you can conserve some of your cash but just know that this could make your offer less appealing to the seller. Home buying tip number 2: get pre-qualified. If you have a bank that you want to use and want to get a mortgage loan through feel free to or you can ask a realtor like me for a recommendation and I’d be happy to refer you to a local lender.Llocal lenders are preferred because they’re going to be more familiar with the local process which can keep closing on schedule. It’s never a bad idea to get multiple quotes from different lenders and shop around to get the best rate and terms.
Being pre-qualified is important so that we know what your budget is and aren’t looking at houses you can’t afford, wasting your time. If you need help starting the process of pre-approval, email me at firstname.lastname@example.org and I will send you my preferred local lenders. When you go to make an offer on a property you need to submit it with a pre-approval letter from your lender. This ensures the seller and list agent that you can afford to purchase the property and that you have a lender willing to give you a loan. Otherwise, the seller isn’t going to take their home off the market and risk losing out on other offers for a buyer that may not be able to afford the home. Home buying tip number 3: Hire a REALTOR. A realtor knows how to help you save money on buying a house. We have a lot more experience than you and a buyer agent is free! We are paid by the listing broker. The seller pays a 6% Commission to the list broker to get the home sold and they share that Commission with the buyer agent.
This is likely going to be the biggest transaction of your life so you want a realtor to have your best interest at heart. A realtor can give you access to the local MLS which stands for multiple listing service. This is an online system that all of the Realtors input listings into. This is the only way to get immediate access to properties that come onto the market!! Realtor.com and Zillow are back-linked from the MLS so there’s not only a lag but they are notorious for being inaccurate ! 🙁 If you’re serious about buying in the Charlottesville market you need to have access to the MLS because it’s a seller’s market there are more buyers than houses for sale and you need to make sure you’re the first buyer on the scene to have a chance of making an offer. Home buying tip number four: How to find the right home. It’s time to start actively looking for homes now! When you find a home or homes that meet all of your criteria, call your realtor and ask to schedule a private tour. Try to allow up to 24 hours notice as a courtesy to the seller to get their home prepped for viewing and allow time for your Realtor to schedule the showings.
My best advice for buying a new home is to slow down, overcome your emotions, and make a home purchase decision that’s best for your finances. Alright we’ve reached the end of video 1 in this two-part video series on how to buy a house. Please make sure to like this video if you found it helpful or comment if you have any questions. Let me know if you plan to buy a house soon or what’s your goal do you have a 5-year plan? Let me know in the comments below.
. See you in part 2! .