The Best Guide for a First Time Home Buyer in California
Buying a home for the first time is a big step in a person’s life. A home of one’s own provides stability, as well as wellbeing for the family for years to come. However, getting the first home is not as easy as it sounds. First-time buyers face several challenges when purchasing their first property.
In many cases, due to lack of experience or lack of knowledge, they make mistakes or lose sight of the best purchase or financing alternatives on the market. That is why if you are a first time home buyer in California, you should take into account certain key aspects that will allow you to successfully acquire your first house.
Top 5-Step Guide for a First Time Home Buyer in California
- Evaluate Your Finances
Before exploring the different mortgage and refinance options, it is essential that you analyze your finances, so that you know your ability to pay for the entire purchase process. First of all, take into account the money you have available for the down payment, and also consider that at the beginning you will also have to make closing payments. For your mortgage loan application, you should consider your credit score, your assets, your liabilities, and your debt-to-income (DTI) ratio. Finally, determine how much you will be able to pay for a monthly payment, which should be around 28% of your gross income.
- Decide on the Type of Mortgage
There are different alternatives for you to finance your first home. There are 30-year or 15-year mortgages, fixed and variable interest credits. You should evaluate the alternatives according to your capabilities. You can consider mixed options, such as taking a 15-year mortgage and later opting for refinancing. Also, analyze the different government and private mortgage loan alternatives. In California, CalFHA even offers very favorable programs for first-time buyers.
- Find a Top Mortgage Agent
You must have professional advice, especially since it is your first home. Specialized mortgage brokers will help you analyze the different California mortgage and refinance rates. You will be able to choose the best mortgage and find the best mortgage lenders. They will also advise and support you in every step of your loan application process and property purchase, to minimize mistakes.
- Choose Your Home
Once you have determined your finances, and you know the ideal California mortgage alternative according to your means, it’s time to find your home. When making your selection, consider the short, medium, and long term. Consider your family’s growth plans, and make your selection with your family’s future in mind.
- Negotiate and Close the Deal
When you have the right house, it’s time to make the offer and start the closing process. Lean on your real estate specialist both in the negotiation process and in the closing. Specialized brokers will give you the best options for inspections and the purchase of the insurance policy. They will also advise you on permits and other requirements that you need to comply with to complete your purchase process.
Trust the Best
If you are a first time home buyer, you have the backing of the best: Dimitrije Isakovic Mortgage Group. Dimitrije has over 25 years in the California real estate industry and has assembled the most outstanding team of specialists in the region. We are ready for you to get your family’s first home, which will bring you happiness and well-being for years to come. Contact us and schedule an appointment for a personal consultation.