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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Buying our first home. I would like to know everything there

Customer Question

Buying our first home. I would like to know everything there is to know about first time buyers. How it all works. What to ask realtor what questions about the home, where to get preapproved...a bank, realtor? Incentives? House inspection, short sales. Please I just need to know everything. We are expecting a baby in late June and are looking at a 30k down payment. If it matters our income together is about 106k a year
Submitted: 10 months ago.
Category: Finance
Expert:  Megan C replied 10 months ago.

Thank you for your question.

1) You will have to put down at least 20% in most cases -- you can get away with less if you qualify for an FHA or VA loan.

2) The loan officer will want to see less than 45% debt to income -- that means, the total of your debt payments including mortgage should be 45% or less than your income.

3) Get pre-approved with a lender. I favor Wells Fargo since most loans get sold to them anyways.

4) Short sales are frustrating - and can take a while to close. This is because the lender must approve the sale and they can reject it.

5) When shopping for a home, you will simply have to do research in the areas you are looking -- see what recent sales in the neighborhood are like. Get a home inspection and include in the contract that the inspection must be clean.

Here's a good guide to look through as well:

http://www.quickenloans.com/blog/wp-content/uploads/2012/03/13.12_P_ZING_Homebuying_101.pdf

Please let me know if you need anything additional. If not, please rate positive.