HOMEBUYING TIPS

BUILD YOUR TEAM

Hire an agent.

  • This is a major purchase and you want a professional guiding you through this process. 

  • A real estate agent can often send you new listings prior to these homes officially hitting the market.

  • An agent can advise you on overpriced listings and help you properly negotiate the home price.

GET PRE-APPROVED WITH YOUR LOAN OFFICER

​​There is a big difference between being pre-qualified and being pre-approved.

Being pre-approved means a licensed loan officer has reviewed all of your financial information and has determined with you the price range in which you can afford and the amount they will lend you.

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  • This is crucial. There is no need to waste time looking at homes you cannot afford to purchase.

  • This also give you the opportunity to shop interest rates to ensure you are getting the best deal.

THE DOWN PAYMENT - DO NOT DRAIN YOUR SAVINGS

Having 20% down payment is not required.

  • There are many programs where you can put down as little as 3.5%.

A common mistake a lot of first time homebuyers make is using all their savings on the down payment. 

  • If you use all of your cash on hand for the down payment then you have no emergency savings to fall back on. 

  • There are down payment assistance programs available that will allow you to receive a down payment assistance loan while keeping your money in savings. Ask your loan officer about the Chenoa Fund Program

FOLLOW A ROADMAP TO SUCCESS

Do not make any large purchases.

For the 3-6 months prior to buying a home, do not make any large purchase.  Your lender needs to see that you are reliable in order for you to get the best loan possible.

  • If you have amassed a large amount of credit card debt, furniture loans, incurred debt for appliances, or bought a car, this could significantly change your credit rating. 

Be clear about the home AND neighborhood that meets your needs.

Finding the perfect home in a neighborhood you do not like is a recipe for disaster. Where the home is, is as important as the home itself.

  • Ask your real estate agent about the crime statistics and school ratings of any home you are interested in.

  • Visit the neighborhood often to get a true feel for it.

DO NOT MAKE PURCHASES BASED ON EMOTION

Buying a home must be a rational decision, not an emotional one.

  • This is one of the largest financial investments you will ever make.

  • Ignoring major issues with the home because you love the backyard is not going to yield long term happiness.

  • Speak with your real estate agent about your needs versus your wants and make a list.

    • Be rational about your list and ensure any home you make an offer on has all of your “needs” met.

Stick to your budget – overpaying because you have fallen in love with a home will lead to unhappiness in the long term. Being able to comfortably afford your home must remain a top priority.

STAY THE COURSE

  1. Buying  a home is a process that takes months – anticipate this and try not to be frustrated.
  2. You will likely have several back and forth negotiations with the seller – this is very normal.

  3. Remember to keep the end goal of being a homeowner in mind every step of the way! 

ROADMAP TO HOMEOWNERSHIP

Prequalify


  • Meet with your loan officer
  • Review your credit report, income, expenses, and bank statements
  • Determine source of down payment
    • Chenoa Fund offers zero down programs for down payment assistance
  • Determine how much home you can afford
  • Pre-underwrite your loan for an approval




House Hunting with your real estate professional


  • Discuss the type of home you would like, including style, size and location.
  • Your agent will schedule showings for you to find the perfect home!




Purchase Contract


  • Your agent will prepare a contract based on the price and terms you choose.
  • Negotiations – it may take a few times of back and forth with the seller!
  • Seller accepts your offer!
  • Provide an earnest money deposit to your real estate professional




Finalize your loan


  • Final underwriting – you may be asked to update your paystubs and bank statements for a final review.
  • Appraisal and Inspection – you may be required to pay these fees up front. Your realtor will advise you.
  • Final loan approval – Wahoo! You are almost finished!




Closing Documents


  • Both you and the seller will sign the final loan documents transferring ownership.
  • The title company will draw all the necessary documents for signature.
  • The title company will ensure the loan is properly funded and recorded with the county.




Homeownership!


  • Once the ownership transfer has been recorded and the loan has funded you can take possession of your new home!





Ready to buy? Next step.... 

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*UHOUSI Initiative is sponsored by Chenoa Fund through CBC Mortgage Agency, a federally-chartered, public purpose tribal government lender, 912 W. Baxter Drive, Suite 150, South Jordan, Utah 84095 (“CBCMA”)(NMLS#1186381). CBCMA offers down payment assistance in conjunction with its correspondent lenders.

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