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Buying Houses Guide

Guide to Buying Your First Home

The purchase of a home is a process that involves many steps and decisions. To facilitate this task, this guide has been created based on the expertise of Ubicante Group’s experts. In it, you will find everything you need to know to acquire your first home.

1

Financing

It is recommended that individuals conduct a detailed analysis of their monthly expenses to establish a budget. Then, it is suggested to find a monthly mortgage payment that is comfortable based on their financial capabilities.

To ensure a successful real estate transaction, it is crucial to save for both the down payment and closing costs. Depending on the type of financing, the down payment can vary between 0%, 3.5%, or 5% for a conventional loan, and between 5%, 10%, or 20% for those with ITIN numbers, adding an approximate 2% or 3% for closing costs.

For example, let’s consider the purchase of a $300,000 house with a traditional FHA loan and a 3.5% down payment plus 2% for closing costs. The calculation is done by multiplying $300,000 by 0.055, providing an estimate of $16,500 required for the transaction.

Similarly, if you opt for ITIN financing with a 5% down payment and 3% for closing costs, the required amount is obtained by multiplying $300,000 by 0.08, resulting in an estimate of $24,000.

It is essential to keep in mind that these figures are approximate estimates, and it is advisable to confirm specific costs with the selected mortgage lender. Additionally, obtaining pre-approval is recommended, for which it is suggested to research various lender options and choose the one that best fits the financial needs of the interested party, considering both interest rates and associated loan costs. The chosen lender will conduct credit verification and request relevant financial documents, such as tax returns, bank statements, and paycheck stubs.

2

Find the Right Real Estate Agent

Finding the right real estate agent becomes a fundamental decision. In this regard, it is important to recognize a professional who not only has outstanding qualities but also inspires confidence in advocating for your interests.

3

Home Tours

The assigned real estate agent will conduct tours of various homes based on the individual’s specific criteria, such as price range, location, house size, number of rooms, among others. Coordination will be established in collaboration with the individual, adapting to their availability and scheduling appointments as needed. If the person finds a property online, it is important to communicate this to the agent so they can get an idea of what is being sought.

4

Submit an Offer

Once you have found the right residence, you will be provided with a recommendation on the amount to offer, considering recent comparable sales in the area. The agent will also handle discussions on other aspects of the contract, as well as possible concessions, adapting to the specific context.

5

Deposit and Option Fee Delivery

The designated real estate agent must make the delivery, on behalf of the client, of two fundamental elements: A) The deposit, consisting of the funds that the buyer places in the title company, thus demonstrating good faith in relation to a real estate contract. B) The option fee, representing the amount paid by the buyer to the seller to secure an option. The option period gives the buyer the ability to rescind the purchase contract for any reason during the specific period stipulated in the agreement.

6

Conduct an Inspection

After contract acceptance, it is advisable for the buyer to request an inspection by a licensed inspector. It is crucial to carry out this process, and negotiations regarding repairs should take place during the option period. In case of disagreement between the seller and the buyer regarding repairs, the option period provides the opportunity to rescind the contract.

7

Appraisal

Once an agreement is reached on repairs or terms, the lender requests an appraisal. This appraisal is conducted by a licensed appraiser and is an estimate of the property’s value. Lenders need appraisals to verify that the amount borrowed aligns with the real value of the home.

8

Closing

In the event that the home value matches the loan amount, no additional negotiations will be necessary, and the closing process can proceed smoothly. During this process, the transfer of the property title from the seller to the buyer takes place. With this, the person becomes the owner of a home.

Note: The down payment amounts or other requirements mentioned in this guide may vary if the bank decides.

Enrique Cervantes

Con más de 5 años de experiencia en bienes raíces, Enrique se destaca por su enfoque en proporcionar un servicio excepcional a sus clientes. Se caracteriza por su comunicación efectiva y su habilidad para educar integralmente sobre el proceso de compra y venta de propiedades. Su capacidad para entender y satisfacer las necesidades de sus clientes le ha permitido construir relaciones duraderas y exitosas. Enrique está profundamente comprometido con el éxito de sus clientes y se esfuerza constantemente por ofrecerles la mejor experiencia posible en cada etapa de su camino en el mundo inmobiliario.

Housing Inventory

Housing Inventory