My Team and I are based in the Austin and Highland Lakes areas of the Central Texas Hill Country where affordable housing is still available, so we are fortunate to have many potential first home buyers. Recently, one of my buyer's agents, Brooke, and I worked with a First Time Buyer in the Austin area.
Let's call our Buyer, John. John and I had spoken about 1 year ago about his desire to buy a property, but at the time, John felt he many have some credit issues. So, we talked about it, I sent him to a mortgage broker who pulled his credit and we all identified the problems together. After some discussion, we let John know a few things that he should do over the next 12 months in order to improve his credit rating and his chances of qualifying for a loan with a good rate.
When we work with a buyer, we feel that our mortgage professional is part of our team as we all work together towards a common goal - finding a home for our first time buyer, getting them qualified and starting them on the path of Home Ownership!.
Over the next year John improved his credit rating, cleaned up a few things that needed to be removed, paid his bills on time and didn't over-extend himself with respect to credit...in other words, he didn't keep buying a lot of high ticket items on credit (car, tv, stereo, etc) that would have impacted his credit rating or available credit. After the year passed, John had raised his credit rating to about 640, which is a number that our local lender could work with.
John completed an application and received a pre-qualification letter - an important piece of paper to have, particularly when you are a first time buyer. We decided that an FHA loan was the best option with 3% down and our plan was to get the Seller to pay maximum closing costs. Our search for the perfect home began! Of course, we talked about what was important to John - location, size, type of property, ideal price, etc. We had a basis to start with.
We started sending listings to John by email so he could review them and he would do the occasional drive-by if he thought he might be interested. Eventually we came up with a short-list to go view. We chose a day, made appointments and started out day. It was clear after a few showings, that John's "ideal" home was getting more refined as we looked. By the end of the day, both he and Brooke (buyer's agent) had a good idea of what would work for him.
There was one condo property that stood out from the rest - it was a recently converted apartment unit close to downtown that was refurbished and basically "brand new" - new appliances, new flooring, new look totally. The price, however, was right at the upper edge of John's price range. So, again, we sat down and calculated what payments would be, closing costs etc. We prepared to make an offer, knowing that it was important that we get some concessions from the Seller to pay for closing costs.
After careful consideration, John decided that even though this was his "ideal" home, he was uncomfortable with putting himself at the top of his range. He was concerned with maxing himself out and being worried about every penny. At that point, we knew we had to fnd a home that had a slightly lower price tag so he could feel good about his decision. Remember, if you are the buyer, you should be in the driver seat. Ultimately, it is you who will make the monthly payments, not your realtor! You should feel great about your decision.
We searched some more and broadened our search area slightly. A great property emerged that we thought John would love and the price was right. It was a great 1 story condo unit with a fenced patio, vaulted ceilings, in a community with excellent maintenace, beautiful trees and a community pool. John and I went to look at the unit. It was love at first sight!
By listening to what was important to my Buyer, both in his needs and wants and accessing his criteria, we only wound up looking at only 7 properties before this one was found.
We made the offer, it was accepted and loan processing began. Yes, it is tedious, yes, you have to provide a lot of information, and yes, it might even feel invasive. But, the rewards are so worthwhile when you move into your very own home! It's a new beginning and the start of building equity for your future in a property that is yours to enjoy.
Brooke & John worked hard over the next 45 days with getting building inspections, repairs done, wading through the mortgage paperwork needed etc. At last, closing occured and John was a proud homeowner in his very own home! It was a pleasure for both Brooke and I to be able to assist and help experience the joy of someone buying their first home.The Austin and Highland Lakes area offer many affordable housing opportunities, and besides FHA loans, there are special loan packages available for Teachers, Police, EMS, Fire Professionals, there are USDA loans for more rural properties and some amazing mortgages opportunities through the Texas Veterans Land Board for Texas Vets.
Visit our website at www.TexasFirstHomeBuyer.com for more information or call Brooke LeMond in the Austin area at 512-284-0799 or me for either Austin or Highland Lakes area properties at 512-422-7182. We look forward to working with you on buying your first home!
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