Are you thinking about buying a home in Modesto, CA? You’re in the right place! I’m Erin Facha with IMS Lending, and I want to help you get into the home of your dreams. Here’s a simple guide to help you prepare for your first home purchase.

Step 1: Check Your Credit

Your credit score is one of the most important factors in getting approved for a home loan. Follow these steps to check and improve your credit:

  1. Get Your Credit Report: Contact me today to start the process with a credit check.  I just need a few pieces of information to get started.  I will pull your credit, examine it, and determine if your scores are high enough to purchase.  If they aren’t, I can offer guidance to help improve your scores. 
  2. Pay Down Debts: Try to reduce your credit card balances.
  3. Avoid New Debt: Don’t open new credit accounts or make large purchases on credit before applying for a mortgage.

Step 2: Determine Your Budget

Next, you need to figure out how much home you can afford. This depends on your income and expenses. Here’s how to get started:

  1. Gather Your Income Documents: If you’re a W2 employee, you’ll need at least one recent pay stub and the most recent W2. If you’re self-employed, you’ll need your tax returns from the last two years.
  2. Calculate Your Monthly Income: Add up all your sources of income.
  3. List Your Monthly Expenses: Include things like rent, utilities, car payments, and other bills.
  4. Get an estimate of what your monthly mortgage will be: Contact me to discuss mortgage payments and what you are comfortable paying each month.

Step 3: Get Pre-Approved for a Mortgage

Getting pre-approved for a mortgage shows sellers that you’re serious about buying. Here’s what you need to do:

  1. Find a Lender: You can start with IMS Lending, where I, Erin Facha, will be happy to help you.
  2. Submit Your Documents: Provide your income documents, bank statements, and any other required paperwork.
  3. Get Your Pre-Approval Letter: This letter will tell you how much money you can borrow. And will be used by your realtor to submit offers.

Step 4: Start House Hunting

Now the fun part begins! Here’s how to make your search easier:

  1.  Make a Wish List: Think about what you want in a home. How many bedrooms? Do you want a big yard?
  2. Choose a Neighborhood: Consider things like schools, commute times, and amenities.
  3. Work with a Real Estate Agent: An agent can help you find homes that meet your criteria and negotiate the best price.  I can refer you to an agent that will match your needs.

Step 5: Make an Offer

Once you find a home you love, it’s time to make an offer. Here’s how:

  1. Determine Your Offer Price: Look at recent sales of similar homes in the area to help decide on a fair offer.
  2. Submit Your Offer: Your real estate agent will help you submit an offer to the seller.
  3. Negotiate if Necessary: The seller might counter your offer. Be ready to negotiate.

Step 6: Home Inspection and Appraisal

Before finalizing the purchase, you’ll need to get the home inspected and appraised:

  1. Hire a Home Inspector: An inspector will check for any issues with the home.
  2. Get an Appraisal: Your lender will arrange for an appraisal to make sure the home’s value matches the loan amount.

Step 7: Close the Deal

You’re almost there! The last step is closing the deal:

  1. Review Closing Documents: Read through all the documents before signing.
  2. Pay Closing Costs: Be prepared to pay fees for things like the home inspection, appraisal, loan processing, title and escrow fees.
  3. Sign the Papers: Once everything is signed and the funds are transferred, you’ll get the keys to your new home!

Congratulations!

You’ve just bought your first home! If you have any questions or need help along the way, remember that I, Erin Facha with IMS Lending, am here to assist you. Together, we can make your dream of homeownership a reality.

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