5 things to do when you get your first paycheck
By Denise Richardson, Community Home Lending Advisor in Oakland
It’s an interesting time to buy a home, as markets across the country continue to see historically low inventory and strong demand. While competition has been intense for buyers, there are signs that the real estate market may be cooling as sales of existing homes continue to decline due to rising interest rates and other factors.
Before getting started, potential buyers should educate themselves about the process. Beyond research, buyers need to think about financing, pre-qualification, and closing costs to be in the best position to quickly move into their dream home.
If you’re one of the many Americans looking for a home, following these three steps will help increase your chances of getting an offer accepted:
Get prequalified for a mortgage
Being prequalified for a mortgage is an essential first step in the home buying process. It gives you an idea of how much money you can borrow, which will guide your search for accommodation. It also shows sellers that you are creditworthy and serious about buying the home. Finally, being prequalified speeds up your time to receive a loan, which is attractive to a seller who has multiple interested buyers.
Take stock of your upfront costs
The next step in the home buying process is taking inventory of the initial costs, which is often one of the biggest challenges for homebuyers.
While there’s no way to avoid a down payment, there are loan options available that require as little as 3% of the purchase price as a down payment for eligible homebuyers.
There are also many location-based systems supported by lenders. financial resources available to help level the playing field and help cover initial costs. Chase is offering homebuyer grants of up to $5,000 that can be used for a down payment and/or closing costs in eligible neighborhoods across the country. Qualified buyers can earn an additional $500 by getting a DreaMaker mortgage and completing a certified homebuyer training course.
Consult a mortgage advisor
It’s also a good idea to consult a mortgage consultant to guide you through some of the more intricate details of buying a home. An advisor can help you understand technical details and key terms such as upfront costs, market trends, property tax laws in different postcodes, and fair housing rules, so nothing comes as a surprise when it’s time to close the house.
A counselor will also ensure that you take advantage of resources guaranteed by lenders to help you get home on time. For example, Chase Closing guarantee, promises to close customers on their new homes in as little as 21 days or give them $5,000 in cash. The program gives buyers peace of mind knowing they can close on their new home without delay or receive compensation that can be applied to additional costs.
It’s in your best interest to shop around and find a lender who will help you find the lowest rates and fees. Prequalifying with multiple lenders can be a good way to check quotes, and it also allows you to keep tabs on how rapidly changing interest rates may impact the amount of home you’re looking for. can afford.
Although the home buying experience can be stressful, we’re here to help you find the best options available to you. There are also many other resources available, especially if you are a first-time homebuyer, to improve your knowledge of home buying, such as the Beginner to Buyer podcast, which offers potential buyers a place to get all their homebuying questions answered. Each episode features conversations with real buyers and expert guests on every step of the process, from mortgage application to closing.
Sponsored content from JPMorgan Chase & Co.