There are so many homes for sale in Everett you need to do some homework.
1) Find out what your credit rating is. If it needs improvement then work on that. Going from a 550 credit score to a 650 score is far easier than you think. In my experience going from 550 to 650 can be accomplished in under 90 days. Now sometimes it takes longer and many times it takes far less than 90 days. If you don’t have serious problems you should be able to accomplish this for less than $400. If you do have serious problems it may take $750 and up to 120 days. The only way to know is to contact someone who knows and ask them. FHA mortgages require at least a 620 credit score and many lender are moving to 640.
2) Get pre-approved for a home loan. Find a mortgage loan officer you can trust and start on the paperwork. First off rates are at historic lows. There are many paths to home ownership. The path you should take depends on your personal situation. Qualifying for an FHA mortgage isn’t hard but it does take time and energy. You will have to jump through a lot of hoops. With a quality loan officer that isn’t that hard. If your credit is acceptable a good loan office will have you pre approved in less than a week. Often I have seen buyers get qualified in 2-3 days.
3) Find a real estate agent you can trust and listen to what they say. I don’t mean to blindly follow but you should take reasonable advice. Right now there are many homes for sale in Everett. If I were buying my first home with an FHA mortgage I would look for neighborhoods in transition. This is a neighborhood where owner occupied homes out number rentals. The trend should be from rentals to owner occupied. Look at how the homes are taken care of. You will see more homes freshly painted, more new fencing, new lawns, old windows replaced, and newer roofs perhaps newer doors. Just open your eyes and really look at the homes and it quickly becomes apparent which neighborhoods are renewing themselves. Your agent should be able to tell you right off which areas are in transition. Also the first home you buy will probably not be the last home you buy. So look for a cosmetic fixer, something where just some paint and elbow grease will work. Buy at least (if you can afford it) a 3 bedroom 1.5 bath. Or look for a home where you can easily add a second bathroom. Look at how the homes footprint fits the lot. Can the lot be subdivided? Can you add a garage or play area? And always keep in mind resale value. An FHA mortgage requires a certain level of repair so they will not let you buy a real fixer.
A proven way to wealth is buying a mild fixer of a home. You then fix it up over the next year or two. Then refinancing it, turning it into a rental and buying another home to live in. If you do that there is a secret to staying out of trouble. You see when you refinance you make a statement on your loan application that you are going to live in the home as your principle residence. All you have to do is live there for 6-12 months and you have fulfilled that statement. What I am saying is you should refinance your home 6-12 months before you plan on buying another. Your loan officer and real estate agent should be able to help in all these matters.
4) Have seller pay your closing costs. If you are buying with an FHA mortgage the seller can contribute up to 4% of the sales price for buyers closing costs. For example let’s say you are buying a $250,000 home. You will need 3.5% of the purchase price as a down payment. That is $8750. Now if you don’t ask for closing costs you will need an additional $8000 to $10,000 for loan fees. A good real estate agent and / or loan officer will put in the initial offer to buy that the seller will contribute 4% of the purchase price for buyer closing costs. You will then get a “free” loan paid for by the seller. This minimizes your out of pocket expenses. Any money left over from the 4% should be used to buy down your interest rate or reduce the amount borrowed.
5) Do you have someone prepare your taxes? Or do you do them yourself? I suggest you hire a tax person and have them show you how the purchase will affect your tax return. This is wise financial planning. Many times a first time buyer is amazed at the financial impact of home ownership. Remember the 6 P’s when you do anything of import. Proper planning prevents piss poor performance.
This is a once in a lifetime buyers market. With so many homes for sale in Everett you should find a great deal. With interest rates so low you can get a great FHA mortgage. Good luck.
