Prospect Point Realty agents will walk you through the entire process of purchasing a home. Whether you are a first-time buyer, a second-chance borrower, or a seasoned investor, we are here to help you. We will prepare contract and escrow documents, coordinate services and inspections, and oversee clients through the closing process. At Prospect Point Realty we aim to create a seamless home buying experience. We are confident in our ability to understand your real estate goals and we will work objectively and ethically to protect your best interests. Our goal is to provide our clients the highest quality of service and care in the most efficient manner possible.

Prospect Point Realty provides:

• Benefits of home ownership

• Negotiating best pricing

• Preparing and making an offer to purchase

• Scheduling property appraisals & inspections

• Financing and lending options

• Contract & Escrow preparation

• Property taxes and insurance

• Coordination of the closing process, estimated closing costs, etc. Buying your first home

Buying a home for the first-time (really any time) is a major decision. Saving enough cash for a first home purchase, finding the right real estate agent, finding the right mortgage, and many more issues (like moving) may seem to be overwhelming. The tips below offer some advice on first time real estate purchases that, hopefully, will make your first time home buying experience happy.

Often, the biggest hurdle in the first-time buyer's purchase is cash available for the down payment and buyer's closing costs. But even this obstacle is not insurmountable. If you are a veteran, you may be able to obtain 100% financing through a VA loan. And many lenders offer 95% financing. If your income enables you to qualify for the necessary mortgage loan, you may be able to negotiate a contract in which the seller pays your purchase closing costs and adjusts the price upward so that you, in effect, finance your closing costs. But the loan appraisal will still need to support this higher value in order for the loan to close.

When shopping for a mortgage, look at the overall cost, not just the interest rate. Generally speaking, the higher the rate, the lower the number of points charged. Make sure you understand any hidden costs or special early payment penalties which could create problems for you. Look at different mortgage products, such as shorter-term fixed-rate loans or adjustable rate loans, but be sure you understand what your "worst case scenario" is if interest rates rise. Also, in many cases, a mortgage payment inclusive of property taxes and insurance but offset by tax savings generated by mortgage interest deductions (which constitute most of the payment in the early years of a mortgage) may be the same or only slightly more than monthly rent, but you will be building equity with each payment.

Getting pre-qualified

A good place to start the entire process is to visit a local lender to "pre-qualify" and establish your maximum loan amount. (A professional real estate agent can help you determine your affordability level, too, if you don't mind sharing income and debt information). This loan maximum, coupled with your available cash, will determine the price range in which you should look. You can begin shopping by researching Selecting a Community you want and need, remembering that "location-location-location" can be as important as the home itself.

As a first-time home buyer, professional real estate assistance can be crucial, and you should insist that the real estate agent work with you as a "buyer's agent" in order to be your advocate in the transaction. In most cases, this real estate agent is still paid out of the seller's commission paid at closing, so you will not pay extra to be represented by a competent real estate agent

A competent real estate agent can help you evaluate the pros and cons of purchasing a single family home, condominium, or townhouse, and what the various types of ownership mean to you. Should you buy a resale home or new construction, and what kinds of inspections or warranties should you seek in each situation? When making an offer, how much below listing price can you offer, and how does the price compare to similar homes on the market? Are you negotiating terms and other costs (home warranty, for example) as well as price? What do you do if inspections uncover needed repairs? Are there any factors related to the house or neighborhood which could create resale problems? What closing costs are considered typical? In what is usually an emotional decision, you need the counsel of a reputable, knowledgeable real estate professional who can help you buy wisely.

Once you have settled on a community and seen several homes, you will make an offer on a home you like. If you and the seller, with the negotiating help of your real estate agent, come to terms and you execute a sales contract, you will then finalize your mortgage. The mortgage company will require a home inspection and a title search. You may have to coordinate your closing date based on when the seller can purchase another home and vacate.

There are other considerations such as home warranty, private mortgage insurance (PMI) on loans over 80% (also called "mortgage insurance premium", or MIP), title insurance and repair agreements with the seller. The real estate agent will guide you through these issues and pave the way for a smooth, on-time closing. And if faced with an unfamiliar term, you can consult our online real estate dictionary.

A common mistake of many new home buyers is rushing out to the furniture and home improvement stores, buying things to fill their home once their offer to purchase has been accepted and the lender has approved the loan.

But before you go out and make any large purchases, keep in mind that there are still a few more major steps to complete before house keys are issued. The following are a few things to avoid during your home buying process:

• Stop yourself from buying things for the home. It will be tempting begin filling those new rooms with new furniture, walls with new curtains, and floors with new rugs. But it is wise to avoid making any large purchases (such as furniture, appliances, electronics, or outdoor tools until after final closing. Using your credit accounts to obtain furniture and home decorations can potentially jeopardize your credit worthiness just when you need it the most! Additionally, using cash to buy pricey items can create a problem with your lender because your cash reserve is now significantly reduced and that availability was a factor in your loan approval.

• Maintain your employment status. Most banks and lenders want to see a solid job history. Typically, changing jobs will not affect your ability to qualify for a mortgage loan, but it's best to keep as much cohesion during the loan process.

• Do not change banks or maneuver your money around. Once the lender reviews your loan package, you will likely be asked to provide bank statements for the last two or three months on your checking accounts, savings accounts, money market funds and other liquid assets. Changing banks or transferring money to another account - even if its just to consolidate funds - could make it difficult for the lender to document your funds.

• Do not give a good faith deposit directly to the seller in a FSBO purchase. As a rule, your good faith deposit belongs to you, not to the seller, until the deal closes.

• Pay attention to your lender's requirements. Although you were pre-approved for the loan, your qualification work with the lender has only just begun. In order to process your loan, you need to meet certain requirements. Your lender will need copies of your bank statements, W2s and other paperwork. It is up to you to get it to him or her as soon as possible. Failure to submit certain qualifying documents could cause you to lose your loan and the financing you need to buy your home.