How I Bought My First Home; 5 Crucial Steps
Are you tired of paying rent?
Are you ready to own your own home?
First off I would like to say don't get discouraged. I had written this article and had so much information and it had auto deleted. I was upset because all my hard work was gone, but I know if I did it once I can do it again. Sometimes you have to "take a time out" so you can "get over it" because I know this time around it will be better than before. There will be obstacles in anything in life and it's about the way you look at it. I consider myself an optimistic person and my saying is God will give you what you need at the right time and not what you want.
I had took on the responsibility of caring for my mother and that's when I decided we needed more space. I wanted to have a home for my family. I imagined a two story with four bedroom home, two full bathrooms, two car garage and a nice size yard. I did not get what I want, but God gave me what I need. I am so proud of what I got; a one-story home, four bedrooms, two full bathrooms, two car garage and a very large yard in a new community.
I believe God will put people in your life for a reason. I have a friend named Rodell Jefferson that gave me his business card because he is a real estate agent. I told him at the beginning I was not ready to own, but I will sure use his services when the time is right. Now that it was my time, I gave him a call eight years later and told him I was ready. I believe you should build a rapport with people and invest in them because they would invest in you.
I will say the struggle is real and we must push past all the obstacles that may come our way. I will list the steps I took to get where I am now so that you are aware you can do it too. There is so much free information on the internet. You must do your research.
Steps I took to buy my first home
1. Know your financial status.
I have been working on my credit on my own for a while, clearing things up. Some use credit repair services and that is a great tool to have. You must know what you can afford and then you will have an ideal of the type of property you can get for your loan approval.
Based off my credit, I was preapproved for a $200,000 Coventional Loan and a FHA Loan.
There are programs you can participate in to assist with your down payment and closing cost, it depends on how quickly you want to buy. Do your research for the state/county you live in or plan to move to.
Here are a couple examples:
https://www.hud.gov/programdescription/hope1
https://www.naca.com/
The mortgage officers will need to know:
Your Income, which will be analyzed; all the monies you bring in, your assets and equity will be analyzed by bank to compare with your debt to see if you qualify for a loan.
You will need 2 years of bank statements that will be evaluated by the mortgage loan originator.
The Debt is everything you are paying monthly on and owe, liabilities, etc.
The bank wants to verify your debt to income ratio to calculate the factors of your loan. It includes car payments, student loans and bills etc.
It is best to get pre-approved so that you know where you stand as far as all the documents the mortgage loan originator needs to get you approved to purchase.
The bank wants to verify your debt to income ratio to calculate the factors of your loan. It includes car payments, student loans and bills etc.
It is best to get pre-approved so that you know where you stand as far as all the documents the mortgage loan originator needs to get you approved to purchase.
You have a time window that your credit can be ran with banks to get you pre-approved. I had mine ran twice because I went to two different mortgage companies and it did not affect my score.
I researched the Internet and watched many information videos that helped me understand terms I was unfamiliar with. Here is one I found informative:
2. Find a trusted real estate agent.
My word is bond, I used my friend Rodell Jefferson and he took care of me from the beginning to the end and still check up on me. He has over 20 years of service. He is knowledgeable and answers the phone and return calls as needed. He was able to answer all the questions I had and still have. You do not have to do your process alone. You can use him too because he has connections everywhere in the Dallas Fort Worth Metroplex and throughout Texas and can direct you to people in your state because of his MLS listings if you want to buy a home or rent an apartment.
If you can do it by yourself more power to you.
Here is my information now that I became a Realtor two years after writing this article.
Alisha Monique Barfield
I researched the Internet and watched many information videos that helped me understand terms I was unfamiliar with. Here is one I found informative:
2. Find a trusted real estate agent.
My word is bond, I used my friend Rodell Jefferson and he took care of me from the beginning to the end and still check up on me. He has over 20 years of service. He is knowledgeable and answers the phone and return calls as needed. He was able to answer all the questions I had and still have. You do not have to do your process alone. You can use him too because he has connections everywhere in the Dallas Fort Worth Metroplex and throughout Texas and can direct you to people in your state because of his MLS listings if you want to buy a home or rent an apartment.
If you can do it by yourself more power to you.
Here is my information now that I became a Realtor two years after writing this article.
Alisha Monique Barfield
Email me: ambloverealty@gmail.com
3. Research the Market.
I had installed the apps below on my phone to begin searching.
Trulia
Redfin
Zillow
I had found some great locations but some were out my price range and some was a great match. My real estate agent went with me to view all the properties I was interested in. I thought I had found what I was looking for so I wrote a letter to the owners' praying they would accept my offer with the earnest money. So the wait began. Unfortunately, I did not hear anything and my agent got in contact with the listing agent and found out they had accepted another offer. I was okay hearing the news, but late that night it hurt because I really liked the setup and location. My words of encouragement to myself was God did not had that for me, so I continued to search and it seemed like I could not find the property that sparked my interest. Some were warned down properties; beautiful on the outside and needed work inside. My agent finally got a call from one of his connections and we went to go visit a model property in a new community of D.R. Horton
Here is the video of me viewing my property with my agent:
4. Make an offer.
I was excited to view this property because who wouldn't like something new. That means less work in the future plus great warranties. So I had compared the list of things I wanted in a home and it matched by 80% of the things I needed in my new home. Finally, I made an offer. I was positive this is where God intended me to be. I not only got a home, but a brand new one that no family occupied, it was built from the ground up with many warranties waiting on ME. God has what is best for us, we must continue to remind ourselves that he will lead and guide us on these paths of where he needs us to be. He will do what he says he will do if you trust, believe and activate your faith; he will bless you beyond your wildest dreams.
5. You must accept the deal.
🎉 Congratulations in advance on Becoming a New Home 🏡 Owner 👏🏽.
At closing, you will go over the documents that you auto signed on the computer. All that will be left to do will be is to initial with their pen that you accept their terms and conditions. I had to get at cashiers check for $10,000 for my down payment. I worked long 14 hour days to get my money up, but I had a purpose behind my grind. Every now and again we need to ask ourselves "why" we do what we do, so it can make us hunger for more success.
Here are the some documents I completed at my closing:
* Uniform Residential Loan Application
* HUD/V.A. Addendum to Uniform Residential Loan Application
* AIR Delivery Waiver
* Authorization to Release Info to Realtor
* Borrowers Certification and Authorization
* Business Affiliates
* Copy Certification Borrower
* Equal Credit Opportunity Act Notice
* Fair Credit Reporting Act
* FHA Important Notice to Homebuyers
* FHA Informed Consumer Choice Disclosure Notice
* FHA Notice to Homeowner
* Flood Insurance Coverage Subject to Change Disclosure
* Freedom to Choose Insurance Company and Insurance Professional
* Important Property Tax Notice
* IRS 4506-T
* Lock Disclosure Agreement
* Mortgage Fraud is Investigated by the FBI
* Occupancy and Financial Statement
* Program Disclosure Acknowledgment
* Property Tax Payment Election Initial
* Social Security Administration Authorization
* TRID Waiting Period Disclosure
* TX Collateral Protection Insurance Requirements
* Undisclosed Debt Acknowledgement
* USA Patriot Act Information Disclosure
42 pages later, I became a home owner. They gave me the keys and the house is became mine now. How exciting?
So after I signed my papers 🤝🏽 , I went to my home to pray🙏🏽 and bless 🙌🏽 it by entering in every room touching every crevasse of my home before I officially moved into it. Know that I believe in the power of prayer and anything that I touch because I am in God, it will flourish. It is such an euphoric feeling knowing that I did it own my own and use the right resources to get what God had for me. You can do the same too.
Moving can be a hassle but be proactive, once I knew my offer was fully accept I changed my address by forwarding mail from apartment to my new home.
My To Do list
* Call your electric company for best rates in your new area, luckily I had the best rate because I was an existing customer.
* Call your gas company.
* Call your current renters insurance to see if the have a plan for you...I had to switch from Elephant Renter's Insurance and got a great deal from Progressive, a Home plus Auto bundle for my home owners and two cars. You can get flood insurance if you feel you need it at any time. I am not in a flood zone so I opted out of it. The insurance agent explained thoroughly the pros and cons. You must have home owners insurance before closing. I had double coverage before the policies expired and the new policy had started. They companies give you windows for the moves and they were very understanding of changing residents.
* Call your electric company for best rates in your new area, luckily I had the best rate because I was an existing customer.
* Call your gas company.
* Call your current renters insurance to see if the have a plan for you...I had to switch from Elephant Renter's Insurance and got a great deal from Progressive, a Home plus Auto bundle for my home owners and two cars. You can get flood insurance if you feel you need it at any time. I am not in a flood zone so I opted out of it. The insurance agent explained thoroughly the pros and cons. You must have home owners insurance before closing. I had double coverage before the policies expired and the new policy had started. They companies give you windows for the moves and they were very understanding of changing residents.
I had move into my house on Christmas Eve the best 🎁🏡 present I ever gave myself. The move was 40 miles away from my apartment into my home; from being a renter to becoming a home owner. I do believe the further from the city you are; you will get more house for you money.
I have to share my story. Remember a delay is not a denial, who would have known the government would shut down for 35 days the day after I closed. Read how I was affected below;
https://www.marieclaire.com/politics/a26028265/government-shutdown-airport-employee-true-story/
https://www.instagram.com/p/Bsxnbv7geAs/?igshid=3m6m7uc46ird
I pray that you enjoyed this read because it is a blessing to share my experience with you so that way you are aware of what you are getting yourself into.
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