newbie questions

just getting this ball rolling in hopes of grabbing the tax credit before december. i have some beginner questions, if you don't mind.

how long does it typically take to close once an offer has been accepted?

do i need pre-approval from the bank in order to start looking & talking to real estate brokers?

can anyone recommend good information sources on eligibility for FHA loans?

are there additional grant programs (as i've heard through the grapevine) to help with closing costs?

any other good information, websites, etc. that you can recommend to someone who's just starting this process would be super helpful. TIA!

Re: newbie questions

Closing date depends on a variety of factors, so its hard to give an average. We took 60 days to close after contract acceptance; others have 30 days or less. It all depends on the banks, seller, buyer involved.

Getting pre-approval or pre-qualified speeds up the process and in my opinion is a good idea. You should know what your options are for financing, how much you can afford, and see what different price points do to your monthly payment.

FHA Loan Information straight from the horse's mouth.

There may be other first-time home buyer programs in your area to help with closing costs. We are not in NY and it is common to get seller consessions of 3-6% which cover your closing costs. Again, this varies by market.

With FHA loans, do be aware that the process to get approval on them is lengthier than conventional mortgages, and the appraisal and inspections are more detailed and strenuous than those for conventional loans. Check with your bank/lender to see if you can do a conventional loan with just 5% down. We are doing this instead of an FHA loan and we still don't have to pay PMI, whereas with an FHA loan, we would.

HTH and good luck!

Re: newbie questions

I just started looking So maybe I can help.

1. Id get pre-approved so you know exactly what you can afford. That way you dont fall in love with a home and then cant get a mortgage for that much. With the banks being crazy it is much harder to get a mortgage for what you want...many want higher downpayments.

2. Look to the town you live in for the grants. I know Babylon has down payment asst but only some houses qualify and then you have to be approved. Also check out the state website...they may have things too.

3. If you want the fed. tax credit you have to close on the house by end of business on Nov 30th. not the end of the year.....I just realized this and feel the pressure to get moving on a house.

HTH

Re: newbie questions

how long does it typically take to close once an offer has been accepted?

SO far it has been three months hope to close next month but that is because contracts were delayed.

do i need pre-approval from the bank in order to start looking & talking to real estate brokers?

No you don't but I highly suggest it since it will help guide you on what you can afford.

can anyone recommend good information sources on eligibility for FHA loans?
Eh not sure i think someone already included that, i just went to banks and got ours at wells fargo.

are there additional grant programs (as i've heard through the grapevine) to help with closing costs? Yes Suffolk County has up to 15K on dollar to dollar matching down payment, check out the county websiite, LIHP has a few programs for Town of Babylon & Town of Islip as well. We got dollar to dollar matching and closing costs assistance through the LIHP for Town of Babylon but there are certain income criteria. The only thing is it takes time to process paper work, get to the point you can put a offer on the house, etc. So your kinda cutting it close to close on a house by November but its worth a try!

LIHP

Town of Babylon - click on town initatives and it gives you the Enhanced Program which is only for dollar to dollar matching You must contact LIHP for the one that includes closing costs.