Saturday, November 3, 2018
By Israel Finley Ramos
Your First Home Purchase

Your First Home Purchase 


This blog is for all who wish to buy their first home. Now, I don’t limit the terms, conditions or principals to the first home purchase. The truth is, all applies to anyone interested in the simple rudiments associated with a successful home purchase, regardless of home purchase experience. 

I’ve practiced real estate since 1983 after graduating from Arizona State University the previous year. My major was Economics and must admit I had the hardest time with the high level of math involved in the analysis of all things economic. Simply put, I did not so good. 

But real estate is a no brainer. Do you want to own or rent the place you live in. I think most want to own and build equity and pride in the place they spend most of their living hours as opposed to paying down the principle mortgage (purchase money) taken out by their landlord. I believe we all want to use our hard-earnt money as prudently as possible but giving it to your landlord to enrich his life is not the way to do it. 

So, how do you by your first home and what barriers, as they say in economic circles, to securing the tools necessary to your first home purchase? 

Credit, purchase money, a secure job, a little money to put down and a real estate agent and loan officer convinced you have what it takes to buy a home. Now credit is what I describe as a financial intermediary's faith in your ability to pay back the “purchase money” you need to purchase your home. 

One way we convince this real estate agent and lending institutions of your credit worthiness is through a demonstrated consistent employment history. Some say two years is enough but that could change if you have other factors working against you, i.e. slow pays on your credit cards, little or no savings in your bank account, negative public records indicating bankruptcy, divorce or criminal offenses, etc. 

The first-time buyer has their best option to successful purchase money through government financing as found with FHA and VA instruments. Regardless, you still must convince, demonstrate your credit worthiness non the less. Success is easier here because of less stringent qualifying requirements. 

If you can demonstrate all the above to a hard-working real estate agent via an experienced loan officer, you are well on your way to owning your first home.