It is that moment! The glitz and the glamour of the wedding day is long gone! You had the party, the gorgeous dress, the monogram wedding cake toppers, the bridal accessories – you had it all and for a night you were the princess in a fairy tale. You go on your honeymoon and return to reality a few weeks later. You are ready for a change. A new home that you and your new spouse can call your own. This can be an experience to dread – or one to enjoy – it is up to you!
For first timers who want to purchase a house, you don’t have to be anxious and worry about different kinds of processes and policies. It may take some of your time when it comes to the processes and requires lots of effort – but it will be one of the most rewarding experiences ever. Your house will be your greatest investment and asset, also it is the best decision that you will ever make.
Remember, it is much better paying a monthly mortgage than just paying or renting on apartments. By owning a home you are not just investing for yourself but for your family as well. The possibilities of owning your very first home is plausible with the help of the US government housing services and proper decision making. Of course, you need proper understanding and knowledge when it comes to loans in order to avoid your house from getting foreclosed. Below is a simple guide to the definitions of some of the most common types of terms you may hear while home hunting.
There are several types of foreclosure policies. Foreclosure happens when the borrower is no longer able to pay the remaining balance of the house. The lending company may take some necessary actions in order to cover the borrower’s debt through the use of foreclosure.
Judicial Foreclosure agreement
The house is properly supervised by the US government or by the court. Under this system the lender may take some lawsuits against the borrower.
Non-judicial foreclosure agreement
The agreement is using a deed of trust. This process actually involves selling the property without any supervision by the government. The process is easier and faster rather than judicial foreclosure agreement. Instead of the use of mortgage, the clause used in the terms and policies is the deed of trust.
First time homebuyers
Engaging with US government offices is highly recommended when purchasing a house through the use of loans. You can seek some help and advices from HUD or (Housing Urban Development). HUD will ensure your home mortgage loans. This government office conducts housing quality and appraisal in order to make sure that the lender will not over price the house to the borrower. They also make sure that the terms, policies and grant deed agreement are in favour of both parties. HUD will inspect the house you want to purchase to ensure that the house meets the requirements of the American government and with acceptable criteria.
Housing quality standards
HUD obliges different requirement points for approval; this includes the bathroom, kitchen, security, surroundings, electricity and water supplies, accessibilities, sanitary condition and more. Appraising a house is not all about the size and the materials that have been used. HUD will make sure that the house is safe for living. If the house is below the standards, it may decrease the price tag or probably disapprove the house itself. By this way, you can ensure that you are going to live in a home that guarantees safety, security and enjoy for the rest of your life.
Applying for HUD
You have the option if you want to purchase the house titled on your name, a conjugal property or separately. Ensure that all the details you filled up on the form are precise in order to avoid any delays on the processing. Make sure that you put your present address and contact number to enable them to contact you in case of some problems. The HA representative may also require you to submit some of your information such as your employer’s or company name, address and contact number, your bank account number to verify and estimate your income, if you are renting an apartment the HA may ask also the name and address of your previous landlord.
After filling up forms ensure that you have a copy of GFE or Good Faith Estimate statement, it is preferable to have both soft and hard copies. By this way, you have the information about the closing cost and the interest of the property.
An escrow is the third party of real estate property transactions. An escrow will take care of your first half and second half taxes. They will also ensure that your property has hazard insurance. An escrow may require the borrower to maintain an escrow account in order to pay taxes and insurances.
Hopefully this will help clear up some of the basics of what you may encounter during your home search as a first time home buyer!