First Step to Buying a Home - Louisville, KY

            Buying a home is the biggest investment most people will make in their lifetime.  For a first time homebuyer, the homebuying experience can be overwhelming.  There is an abundant amount of information to know when buying a house, which is why it is important to use a real estate agent.  The first step to buying a home, however, is fairly simple.  If you don't have the finances to pay cash for a house, then the first step will be to get pre-approval  letter from a lender.

What is a pre-approval letter?

            A preapproval letter is a document that a lender drafts up describing based on your credit score, income and assets, and debt to income ratio.  The lender will verify the information you provide and pull your credit score. The letter states that they are willing to provide a loan up to a certain amount of money and states what type of loan you are applying for.  A preapproval letter will prove to the seller that you are a qualified buyer.  In a lot of cases, a preapproval letter is  required to submit an offer on a house.  In most cases, a pre-approval letter will be good for at least 30 days.

How do I get a pre-approval letter?

            You can obtain a pre-approval letter from a mortgage company, bank, or credit union.  It is important to choose a company that is experienced with home loans so that it makes the process easier.  You will want a lender that knows a lot about the different types of loans and loan programs to make sure you get the best interest rate.

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$100 Down HUD FHA Loan Program

First off, this type of loan is not available in all areas and not all lenders are able to close this type of loan. If you are looking to purchase a home owned by Housing and Urban Developement (HUD) using FHA financing, you should ask your lender if they participate in the $100 Down Program. This program keeps more money in your pocket and makes the home more affordable. When buying a HUD home, it helps to use a lender and real estate agent that is familiar with the HUD process. This can make the transaction run smoothly and give you less of a headache. To check to see if a home is $100 down elgible, you can check HUD's website at www.hudhomestore.com.

Quick Facts about the FHA $100 Down Program

-$100 is the down payment, instead of the usual 3.5%

-Credit score requirement changes frequently, consulant a lender

-You can escrow up to $5,000 for required repairs (FHA 203b)

-FHA loans are only for owner occupied homes (No investors)

-HUD requires a good faith deposit on home ($500 for less than $50,000)($1,000 for more than $50,000)

For more information about HUD homes, feel free to contact me at [email protected] or visit my
website at ...

When it comes to energy efficiency, look for smart features and expertise to help you save energy and money and add value to your home.

1. Begin with a Right-Sized Home.

If the home you buy is simply too large for you or your family’s needs or plans, you stand a good chance of wasting energy through excessive heating and cooling costs. If it’s too small, you’ll feel cramped and uncomfortable. It’s a big investment, so seek balance and buy it “right” from the outset. 

2. Purchase Energy Star Appliances Such as Your TV, Dishwasher, Washer and Dryer, and Microwave.

And especially the refrigerator, as it alone contributes about 10 percent of the energy use in a home. Also, unplug electronics not in use or turn off power strips to avoid phantom charges. 

3. Install Efficient Lighting Such as Compact Flourescent (CLF) or LED Bulbs in Every Fixture.

Lighting accounts for about 6 percent of an energy bill each year.

4. Get an Energy Audit and Have Tests Performed to Identify Ways of Improving Your Efficiency.

You can always upgrade your heating, ventilation, and air conditioning (HVAC) system as well as your thermal envelope, which includes insulation, windows, and doors  and the seals or weather stripping around them. Visit energy.gov/energytips for more tips.