First, you have to figure out what you can afford, where you want to live and what type of home you are looking for. Once you know all of these it is easy with help of experienced professional to find your dream home.

Once you find that dream house, your agent will write an offer with you. In that offer you specify how much money you are willing to pay, how much is down payment and how much is financed. Also, by what date you will get your mortgage, when you are going to do the home inspection and when is a closing date.

When the seller accept your offer that is when the transactions starts. You are obligated to respect all of these dates and terms, and seller is obligated to stay in the transaction with you. Seller can’t accept any other offers as long as you are performing on all conditions from the contract.

If you can’t get the mortgage by the contingency date and seller will not give you extension, you can get your deposit back. If home inspection is not satisfactory and you can’t work the differences with the seller you can also get your deposit back. If you just change your mind for no legitimate reason and decide to walk away from purchase, seller has right to keep your deposit money.
Just before closing you need to have utilities switched over to your name.

It gets little more complicated when you are selling and buying at the same time. Most likely you have to sell your current home in order to purchase a new one. This is the time when you should have experienced professional by your side. We can navigate both transactions so they close on the same day.

There are different types of mortgages available to you and you should find the one that best suits your needs. Some of them are: conventional mortgages, adjustable rate mortgages (also known as ARM), VA mortgages, FHA mortgages.

Also, in State of Connecticut you have available CHFA mortgage (CHFA stands for Connecticut Housing Finance Authority), this is very popular mortgage for first time home buyers.

Fear of being rejected for a home loan is one of the main concerns for first-time homebuyers. To lessen the stress, you should get pre-approved or pre-qualified for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage when there are multiple offers for a specific home. This makes you look more attractive and valuable in seller’s eyes.

Most lenders can pre-qualify you for a mortgage over the phone. Based on general questions about your income, debt, assets, and credit history, lenders can estimate how much mortgage you qualify for. However, being pre-qualified and pre-approved are different things.

Pre-qualification means that your credit has been pulled by the lender; you have given your information to the mortgage broker over the phone or in person, but without submitting the paperwork.

Pre-approval means that you have applied for a mortgage; you have filled out the mortgage application, received your credit report, and verified your employment, assets, etc. When you are pre-approved, you know exactly what the maximum loan amount will be. When you are pre-approved, you and the seller know exactly how much house you can afford. It gives you credibility as an interested buyer and lets the seller know immediately that you will qualify for a loan to buy their property.


Few things to remember:

Don't go on a spending spree using credit if you are thinking about buying a home, or in the process of buying a new home. Your mortgage pre-approval is subject to a final evaluation of your financial situation.

Pay your bills on time. Any late payments can negatively affect your credit score.

Even if you have accumulated enough savings, you should consider not making any large purchases until after closing. The last thing you want is to know that you could have purchased a new home and you got denied for the loan because of your urge to spend.

The down-payment amount varies depending on the type of mortgage and type of property you are purchasing.

Custom in Fairfield County and New Haven County and pretty much all the rest of Connecticut is to put 1% down initially with an offer, and additional 2% upon offer acceptance. If your down payment is more than 3%, rest of the money you will bring to a closing in form of cashier check or bank check.

In some cases, first-time home buyers can purchase a home with no money down. Although it varies from state to state, most offer government-funded programs for first-time buyers that help people buy a home with little or no down payment.

In state of Connecticut you can get CHFA mortgage with down payment assistance, where you can finance 100% of your purchase. Another option is FHA (Federal Housing Authority) or VA (Veterans Affairs) mortgage with 3% down payment.

For conventional mortgage you will normally have to put down 5% or more, depending on your qualifications and type of property. Also, depending on your qualifications, you might be able to obtain other type of financing with low down payment that will suit your needs.
Your Global Real Estate professional will be able to explain the different options available to you.

First-time buyers often forget to consider the closing costs when thinking of buying a home.
Closing fees are usually between 3-6%.

Closing costs consist of two parts:

Bank closing fees.
This includes bank processing fees, recording fees, broker processing fees, title insurance, loan origination fee, document preparation fee and others.

Prepaids
Included here are adjustments for taxes, sewer fees, escrows and others.

However, a smart buyer takes this into account before making an offer, and with some professional help, the costs can be estimated in advance.

In many cases closing costs can be included in the purchase price. If you have a knowledgeable professional by your side, he or she can negotiate the deal to have closing costs included in the price in a way that is satisfactory to you and at the same time explain it to the seller so he or she accepts your offer.
Your Global Real Estate Services,LLC agent will explain all options available to you.

When you do decide on a home to make a bid on, work with your real estate professional to get all of your questions answered first before making an offer. But don't wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.

 One of the most common misconceptions among home buyers occurs when it comes time to making an "offer" or a "bid" on a home. Many believe that even though they have put together an offer to the sellers, that their options are still open. To some degree, this is correct. If the seller rejects the offer, counteroffers it, or simply does not respond, your options are still open. You, as the buyer, can accept the counteroffer, make another offer, or simply move on.

However, if the seller accepts the offer (and you are notified of its acceptance) then a legally binding contract has been struck. There is not even the need for additional paperwork; the signed offer becomes the contract.

Basically, you as a buyer write your offer on a contract and you sign it. It then gets presented to the seller, if the seller accepts all of the conditions in the contract and signs it; it has become legally binding contract.

In Fairfield County and some other parts of state of Connecticut, there might be in some cases still being used “Offer to Purchase” or "Binder". It has been used more in the past. This is not legally binding contract and it is not being used as much, as most agents use contracts now days.

The best thing about contracts is that from day one everyone knows exactly where they stand, what their responsibilities and obligations are. The less issues and misunderstandings there are, the more pleasant and enjoyable the transaction will be for everyone involved.