Episode 32: Tips for First-Time Homebuyers (Part 1 of 2), The Financial Aspects of Leaving the Nest with John Ragano

Today, I am joined by John Ragano of SWBC Mortgage to discuss the process of buying a home.  

From credit management to down payments to financing options, John shares the ins and outs of buying a home and how to make informed decisions about your finances. He offers his expert insights on the current state of the housing market, the benefits of homeownership, and how to navigate the home-buying process as a first-time homebuyer. 

Listen in as John shares the importance of understanding your options when it comes to financing your home, including down payment assistance programs, and low down payment loans. Plus, he offers his advice for those struggling with their credit on improving their score and qualifying for better loan options.

Thanks again for listening to "Leaving The Nest." I hope you enjoy my conversation with John!

Please leave us a review wherever you are listening and share this episode with others you know who are just Leaving the Nest. 

In This Episode:

[00:32] - Kathleen introduces the topic of buying your first home. She welcomes John Ragano  of SWBC Mortgage as her guest in part one of this two-parter to discuss the financial aspects and things to consider when buying your first home. 

[02:03] - John Ragano introduces himself and his 30 years of experience in the mortgage business, including his background working for credit bureaus and how credit scoring has become crucial in personal finances.

[03:26] - John discusses the importance of income and credit in home-buying (especially for recent graduates with student loans and the ease of getting credit cards). He offers advice for managing credit to the debt-to-income ratio when calculating affordability.

[06:58] - John suggests parents can help their children build credit by adding them as authorized users on their credit card accounts.

[07:52] - Kathleen shares her personal experience with credit cards.

[08:57] - John applauds Kathleen's responsible behavior, discussing the importance of understanding credit and being responsible when using it.

[12:00] - Kathleen discusses the importance of using credit cards instead of debit cards to prevent fraud and build credit.

[13:22] - John suggests starting with a small credit limit and paying off the balance monthly to build credit.

[14:10] - The difference between Credit Karma scores and the credit score modeling used in the mortgage industry.

[15:15] - John explains the credit scores provided by Credit Karma and the credit bureau are different from the credit score modeling used in the mortgage industry and what they look for. [17:03] - John explains why credit scores can differ from bureau to bureau.

[17:41] - John discusses why Credit Karma and other consumer-based credit scoring companies can differ significantly from other scoring methods.

[18:34] - Why simply making payments on time is not enough—maxed-out accounts can hurt credit scores even if payments are made on time.

[19:29] - Properly assessing risk and its impact on credit scores.

[22:51] - Getting pre-approved for a mortgage: gathering information on your financial situation before proceeding with the pre-approval process.

[25:31] - John shares the factors affecting a homebuyer's down payment.

[27:23] - Making a budget you can live with—it's not just about how much you can qualify for.

[29:57] - How the pre-approval process can help first-time homebuyers determine the price range they can afford so they can work with an agent to help them find properties that fit their budget and preferences.

[31:40] - A good investment opportunity; consider the potential rental income when purchasing a home.

[35:10] - John talks about the different types of loans available for home buyers, the down payment options, and the various down payment assistance programs offered by different states.

[37:09] - John advises listeners to speak with a lender to learn about the costs and qualifications for buying a home and be bold and ask questions about the process.

[38:33] - John emphasizes the importance of not buying into the noise and not being intimidated by the process. He shares that helping first-time home buyers is the most rewarding part of his job.

[39:58] - Kathleen shares the importance of using resources to achieve goals and encourages listeners to contact John if they have any questions.

[41:32]  - John adds that people who have had credit issues in the past can also talk to a lender and build a plan to improve their credit score instead of trying to fix credit on their own, as lenders have models that can help facilitate a better program.

[42:47] - To find your next job, visit us online at rocsjobs.com. If you are a business in need of help staffing entry-level positions in your office, please reach out to Kathleen directly at [email protected]. if you have any comments, questions, or suggestions. Feel free to give Kathleen a call at 703-579-6677.

Resources:

ROCS Grad Staffing

Listen to Leaving The Nest Podcast 

Connect with Kathleen:

[email protected]

LinkedIn 

Call: 703-579-6677

Connect with John:

John Ragano | SWBC Mortgage 

SWBC Mortgage