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Buying a home is, for many, the largest investment they will make.
Being prepared
is a key advantage to you in the process. Here are
some tips to help you along the way:
1. Get pre-approved for
a loan:
This is perhaps the single most effective thing you can do to put
you at an
advantage over other home buyers. You will have an
advantage over other buyers who are not pre-approved and sellers will
take your offer more seriously. Getting pre-approved is a simple
process your real estate agent can walk you through.
Many
financial experts believe that you can afford a home three times your
gross annual income. Some of the factors that go into knowing how
much you can afford are:
- Annual Income
- The amount of cash reserves you have for closing costs and down
payment
- Your outstanding debt structure
- The type of mortgage you select
- Your credit rating and history
- The interest rate of your loan
Your real estate professional will be able to take this information
to lenders and
pre-qualify you for a loan
2. Become familiar with the market in your area:
Your real estate professional is the best resource for information
about the ever changing real estate market. Up-to-the-minute
information about houses newly on the market are available at their
fingertips. Let your real estate professional know what you are
looking for and they can help you find a perfect match.
3. Choose a professional:
Having a professional real estate agent represent you as the buyer
gives you significant advantages. The agent will represent you to
obtain a price and terms for you, the buyer just as a sellers agent is
hired to represent the best interests of the seller. The buyer's
broker is your advocate in throughout the buying process.
4. Secure your loan:
Selecting a loan has many factors and your real estate
professional can take you through the process to secure a loan that is
right for you. Many things to consider are
- Conventional vs FHA or VA
- Fixed or adjustable rates
- PITI (Principle, interest, taxes and insurance)
- Private mortgage insurance
5. Choose the right neighborhood:
Finding the perfect home in the wrong neighborhood won't get you
what you want. Its important to consider things like proximity to work,
proximity to desired schools, crime rate, and the other types of housing
in the neighborhood
e.g.: condos, town homes, single family or
multi-family. Decide what is right for
you and look for houses in
those neighborhoods.
6. Submit a strong competitive offer:
Everyone wants the best home at the best price. Your real
estate professional can prepare a market analysis so you know what is
the best price for the house you want. Submit the offer as if
there were multiple offers and include a substantial earnest money
deposit to instill confidence in the sellers.
7. Get a home
inspection:
Whether you are buying an existing home or a new one, having a
professional examine the house is a MUST do. You should make sure
a home inspection is a contingency in your offer. A professional
opinion about the condition of the home could save you time, expense and
aggravation down the road. Go along with the inspector and get
your questions answer by an unbiased person. Choose and inspector
from a local trade organization or from the
ASHI (American Society of Home
Inspection).
Buyers: If you
are looking for a property, feel free to fill out the
Dream Home Finder form and I can customize your search. I will be in touch with you shortly
with a list of available properties that meet your
specialized criteria.
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