There are a lot of questions to be answered when you start to think about buying a home. A couple of the more important ones are:
Should I use a real estate broker?
Answer: Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. As a real estate professional I can guide you through the entire process and make the experience much easier. I am well-acquainted with all the important things you'll want to know about a neighborhood you may be considering, the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. I will help you figure the price range you can afford and search the multiple listing services for homes you'll want to see. With immediate access to homes as soon as they're put on the market, I can save you hours of wasted driving-around time. When it's time to make an offer on a home, I can point out ways to structure your deal to save you money. I will guide you through the paperwork, and be there to help answer last-minute questions when you sign the final papers at closing. The best news is, as your buyer’s agent, my services to you are FREE. My payment comes from the home seller - not from the buyer.
How much money will I have to come up with to buy a home?
Answer: Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.
When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 - $2,000.
The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price.
Closing costs - which you will pay at settlement - average 3-4% of the price of your home. These costs cover various fees your lender charges and other
processing expenses. When you apply for your loan, your lender will give you
an estimate of the closing costs, so you won't be caught by surprise.
Ask me about the Nehemiah Program. It’s a no money down program that you may qualify to use !!
When starting the search process for a new home, it’s important to analyze your wants and needs first. Some things to consider:
· Do you have a steady income?
· Can you add a mortgage payment (or a higher loan payment) to your existing debt?
· Will you be able to make a down payment?
· Do you have time to devote to buying a home right now?
· Do you need more space?
First time homebuyers in particular should consider:
· Can you afford both the mortgage and other expenses, such as electric, water, repair and maintenance costs, homeowners insurance, property taxes, etc?
· Do you plan to live in the house long enough to build equity?
· Do you have time to take care of a house - like mowing the lawn and normal repair items.
How to Evaluate Your Needs and Wants:
Before you begin your search for the perfect home, it is important that you prepare a
realistic “Shopping List” so as to narrow down your choices of properties. This is
something that I can help you with.
Hunting for a home can be a time consuming process, especially if you have not
determined in advance the parameters of your search. Many homebuyers make the
mistake of misinterpreting a WANT as a NEED.
Examples of NEEDS:
· Enough square footage for comfortable living
· Enough bedrooms to accommodate your family
· Adequate number of bathrooms
· Eat-in kitchen
· Garage or basement for storage needs
· Lot size to accommodate children’s play area
Example of WANTS:
· Carpeting color, paint color, exterior color, roof color, etc.
· Pool or Jacuzzi (unless for medical reasons)
· Wood floors
· Bay windows
· Built-in entertainment center
· Skylights
Getting Financially Prepared
· Determine your existing debt load, including school loans, auto loans, credit cards.
· Investigate loan options with a mortgage company or mortgage broker.
· Obtain pre-qualification with a lender.
Buying and Selling Simultaneously
What do you do when you are looking to move and you are not sure which should come first - buying your new home or selling your existing home:
· First, let me know about your needs and your time-frame. I may be able to help.
· Carefully calculate your financial needs, preparing for the worse case scenario.
· Consider making a contingent sale offer … I can help you with this process.
· Decide how much time you will need to leave your existing home upon accepting
· an offer.
· Determine if you can afford two mortgage payments.
· Investigate temporary housing.
Whatever your situation, please allow me to help you make the decisions that are best for you.
For more information, or to have me help you through the buying process feel free to contact me. You may call me direct, or use the form below to submit your message.