Buying a home is a big emotional and financial decision for you and your family. Take some time and prepare your finances and learn about the market, your needs and wishes. Deciding the location and knowing how much you can afford, would be the biggest steps towards your home search.
I am happy to meet with you at my office or a nearby coffee shop and discuss your needs and goals towards buying a home. I can also explain how I work and some key steps in the buying process.
How to find out how much home can I afford.
Get pre-approved and get financing
Where to look for a home
How to make and offer
Just click on the search button to start your search or contact me and we can set up an appointment and discuss the process.
FAQ for Buyers
How to find out how much home can I afford?
Before you start your search you need a realistic expectation of how much home you can afford. The best way to do this is to set up an appointment with your preferred lender and get thru the pre-qualification process and finally obtain a pre-approval.
To qualify, you need a good credit, a history of savings and a ratio of recurring debt to gross monthly income of around 45 percent or less. You can get a free annual credit report each year at www.annualcreditreport.com. It’s best to have a credit score of at least 620 but the best rates goes to borrowers with much higher scores.
Whatever mortgage amount your lender approves, only you can decide what monthly payment you are comfortable with. In addition to your mortgage payment (Interest, Principal, Taxes and sometimes Homeowner’s Association Fees), it is also a good idea to budget for repairs and maintenance and enough to maintain your lifestyle and hobbies.
What’s the difference between pre-qualified and pre-approved?
Pre-qualified is just a discussion you have with your lender and it is usually done over the phone. Based on the information you provide to him he could guide you in the different types of loans available to you and he will give you an idea of how much you can afford. This does not include an analysis of your credit report.
When you are serious about finding and buying a home a pre-approval letter will show the potential seller that you are serious and can afford the home. Getting pre-approved is when the lender runs your credit report and check your financial background. Be ready to provide some documents like proof of income or W2 forms, copies of your tax returns for the last two years and copies of your bank account statements for the last three months. Just keep in mind that every mortgage program, individual lender and underwriter is likely to have their own requirements and forms.
Armed with a pre-approval letter will put your offer on top of others because they know that a trouble-free settlement is virtually assured.
If you work with me I can help you get a ZeroPlus loan offered by Keller Mortgage – This type of loan will save buyers thousands of dollars because they won’t have to pay any lender’s fees. On a typical $500,000 home the saving could be up to $7,500.
Where and how do I look for a home?
After you get your pre-approval letter you have defined the price criteria and now you should decide the location. Some important factors to consider are distance from work and family, your lifestyle, school for the kids and neighborhoods.
*Homes served by good schools have best chance of appreciating.
*Low crime rates are also a good predictor of stability or gains in real estate values.
*Look for signs of economic vitaliy – Areas with high employment, good income and a mixture of young and old people.
*How close is the home to public transportation and major highways
You can do some of the research in some of these websites –
–http://areavibes.com/
–http:/greatschools.org/
–https://www.neighborhoodscout.com/
I found a home now, how do I make and offer?
When you find that almost perfect home is best to act quickly. Your Realtor can help you make an informed decision about your offer with a comparative market analysis. A -CMA- compares the list price to recent sale prices of similar homes in the area. It should be adjusted to the conditions of the homes and market conditions. When home inventory is high, the market favors the buyers and when the inventory is low you may have less bargaining power.
The terms of the offer will help your chances of getting accepted by the seller. These are some of the factors on an offer; amount of the down payment and deposits, deadline before closing date, deadline for inspections.
Once you have decided on price and terms, your Realtor will prepare the paperwork for your review and signature and submit it to the seller’s agent.