Are you still renting? Why are you building your landlord’s equity and increasing their wealth?
With mortgage rates being low… this would be a great time to invest in a home. Most people think that they cannot qualify for a mortgage, but you will be surprised. Get with your local mortgage company today and see what options are available to you. Then call me to find you the perfect home that fits within your budget and your lifestyle.
Stop paying your landlord. Every month you pay your landlord, their bank account goes up because they are building equity in their home. Why are you still not a property owner? You could be building equity in your home and increasing your wealth. Don’t hesitate, take the plunge and call me to find your home today.
For many, this may be the first time that they are purchasing a home. Home buying is a new experience and if you’ve never done it before an unfamiliar process. To make this experience less intimidating, I will advise you to get in contact with a local Realtor®. Just in case you decide to do it yourself, here is a break down of the steps that can help you in your home buying search. If you do have questions on any of these steps or need a Realtor® please, email, text or phone me.
Step 1. Get Pre-Approved for a Mortgage Loan ….this is where you find out how much money you can get to purchase your new home. This is free and a must-do if you are serious about looking at homes and making offers.
Step 2. Have Money for your Down Payment and Closing Fees … you will need to have at least 20% to put down as a down payment… for example, if you are purchasing a home for $250,000 you will need to have at least $50,000 as a down payment. This is money in addition to your loan. You will also need to have money for your closing costs which you can get an approximation from the title company.
Step 3. Write down a list of your must haves… this is beneficial to you and helps you break down areas that you want to live, what you want in a home, what school districts that you want and amenities you would like. This eliminates all the houses that you’re not interested in and you don’t feel overwhelmed with the whole process of the search for your home.
Step 3. Before you start searching I would get in contact with a Realtor®. A buyers agent is no cost to you, that’s right, they are free. You want someone that is on your side and that will negotiate for you. An agent will put together a list of properties from your list of must-haves and help you find the one that is right for you.
Step 4. You’ve found your home, now you get that offer. Once that offer is accepted by the seller’s agent you give a deposit check. This does not have to be a lot, can be $1,000 and this goes towards your closing costs. If you have a Realtor®, they will write up an offer and take care of everything else. That’s the great thing about having a Realtor®, you don’t have to negotiate or deal with the seller or the seller’s agent. Your agent acts as a buffer and takes care of everything for you.
Step 5. Your offer is accepted…now what? Schedule your home inspection. The buyer pays for the home inspector and you will definitely want one that has a good reputation. This is an important part of the process because this inspector will inspect the roof, plumbing, electrical, air condition, and heat as well as appliances, windows, pool and pool equipment. This needs to be done properly because these are expensive fixes if you buy the home and later find out that the air conditioner has a problem that was missed by the inspector.
Step 6. Waiting for Loan Approval… The bank usually gets the home appraised and they have their appraiser go out to the home. While you are waiting you should not change jobs, make huge purchases like buying a car or even purchase furniture. You should not make huge deposits into your bank account either. Any changes to your finance can delay or even result in your loan being denied.
Step 7. You are approved for the loan and now it’s closing day. You can now do your final walk-thru the morning before you go to the closing. You want to make sure that everything is clean and anything that was agreed on in the contract has been done. If not, then you will have to re-negotiate with the seller. If everything is as it should be your head to your closing.
Step 8. Your Title company would have been in contact with you throughout the whole process. You should know what your fees are…whether there is a clear title as well as closing fees. How the Seller gets their money. At the closing, the sellers are there with their agent as well as you and your agent. The title company goes over all the documents make sure you understand everything, and then you and the seller sign. You now get your keys and you head over to your new Home.
For more information on Buying or Selling homes please contact me.
When you are ready to buy your home a lender will basically evaluate your overall financial picture as well as other financial factors to see if you qualify for a mortgage. Here are some tips to help you get your loan.
Do not quit your job while you are in the process of getting a mortgage, nor change jobs or decide that this is a great time to become self employed.
Don’t go out and spend money on huge ticket items like a new car that you would need financing for. If you do this it will increase your debt to income ratio and this then decreases your chances of getting approved for your loan.
Do not go on a shopping spree for new furniture to decorate your new home before you close on your home. You maybe tempted if you found the perfect furniture but please hold off on buying any major purchase until after the closing.
Do not ….do not lie on your loan application. Do not omit any debts, if you do this it is considered to be fraud to lie on your loan application and you will be denied the loan.
Don’t use your credit cards excessively during the process. And please do not forget to pay your bill. Any changes to your spending habits may just prevent you from getting your loan.
Put aside money for your closing costs. You can contact the closing company to find out what your closing costs will be.
Do not go out and co-sign loans for anyone. This means that you are assuming debt, even if it is someone else that is making the payments. This will also increase your debt to income ratio.
Do not make large deposits into your bank account. You may have had an estate sale to get rid of things in your home before you move and made a good chunk of change. Talk to your lender before you deposit that money into your account or any large deposits while you are in the process of getting a loan.
Do not change bank accounts during the process of getting a loan. The lenders are looking at your financial stability.
If you are unsure about anything please discuss it with your loan officer