1. Estimate What You Can Spend on a Home
Sizing up your finances early can prepare you to find the best home loan. Use a few standard guidelines to gauge your home buying power:
» Estimate two and a half times annual income.
» Calculate 28% of before - tax income for monthly debt (mortgage payments, property taxes, insurance and any maintenance costs for a co-op or condominium).
» Determine how much money you've saved for a down payment and closing costs.
» Get a rough estimate of much you can afford now using my "Calculator" link found on my "Home" page
»Start gathering relevant financial papers needed for your application and be one step ahead of the game. We will assist you every step of the way.
2. Get Pre-Approved
A pre approval is a letter from a lender to give home buyers a specific loan amount and loan type. You can get pre-approved before or after you have found a home to buy. However, most Realtors® will not take you seriously unless you are pre-approved. Additionally, they may be concerned about taking yo into the sellers home unless you are approved ( a portion of the sellers agreement with the Realtor® states they will only show to qualified buyers, you're not one until you have a pre-approval letter in hand). You may find you have additional negotiating clout if you are pre-approved while you are conducting your home search. Free Pre-Approval is available via my home page.
» Check your credit report, if needed, to make sure there no surprises.
» Apply for pre - approval using my FREE pre - approval application form link on my "Home" page.
3. Team up with a Realtor®. You will be spending a lot of time with your Realtor® so you need to interview and choose one you'll be able to spend time with. Although I'm a Realtor® (and offer great discounts should you use my service as a Realtor® as well as a Mortgage Broker) I may not be the right person for you, in that event I will offer names and contact information of others for you to consider.
» Investigate neighborhoods and schools
» Conduct a cost - of - living comparison if planning to buy in a different geographical area.
» Prioritize desired home features. Get a "Wish List" started
» Make an offer and negotiate a final price.
» Have the home inspected by a Licensed Certified Home Inspector (interview the home inspector regarding length of time in business, credentials, achievements).
4. Pre Pair To Close
» Finalize on the type, amount and conditions of mortgage you will have. Supply your mortgage Broker with all documents needed.
» Obtain your Home Owners Insurance and advise your Mortgage Broker of your Insurance Agents Name and contact information.
5. Attend Closing
» Bring to closing WRITTEN DOWN where you have lived for the past 10 years, your drivers license. If you have children regardless of age it is best to find a baby sitter, as you'll be there for an hour. This time is not exciting for children, even if your adrenalin is flowing theirs will not be.
6. Move in and celebrate But on your way to your new home stop by the County Recorders office and "Homestead" your home. Remember, they will ask if you are living there and if it is your primary residence. If the answer to any of these situations is no then you don't "Homestead" .
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