Trend Setter Realty: Home Buyers Tips!

HOME BUYER TIPS

The American Dream of owning a home is alive and more so than ever. Before you get lost on that road to home ownership, consider the following tips

How much home can you reasonably afford? Lenders (Mortgage Companies) can evaluate your finances to help you determine this with 2 qualifying guideline: Your monthly housing expenses—mortgage payment, property taxes, insurance, etc. should not total more than 28% of your monthly gross income. Your monthly living expenses and any long-term debts—utilities, car and school loans, child support, health and car insurance, etc. should not total more than 36%.
What is your credit status? This info will determine the risk factor for the lender and ultimately your interest rate, minimum down payment requirement and type of loan available to you. It is best to have a pre-approval or pre-qualification letter from your lender before making an offer. This will make the seller more comfortable when considering your offer over an unqualified buyer.
What and where do you want to buy? Of course, location is the key to your search. Your realtor can provide you with an extensive list of available homes in your chosen location at your price level, but first you need to make a list of what you need in your home, what you don’t want in your home and what your dream features are. This will help the agent narrow the target to a reasonable number of properties…saving time, aggravation and frustration.
How do you negotiate your offer? Once you have found “your” future home, be sure to have your agent provide comparable sales prices to better help you make a fair offer IN WRITING. Be sure you include all the terms, commitments and promises between you and the seller. Take advantage of the option period to research neighborhood, traffic, schools, shopping and homeowner association facts as well as home repairs. The title company will coordinate the paperwork once your earnest money is in escrow.
What about Repairs? Repair negotiations require give and take by both parties. As an added precaution, have a professional inspector evaluate the house for potential problems. You may have overlooked issues. Some repairs the seller may be willing to fix, but at least you will be aware of any problems with your professional inspection report.
What about the closing? Your contract contains a closing date but always plan for the possibility of a delay. Things happen like documents or surveys arriving late. Rescheduling movers, utility connections, school enrollment, etc. can be stressful, but you must have contingency plans. The title company will try to accommodate everyone’s schedule after reviewing docs and preparing the settlement statement. Once you leave the closing table, you can experience the American dream moving into your new home!