Are You Ready To Own A Home?
In order for your purchase to be happy and satisfying, make sure that you are financially prepared and educated to understand the process. Preparing for home ownership requires you to take critical stock of your finances and your expectations.
Questions for Prospective Homeowners
Are you ready to buy?
Getting pre-qualified is the initial step in the mortgage process. You supply a bank or lender with your overall financial picture including your debt, your income and your assets. The lender will then give you the amount for which you qualify for a loan. The initial pre-qualify steps allows you to discuss your goals with your mortgage lender who explains various mortgage options and recommends the type of finance best suited for your situation.
Getting pre-approved is the next step. You complete the official mortgage application and then supply the lender with documentation to perform an extensive check on your financial background and current credit rating. With pre-approval, you receive a conditional commitment in writing for the exact loan amount for a home at or below your price point. This puts you at an advantage when dealing with a potential seller because it lets them know you're one step closer to obtaining an actual mortgage.
What is a debt-to-income ratio?
A debt to income ratio (DTI) is one way lenders measure an individual's ability to manage monthly payment and repay debts. DTI is calculated by dividing total recurring monthly debt by gross monthly income.
I Can Help
Keep your objectives in mind when visiting a home. Sometimes the idea of owning a home can overwhelm your practical sense, so keep your feelings in check. Keep a list handy of the features that you need and want in a home. Judge each home by the list instead of by the details that could distract you from your goal. Afterwards, you can go over the pros and cons of each visited property at home.
Engage the services of a good real estate lawyer. I can recommend several lawyers in the area who will be a good fit for you. Interview them to ensure that you get someone you can work with. A lawyer will be your best defense against future legal troubles.
Making the offer. Now that we've found your ideal home and your pre-approval letter is ready, we make the offer. I'm happy to prepare the paperwork and go through the contract with you before submitting your offer. Keep in mind that your first offer is almost never the amount you end up paying - It's not where you start, it's where you end up.
Questions to consider: What did comparable properties sell for? Have prices been going up, or down? Are there other bidders? Beware of bidding wars. Get ready to negotiate. In a tight market where prices are rising and units are only on the market for a short time, you'll want to make an offer closer to the list price. In a slower market, units take months to sell. It's simply supply and demand.
Do an inspection. Inspecting the physical condition of a home is an important part of the home buying process. Your inspector determines the present condition of the home's major systems based on visual accessible features. The inspection focuses on the performance of the home rather than cosmetic or design issues. The home inspection is intended to identify components that are significantly deficient, unsafe or near the end of their life expectancy.
From the first interview that determines your requirements to the moment that you receive the keys, I will help you with your home buying process.
Contact me for more information about first time home purchasing.