Buyer Tips and Action Plans

Buying a home is such an exciting experience.  Whether you are a seasoned home owner or a first time home buyer, finding the home and closing on the transaction requires a very detailed and organized approach.  To help you on your way, here are a few tips for you:

• Determine what your needs are at the beginning.  Take into account your lifestyle, your desired distance from work and family, the area you would like to settle into and the amount of rooms you would at the minimum need. 

• Devise a budget.  Determine how much money you would like to spend monthly on a mortgage.  Figure in the cost of utilities, HOA (if any), any outstanding loans, property taxes and property taxes.  The total figure will give you an idea of the amount of money you’ll need a month to pay for your new home.  DO NOT FORGET THAT OWNING A HOME WILL AFFORD YOU TAX DEDUCTIONS.  These will lower your overall expenses at the end of the year. 

• Speak to a Lender.  Talk to a lender, whether banker or mortgage broker to pre-qualify for a loan.   Pre-qualifying for a loan will give you a good idea of the amount of loan you can obtain and the programs that are available. 

• Determine when you will make the move.  Identify when you would like to move into your new home.  If you currently own a home, putting your home on the market in the prime selling months will help to get you into your home sooner.  If you do not have a home to sell, start looking early.  When looking, write down and let your agent know of the features that appeal to you.   We can help you narrow your search by knowing what is an attractive feature suited to your taste. 

• Do Not Make Any Major Purchases.  Credit is a very important part of the mortgage approval process.  Among other things, lenders look at assets and debt when determining a loan approval/program.  If you plan on purchasing a home, my recommendation is not to make a major purchase until you've settled into your new home.  This also is holds true once you've contracted and are in the escrow process.  Remember that your credit is checked twice.  Once when you apply and once again before your loan closes.
   
• Always Use an experienced and knowledgable Real Estate agent.  An experienced agent should always be aware of the market conditions, the lending industry changes and new terms and above all else be familiar with how to best achieve an outcome that will meet your needs and those of your lender (if applicable).