Real Estate Buying Process

Buying a Home

Home Buying Process

So you want to buy a home. Sounds like a great idea. You have a job, you've been saving your dollars, your family is growing, you've paid down your debt, your credit is where it needs to be and the market is great for first time home buyers. So whats next?

First lets go over everything we just mentioned above.

1. You have a job. Great but how long have you worked there? Most lenders want to see 2 years of income tax statements and bank statements. They want to make sure that you are a sound and safe investment. That's right, banks consider you an investment.

2. You've been saving your dollars. An FHA Loan can allow you to put down as little as 3.5% as a downpayment with up to 6% closing costs concession. This is an attractive route to go since it doesn't require 20% down like most conventional loans. Remember that anything under 20% would require a PMI or Mortgage Insurance which will be an additional monthly payment. It's key to speak to a lending specialist on this topic. You also need money for a Property Inspection, Attorney Fees and Appraisal fees.

3. So your family is growing or you plan on growing your family in the near future. This topic is important because you really have to determine how big you want your family to be. If you plan on having one child then maybe a 2 bedroom is enough. If you are planning on having more than one child then you have to pre plan how large of a home you want to buy.

4. Paying down your debt is key to maintaining a strong credit score. Lenders tend to be hesitant when they see a person carrying a lot of debt and looking to buy a home. How much is to much you're asking? Well if you have a $1000 credit card and your balance is $900 then thats a 90% debt to credit ration and that's bad. Most lenders like to see you carrying no more than 20% debt to credit ratio. Credit diversity is also important. Lenders like to see that you have been successful at managing many different kinds of credit like credit cards, car notes, a previous mortgage, student loans etc.

5. Do you know your credit score? Make sure you stay on top of your score so that you can determine if its accurate and you are not missing any mistakes. Identity theft and credit inaccuracies are common but if caught quickly they can be corrected.

6. It's a Buyers Market. Interest rates are low and the prices of homes are the most affordable than they have ever been. This makes for a great opportunity for those who are ready to make a purchase. I like to say its like when you get a coupon in the mail for 20% off your favorite retailer what do you do? You rush to the store. Well nows the time to make a purchase of a home.

Now what's next? ทาวน์โฮม จตุจักร

1. Speak to a lender and get Pre-Approved. a Pre-Approval shows a seller and their agent that you are a Ready Willing and Able buyer. They will take your offer serious. I have seen buyers make an offer without a pre approval only to see their dream home scooped up by someone who offered a little less but was pre-approved. Don't let that happen to you.

2. Speak with a Realtor that specializes in Buyer Agency. A buyers agent is someone who represents you in the purchase process. They do all the leg work and help you negotiate a great price for your home. Also Buyer Agents don't charge the buyers for this service since its standard for the final commission to be split between the Listing Agent and Buyers Agent.

3. Get a Real Estate Attorney. You want someone who understands Real Estate. Think about it, you wouldn't have your dentist perform brain surgery right?

4. Find a Property Inspector, Appraiser, Title Insurance, and Home Insurance.

5. Now that you have your team together you can move forward with confidence and find your dream home.

Thank you for taking the time to read this article. Real Estate is always in a state of flux, that is why I will be providing more articles on various topics that can be useful to those who are looking to buy or sell or even fix up a home.