Buying a new home is exciting and fun! There might also be some questions that you will have along the way. As your REALTOR, we are here to assist you through the initial steps BEFORE you make an offer on your first home!
Before making an offer on a home you need to be prepared! The FIRST step is finding a qualified professional to represent your best interests throughout the entire process. A REALTOR will know up to date market pricing, current market trends and negotiate for you during the purchase process.
The SECOND step is to make a list of your WANTS and NEEDS. This will help your Realtor search proactively for you and narrow down homes of interest in automated custom home searches.
THIRD, contact a LOAN OFFICER. Ask about loan fees, interest rates, annual percentage rates (APR), points and what your monthly payments might be based upon what you qualify for and, more importantly, what home budget you want for you and your family.
FOURTH, check your credit score with the loan officer and determine income versus monthly expenses, known as your debt to income ratio (DTI). Discussing down payment and closing costs is another important conversation to establish how much you can spend. Your loan officer will assist you with this analysis.
DOWN PAYMENT is typically between 3% and 20% of the total cost of the home. The amount you need to put down depends on your credit history, income, the cost of the home, and the type of loan program you qualify for and choose. Sources of down payment have restrictions regarding the amount that can come from gifts.
DETERMINE THE HOME YOU CAN AFFORD, with the LOAN OFFICER and REALTOR. This will be based on monthly income and expense ratios, and will be provided by your LOAN OFFICER in a PRE-QUALIFICATION and/or PRE APPROVAL letter.
CLOSING COSTS are fees paid when the home loan transaction closes and records. These include points, taxes, title insurance, escrow fees, financing costs, and items that must be pre-paid or escrowed. You will receive an estimate of closing costs from your lender after you apply for a loan.
We appreciate you and your excitement as you purchase your new home!
Call, text or email us today to start the process of purchasing your new home!
