10 Tips for Buying a Home
1. Clean up bad credit.
– Anybody would give you a car, cellphone or even a credit card but not everybody will give you a house. You have to have a certain credit score and you have to have a certain debt to income ratio to qualify for the mortgages available today.
2. Get informed about mortgage options.
– It’s good to see your loan officer but I want you to do a research of your own so you have an idea of what’s available to you. If you are a veteran, you definitely want to take advantage of those VA programs. If you have a little to know cash down maybe an FHA program or some type of subsidy program would be something you would be interested in doing. If you have A credit and tons of resources maybe you want to go the traditional way. 20% down, conventional financing, that’s what sellers love t to see. If you don’t need loan at all we go all cash and make the deal happen quickly.
3. Get pre-approved letter.
– This is the time you call your bank or preferred lender. Let them know you are interested in getting pre-approved form mortgage. You are going to see the loan officer. They’re going to ask you for a couple of documents: tax returns, pay stubs, bank statements and of course that will run your credit to make sure you meet the minimum requirement.
4. Understand all the cost.
– Understand all the cost associated with buying a home. It’s not just your down payment. There’s so much more that you have to pay for like your upfront taxes, upfront private mortgage insurance, and possible escrow fees: title fees, recording fees, deed drawing docs. You might have to pay HOA fees, supplemental property tax and of course your lender origination fees. All of those are part of your closing cost. So when you get pre-approved for your mortgage, make sure your lender estimates and breaks down the entire cost of the home purchase.
5. Choose carefully between points and rates.
– Choose between interest rate and loan origination points. Loan officer will tell you “he can give you the best interest rates”. But he will charge you little more in closing cost, upfront fees to get the loan done or he could reduce the amount of the closing cost you have to pay and give you a slightly higher interest rate. The choice is up to you but I definitely want you informed and choose carefully. Think about long-term versus short-term goals.
6. Get professional real estate help.
– I’m here to help you search for properties that meets your criteria, make sure you negotiate a good solid deal, make sure you are protected while in escrow to explain all of the disclosure, addendums, reports and inspections to you.
7. Know & prioritize needs versus wants
– You are not getting anything unless money is no object. I want you to prioritize your needs and wants at home. Make sure you get the necessities because you are planning to live there for a couple of years at least.
8. Commit to a community.
– Most people move every 5 to 7 years. That time frame is different for everybody. Maybe you are planning on being in this house for 3 years, maybe 5. Maybe this is the house you are going to retire in. But make sure you are okay with the community and you feel like you could commit there and build you and your family’s life in that area for quite sometime in the future.
9. Understand the offer process.
– A lot of times people tripped off and see stuffs on HGTV, bravo network or whatever type of internet show you are watching. They show you how real estate is sold and let me tell you, real estate doesn’t happen in 30 minutes or even an hour. It’s a long process. So I really would like for you to understand the offer process and all the steps that you have to take to make sure your offer gets presented the correct way to the seller and hopefully open up the communication lines and negotiated deal.
10. Don’t get hung up on the small stuff.
– Remember, unless money is no object, you might not get everything you want. So don’t be negative, be open to things that you can fix. You can change paint, flooring options, materials in kitchen and bathrooms. But you may not be able to change the location of the property if your budget doesn’t allow you to so. Don’t get hung up on the small stuff. You can change the light bulb, fixture. Just look at the overall structure and see if it has good bones. See if it’s something you can build on for the future.