Steps to preparing to purchase a Home#40

Hello Everyone 

There many reason why I post my Subjects or how I come up with topic most of the time it is Clients or Realtor/Real estate agent that reminds me of the subject . In this case it was my wife  who ask me how does one prepare to purchase a house . So here it is step by step  before you even start  making offers.

1. Decide how much home you can afford

Generally, you can afford a home priced 2 to 3 times your gross income. Remember to consider costs every homeowner must cover: property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care if you plan to have children.

2. Develop your home wish list

Be honest about which features you must have and which you’d like to have. Handicap accessibility for an aging parent or special needs child is a must. Granite countertops and stainless steel appliances are in the bonus category. Come up with your top-five must-haves and top-five wants to help you focus your search and make a logical, rather than emotional, choice when home shopping.

3. Select where you want to live

Make a list of your top-five community priorities, such as commute time, schools, and recreational facilities. Ask your REALTOR® to help you identify three to four target neighborhoods based on your priorities.

4. Start saving

Have you saved enough money to qualify for a mortgage and cover your downpayment? Ideally, you should have 20% of the purchase price set aside for a downpayment, but some lenders allow as little as 5% down. A small downpayment preserves your savings for emergencies.

However, the lower your downpayment, the higher the loan amount you’ll need to qualify for, and if you still qualify, the higher your monthly payment. Your downpayment size can also influence your interest rate and the type of loan you can get.

Finally, if your downpayment is less than 20%, you’ll be required to purchase private mortgage insurance. Depending on the size of your loan, PMI can add hundreds to your monthly payment. Check with your state and local government for mortgage and downpayment assistance programs for first-time buyers.

5. Ask about all the costs before you sign

A downpayment is just one homebuying cost. Your REALTOR® can tell you what other costs buyers commonly pay in your area—including home inspections, attorneys’ fees, and transfer fees of 2% to 7% of the home price. Tally up the extras you’ll also want to buy after you move-in, such as window coverings and patio furniture for your new yard.

6. Get your credit in order

A credit report details your borrowing history, including any late payments and bad debts, and typically includes a credit score. Lenders lean heavily on your credit report and credit score in determining whether, how much, and at what interest rate to lend for a home. Most require a minimum credit score of 620 for a home mortgage.

You’re entitled to free copies of your credit reports annually from the major credit bureaus:EquifaxExperian, and TransUnion. Order and then pore over them to ensure the information is accurate, and try to correct any errors before you buy. If your credit score isn’t up to snuff, the easiest ways to improve it are to pay every bill on time and pay down high credit card debt.

7. Get prequalified

Meet with a lender  to get a prequalification letter that says how much house you’re qualified to buy. Start gathering the paperwork your lender says it needs. Most want to see W-2 forms verifying your employment and income, copies of pay stubs, and two to four months of banking statements.
If you’re self-employed, you’ll need your current profit and loss statement, a current balance sheet, and personal and business income tax returns for the previous two years.
Consider your financing options. The longer the loan, the smaller your monthly payment. Fixed-rate mortgages offer payment certainty; an adjustable-rate mortgage offers a lower monthly payment. However, an adjustable-rate mortgage may adjust dramatically. Be sure to calculate your affordability at both the lowest and highest possible ARM rate.

*When your picking your Realtor ask him or her to recommended Lenders , Real Estate Lawyer , Inspectors because the best Realtors have a Team in place in  which makes everything quicker and easier from start to finish.

Today is day 13 of my Gratitude Challenge. I am thankful for having a shelter / Home . A roof over my head . A warm Bedroom . I am bless Check out . if you looking to help

Questions Buyers Should Ask Themselves #2

  Buyer must work with trying to understand why they want to purchase a home ; the most important is the WHY Question . Every question from how many rooms ,bedrooms, bathrooms  the style of kitchen and Style house , garage and /or no garage has to have the why .

It’s natural to get caught up want/needs criteria and not actual meaning of why you’re purchasing Which could be many reasons for every Question . There is so much you could be reasoning for buying there you’ll be because you’re going to have a growing family because you’re just want your own place maybe it is an investment property but you must figure out the why .

Really see the Why this will make you understand yourself why you’re purchasing if it makes sense for you purchase. I’ve always heard / Read Articles the buy versus rent is better or worse to Rent or Buyer I’m here to say it’s a bunch of shit. Who cares if your rent is lower ,who cares if you buy in your mortgage payment is higher it really comes down to two YOUR why are you buying and if answer your why it’s correct wherever it is you will make a choice .

I don’t need to tell you the rent vs buy option because you because if you really want to rent you will find a way to show me how renting is better than owning in many ways it is. you really want to buy and you really look at rent as a waste of money you going to really prove that is the way because whatever you think you will prove the magic of life.

So I see this really know your why that is how you going to know yourself Question of our purchasing why you’re looking into certain location you’re looking in why you want a short commute or a long commute why you need a car don’t need a car why you picked up style house why not pick that sell house.

Also, the picture a little boy because I wanted to leave you with a little image’leave your experience at the door every time in purchasing your next home or your first time. every deal in real estate is different no deals is normal ,average, complex , hard ,seriously extremely frustrating , a little of everything and don’t let anyone tell you different. this is a beautiful time if you’re buying your first home it a beautiful time if you’re selling your first time is a beautiful time if you’re buying your first property for investment it a beautiful time if it’s your hundreds Time Buying and Selling . All a Beautiful TIME