You don't have to be rich to own, just be smart !

Get Pre-Approved

The first step is to work with a lender to get pre-approved for a mortgage loan. Knowing how much you qualify for will narrow down your options and help direct your search. A word of caution, though: don’t overextend. Just because you qualify for a $350k loan, doesn’t mean your home should cost $350k. There are other expenses to consider with home ownership, like interest payments, insurance, and taxes and upkeep of course, such as maintenance, utilities, landscape, pest control and such.

Prioritize your Priorities

After you have an idea of how much you’d like to spend, decide on the lifestyle that suits you and your family. Consider factors like proximity to good schools, neighborhood, recreation, convenience to shopping and entertainment, and so forth. 

Start saving

Many lenders require a down payment towards your mortgage loan. It can be as little as 3% and as much as 20%. So it is important to save enough money so you have it at your disposal. You might also be able to borrow against your IRA or retirement account. Double check with an accountant or financial planner. Despite how you come up with the deposit, be sure you can prove the source of the funds. Lenders won’t accept the cash payments, and if your down payment was a gift from a generous giver, be prepared to provide a gift letter.

Understand the Cost

Please also be prepared for other out-of-pocket expenses during the home buying process. You’ll need money for closing costs  (attorney fees, insurance, HOA etc.), for a home inspection, and later for moving expenses, furniture, utilities etc. 

Credit matters!

During the buying process, be extra careful with your credit. Review your credit report and check for inaccuracies. Do not open new credit accounts and making major purchases. Several inquiries can negatively impact your credit score, which can impact the loan decision and interest rate.

Hire and consult with a Pro

Work with a qualified real estate agent, one who is familiar with the ever-changing real estate market. An agent will guide you through the process (including contract negotiations), and help you make a wise choice, considering your budget and lifestyle needs. A good agent shares tips with you along the way to save you time and money.

Take Some Time

The home-buying process doesn’t happen overnight. Carve out time in your schedule for conversations with your lender and realtor, home inspections, closing meetings, and so forth. Again, take your time and be patient, ask questions. This is a big decision. Most importantly, make sure to have a good team o our side. And your team is a professional REALTOR and a good and experienced lender.

Any questions? Feel free to contact me and I am happy to sit down with you to explain in person what you and "we" have to do to make you a homeowner in 2018.

Cordially,