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home is probably the biggest financial investment you'll make in your
life. Before you get started, do some homework. This handy Buyer's
Guide will show you some things to keep in mind as you're hunting for
that home of your dreams. 1. Determine How Much You Can Afford
How
much house you can afford is largely dependent on how large a mortgage
- basically, a home loan -- you can handle. Start your research by
using the simple mortgage calculators I have on my website to see
whether you can afford to pay the monthly mortgage on the kinds of
houses you have in mind.
You may even apply for a mortgage at a
lender before you start looking for a home. This is called getting
pre-qualified for a loan; it will tell you exactly how much you can
afford and may make the closing process go faster.
But, remember
that owning a home involves more than a monthly mortgage. You'll also
have to consider money you'll need to have at hand when you make an
offer, when you close on a home and on a monthly basis after the home
is yours.
Payments you may have to make when you submit an offer and at closing include:
2. Shop for a Home
House
hunting can be both exciting and frustrating. Most homebuyers see
roughly many houses before buying one. To make the search easier
and faster, nearly half of all house hunters today begin by browsing
for properties on the Internet, using web sites like this one.
Please go to my home page and click on the "Search For Homes" link and
you will have access to the same data as Realtors in the areas from
Burbank to Thousand Oaks in Los Angeles County. For Ventura
County Property information click on the other
link "Here" on my homepage. This information is up-to-date
and accurate. Other sites on the internet do not provide
up-to-date data and lag behind my site.
The Internet is a quick
way to see whether the houses that are currently available meet the
following critical criteria: in the right location, with the right
features and at the right price. If you find after your search on my
website that few properties meet with your expectations, you may want
to readjust your criteria - change the location, features, price - to
increase your chances of finding a house that works for you. If you
have any difficulties in this initial search, feel free to contact me
for assistance. Homes can become available instantly and TINA
is always the most current resource for literally up to the minute new
home listing information.
Once you know what you want, where you
want it and what you can afford, it's time to see the houses for
yourself. To help stay focused, bring with you a checklist of things
that you've decided ahead of time are important qualities of your
future home.
This might include:
- Is there enough room for you to grow in?
- Is the house structurally sound?
- Is the house in move-in condition or will it need work?
- Is it close enough to everyday needs, such as grocery stores, schools, work?
- Will you feel safe here?
- Do the appliances that are part of the sale work?
- Is the yard right for your needs?
- Do you like the floor plan?
- Is there enough storage where you can arrange your seasonal clothes and a pair of Rieker shoes?
- Will you be happy in this house in winter, summer, spring, fall?
You
may also want to take some exterior and interior photos of each house
you visit so that you can keep track of its pros and cons. 3. Find a Real Estate Professional...That's were I come in...
While
you're not required to use a real estate professional, it is a good
idea. A professional has access to a network of contacts and can draw
from extensive market knowledge to help pinpoint the right house for
you quickly.
A professional also can help you structure your
deal to save money, explain the advantages and disadvantages of
different types of mortgages and guide you through the paperwork.
4. Research Different Mortgages
There
are a variety of mortgage types available today, each with advantages
and disadvantages depending on how long you plan to live in the home,
the financial marketplace and your income potential, among other things.
A
fixed-rate mortgage is the most common. In a fixed-rate mortgage, your
interest rate and payment stay the same for the life of the loan.
An
adjustable-rate mortgage usually starts out at lower interest rates and
lower monthly payments than fixed-rate mortgages, but your rate and
monthly payments may rise and fall based on a financial index.
There
are also several government mortgage programs available, including FHA
mortgages, which are designed to help people who might not otherwise
qualify for a loan.
You may also have a choice in loan terms. There are 30-year loans and 15-year loans.
It's best to talk to TINA about your best mortgage option.
TINA may refer you to a Mortgage Broker that can discuss current market
financing packages and provide a FREE Loan Qualification.
5. Make an Offer
When you've found a house you really want, it's time to make the offer. How much you offer may depend on a number of factors: - Is
the asking price fair? Here's where the legwork you put in while
shopping for a home pays off. Decide whether this house is priced right
or out of line in the current marketplace.
- Is the house in
good condition? Is this house in move-in condition or will it need a
lot of work? Take any costs of improvement into consideration when
deciding your offer price.
- Has it been on the market long?
Usually the longer a house has been on the market, the more likely it
is the owner would accept a lower offer. Or maybe it's just overpriced
for the market.
- Is it a seller's or buyer's market? If the
houses you're interested in are being bought as soon as they're listed,
that means you've got a lot of competition from other buyers; offer
accordingly. If houses aren't selling fast, you may have more leverage
in negotiating a lower price.
Once you've determined how much you'd
like to offer, work with your real estate professional to submit the
proper information. This includes: - A complete, legal description of the house
- The amount of earnest money you're paying
- The down payment and financing details
- A proposed move-in date
- The price you're offering
- A proposed closing date
- The length of time your offer is valid
- Details of the deal
This
can be just the beginning of the negotiation process. The seller has
three options: accept your offer, counter your offer or reject your
offer. Let TINA advise you on the best way to present your offer for a
good outcome.
6. Begin Contingency Period
When
your offer has been accepted, the contingency period begins. This is
time that allows you to obtain financing, perform inspections and
satisfy any other contingencies of your purchase agreement.
Obtaining
financing might include loan approval, which will include an appraisal
of the property. Also be prepared to make your down payment, which is
usually due several days before the close of escrow.
Now is the
time to schedule a professional inspection of the property; it is one
of the best safeguards you can take before buying. A home inspector
should check (and may give you a rough price for repairs on) the
electrical system, plumbing and waste disposal, the water heater,
insulation and ventilation, water source and quality, pests,
foundation, doors, windows, ceilings, walls, floors and roof.
Keep
in mind that the inspector isn't there to tell you whether you're
getting a good deal. He or she is there to give you an educated opinion
on whether the house is structurally and mechanically sound and fill
you in on any repairs that are needed.
7. Buy Homeowner's Insurance
A
paid homeowner's insurance policy is required at closing.
TINA will help make sure your insurance company and your title
officer are working together to put your policy in effect by the close
of escrow. But, if you get your insurance agent involved early in your
home-buying process, he or she may also help point out ways to help
keep your insurance premiums lower.
8. Complete Settlement or Closing
When
the property you're buying has been inspected and you've had your final
walk-through of the property to see that all contingency conditions -
such as final repairs made by the seller -- have been met, it's time to
face the paperwork. You will be signing loan documents and closing
papers, paying the balance of your down payment and closing costs. This
is the day you get the keys to your new home. Congratulations!
Feel free to contact me any time if I can be of any service!
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