Things To Know When You Decide To Buy A Home

Dated: December 28 2016

Views: 155

Purchasing a home is (for most) the largest investment people make.  Before you find yourself missing out on the house of your dreams, a little preparation can put you in the right position to have the house of your dreams.  Below are a few steps to consider.

1.  Understand your credit scores.  Find out what yours is and how to change it if necessary.  Even if you think your score is good enough, credit score may impact your interest rate or required down payment.  You are always better off with a better score when possible.

2.  Know your budget.  How much of a monthly payment can you afford?  If you choose to use a payment calculator online make sure that the one you use accounts for approximate property taxes and insurance.  Also understand your Debt to Income Ratio (DTI).  According to the Consumer Financial Protection Bureau, The maximum DTI is 43% of gross income.  

3.  Save for a down payment and closing costs.  There are many loan products that have different down payment requirements.  Which of these products that are at your disposal is based on a few factors or combination of factors.  It is important to understand that down payment will impact payment amount and total purchase price you can be approved for.  There are costs associated with obtaining financing that are passed on to you in the form of closing costs.  Understanding what these are can help you prepare for your closing.

4.  Get pre-approved for a loan.  Find the lender that is right for you and obtain a pre-approval letter.  This will show sellers that you are financially capable of obtaining financing for the amount needed to buy the home they are selling.  The pre-approval is not final approval.  That cannot be initiated until after there is a specific property that is to be purchased.

5.  Find an agent.  When interviewing agents consider a few things.  Does the agent exhibit industry knowledge?  Can They supply references?  How will they communicate with you?  Will they be your point of contact or will there be assistants and other team mates involved?  

6. Buy The house you like!!  


Latest Blog Posts

Can I Buy Or Sell A Home Without A Real Estate Agent

Today’s real estate market is one of the fastest-moving in recent memory. With record-low inventory in many market segments, we’re seeing multiple offers—and sometimes even bidding wars—for

Read More

Thai Cuisine On Parmer Lane

Eating out has been a luxury in the last year, and meeting friends even more of a treat.After working with clients on a beautiful Sunday, I met a friend for an early dinner at Thai Cuisine. He had

Read More

Is The Real Estate Market Going To Crash

While many areas of the economy have contracted, the housing market has stayed remarkably strong. But can the good news last?When COVID-related shutdowns began in March, real estate brokers and

Read More

2021 Austin Texas Real Estate Market Is A Bubble

Or is it?Elon Musk recently said in an interview: “It’s going to be the biggest boomtown that America has seen in 50 years”– Austin American Statesman February 12, 2021, and was speaking

Read More