Whether you’re a first-time home buyer or a seasoned real estate investor, buying a home is a an exciting process. However, there’s also a lot to consider when you decide to buy. So before you begin your search for the perfect property, here are four questions you should ask yourself.
What do I want?
Take the time to figure out what type of property you want to buy. From single-family and multi-family homes to condos and co-ops, there are many different options on the market and it’s important to choose the type that best fits your needs.
Figuring out the city or neighborhood you want to live in is equally important. While a property might have all of the amenities you’re looking for, factors like crime rate and proximity to freeways can impact the overall home-owning experience.
A good idea is to list out and prioritize your needs (e.g. proximity to the beach, large backyard, great school system, single or multi-level, ect.) before you begin your search.
What can I afford?
The rule of thumb is that you should never spend more than 30% of your monthly income on a mortgage payment. For a more tailored look at what you can afford, contact your lender and you can use an online mortgage calculator to see what your monthly mortgage payments would be if you bought a home today.
Don’t forget the monthly mortgage payment is only a portion of the Monty cost. Taxes, insurance and utilities also need to be factored in.
Am I financially prepared?
A few months before you start searching for a home, review your credit history and make sure it is in good standing. Get copies of your credit report, ensure that it’s accurate, and fix any issues you discover. You will need to get pre-approved for a home loan, which you will need a pre-approval letter to submit with your offer once you find the right property. Without this letter from a reputable lender, Sellers will not respond to your offer. Pre-approval from a lender is based on your credit history, debt, and income.
How do I make the best bid possible?
Do your research! Your opening bid should be based on the sales trends of similar homes in the area. So before making your opening bid, speak with your agent. They should be a local expert and know the recent sales and anything in escrow that will be closing soon.
Your agent will be able to help guide you to making an strong first offer.
Looking for an agent who can help guide you though the intricacies of the buying process every step of the way?
Please contact Sean – He looks forward to the opportunity to work with you!