HOME BUYING GUIDE
Making The Move
the first steps in the home buying process are:
Deciding when you want to make your move
Considering how much money you would like to spend
Thinking about the type of home you would like
Deciding where you would like to live
If you’re thinking about it, you will want to speak with a lender about receiving pre-qualification. If you choose to become pre-qualified, the lender will determine how much you can borrow based on the financial information you provide to the lender.
Pre-qualification is useful for making preliminary decisions about how much home you can afford but does not assess your creditworthiness.
You will need to fill out a loan application and go through the lender’s loan approval process at a later date. When you decide to buy a home, you will want to become pre-approved for a loan prior to beginning your home search.
Buying Vs. Renting
The Advantages of Buying Include:
Planned Housing Costs
Improvements to Your Taste
How Much Can You Afford?
Your home price range will be determined by your income, credit history, the cash you have for a down payment and closing costs and your debt. How much you earn compared to how much you owe will likely determine how much the bank allows you to borrow.
The financial rule of thumb is: your total monthly debt service, which will include your monthly mortgage, shouldn’t be more than about 36 percent of your gross monthly income. Most experts say that your monthly housing expense, including taxes and insurance, should not exceed about 28 percent of your gross monthly income.
What's In Your Monthly Mortgage Payment?
Remember, many loan quotes will only include your principal and interest. You’ll also need to factor in the taxes and insurance to calculate your total monthly mortgage payment.
Tips for First-Time Buyers
Homes Now For Sale
Demographics & Growth
may be as important to the property value as the house itself. No matter what kind of neighborhood you’re looking for, it’s important to know its history and future when you decide to buy.
Lenders used to require a down payment of at least 20 percent of the home’s price. These days, however, many lenders offer flexible home loan programs allowing you to put very little down — three percent or less of the home price. For some buyers it’s possible to buy a home with no down payment at all, or to receive help from local, down- payment assistance programs.
You’ll also need to pay for closing costs, which are costs associated with initiating a loan. These can include loan origination fees, discount points, attorney fees, recording fees and pre-paids. They often will total three to five percent of the price of the home.
Understanding The Market
It’s a question we’re asked a lot at Brandt Real Estate. Many factors determine if it's a good time for you to buy because the housing market varies over time.
Contact Brandt Real Estate today and our agents will be happy to discuss the very latest housing market trends with you.
If you have any real estate questions or need assistance in any way, please don’t hesitate to email or call, as we are always happy to help.