There is no doubt about it. If you are an adult with
a good job, a logical mind, and an eye toward the future, you may be asking why
you are not yet a homeowner. Interest rates are low, and there are homes out
there waiting for buyers. While no one wants to pressure you, it does offer
food for thought. How would you know if you were ready?
What questions should you ask yourself before you
buy?
First, can you “show
me the money?” While there are few upfront costs associated with buying a
home, the down payment has got to be there, somewhere, sitting in a bank.
Depending on the type of mortgage you are looking at (FHA, conventional, 203K
or jumbo), you'll need between 3% to 20% of the purchase price socked away. If
the property qualifies for USDA rural or you're a veteran and are eligible for a VA loan, you may be a candidate for 100% financing. Get in touch with me and I’ll
help you see which program fits your situation.
The second question would be “have
I been good?” We're talking about credit. You don't have to be perfect, but
if your credit score is at least 620-640 or higher, you have much better odds
of being approved, with a slightly lower threshold for an FHA loan. Lenders
look at your credit score to determine if you are a good risk. That you pay
your rent-on time. Have no issues with credit cards payments or maxed out
accounts. Making car payments on time? Of
course, a steady job is key here too. You will need a two-year history in the same
line of work. It can be with multiple employers but doing the same job.
The next question to ask yourself is whether you can afford a mortgage payment.
Lenders look at your debt to income ratio. Different types of loans vary on
these ratios, so again, check with your loan consultant, hopefully that me.
What about actually becoming
a homeowner? Are you ready for the responsibility of a hot water heater
failing you, a plumbing leak flooding your bathroom, or a roof that needs to be
replaced in a few years? Your agent will recommend that you have the property
inspected by a licensed professional and receive a report on what you're
buying, but that doesn't mean you shouldn't be ready for the unexpected once
you own the home. It's no longer a matter of simply picking up your phone and
calling the landlord.
Another biggie is the question about
truly needing
a real estate agent. The answer is, yes.
It is in your best interest to have
someone representing YOU!
Trying to find a home and negotiate
the price is best left to a trained professional. It’s pretty common in today’s
market to have multiple offers on one property, this means you will be up
against another agent who has been there/done that all day long and will be acting
in the interests of the seller.
As a buyer you don't pay for the
services of a real estate agent, the seller will pay for your agent’s
commission. Sweet right, so there is no money out of your pocket for their
services.
Plus, an agent is the
neighborhood expert, advising you what you should look out for, what is
happening in the area, and whether the price being asked for the home is in a
reasonable range for values for that size/age home in that neighborhood.
So once we’ve got you pre-approved and you are ready to go shopping for a home,
ask me I’ll provide you with the name of a great real estate agent in your
area.
Thank you for visiting my blog, I encourage you to leave a comment or questions. Let me know if my blog has helped you. I would love to hear your thoughts and any ideas for future posts.
Roxy Redenbaugh
SR Loan Consultant
Branch Manager
NMLS #269926 ACMC #2225
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