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HOME BUYERS
Feeling a little overwhelmed by the thought of the home buying process?
Does it seem like there are so many decisions to make
and so much information to absorb?
Let me help walk you through the entire transition from choosing your new home, negotiating an offer so that you get the best deal, explaining each step thoroughly through to closing on your new home. I will put your mind at ease by keeping you educated & informed with the most current real estate information.
I am always a phone call away for any questions or concerns!
Buying a home will probably be one of your most significant investments in life. Not only are you choosing a house and the place in which you will bring up your family,
you are most likely investing a large portion of your assets into this venture. The
more prepared you are at the outset, the less overwhelming and chaotic the
buying process will be.
When a lender reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts.If you have been moving money between accounts during that time, there may be large deposits and withdrawals in some of them.
The mortgage underwriter (the person who actually approves your loan) will probably require a complete paper trail of all the withdrawals and deposits. You may be required to produce cancelled checks, deposit receipts, and other seemingly inconsequential data, which could get quite tedious.
So leave your money where it is until you talk to a loan officer. Oh...…don’t change banks, either
When an individual’s income starts growing and they manage to set aside some savings, they commonly experience the desire to spend money. Don't make this mistake and don't make any major purchase that would create debt of any kind. This includes furniture, appliances, electronic equipment, jewelry, vacations, expensive weddings… …and automobiles, of course.
When determining your ability to qualify for a mortgage, a lender looks at what is called your "debt-to-income" ratio. A debt-to-income ratio is the percentage of your gross monthly income (before taxes) that you spend on debt. This will include your monthly housing costs, including principal, interest, taxes, insurance, and homeowner’s association fees, if any. It will also include your monthly consumer debt, including credit cards, student loans, installment debt, and… …car payments.
Why You Should Not Wait
One problem with attempting to time your purchase to the business cycle is that interest rates are generally higher during a depressed market and income may not be keeping up so fewer people can qualify for a home purchase than in more prosperous times.
People who already have a home usually need to sell it in order to buy their next one. If a "move-up" buyer wants to buy a home during a depressed market, that means they usually have to sell one during the slow market, too. If a seller wants to sell his home to take advantage of a "hot" market when prices are fairly high, they generally have to buy their next home during that same hot market. It tends to equal out. Finally, the business cycle can change over time. You would not want to wait nine years to buy a home, would you? You could miss out on a substantial amount of appreciation by waiting, and end up paying much higher prices.
HOME BUYING TIPS:
Don't Move $$ Around Before Buying a Home
No Major Purchases of Any Kind!
Should You Try to Time the Market?
