How much home can you afford?
Before you even begin looking, your first step should be to determine how much you can afford to spend. A good general rule is that a family should not spend more than 28 percent of gross monthly income (pre-tax income) on housing or 43% debt to income ratio which is your average monthly debt (loans, bills etc.) against your monthly income. Generally, lenders require a two-year, steady work history, but you may still qualify if you haven't worked continuously during that period with a good explanation and reason.
Most mortgage lenders will provide a free pre-approval, which can help you determine the home you can afford.
Get Pre-Approved
There are many Mortgage Companies with many loan officers. Usually your Real Estate Agent will know and recommend a good loan officer. It's a good idea though to contact a few different ones and find one that you feel comfortable with and offers the best rates. Once you have gone through the steps above and found a good mortgage lender, it's time to finalize your pre-approval. Make sure that your lender has thoroughly investigated your finances. Some lenders will do a basic mortgage pre-qualification that is based off of minimal questioning. This can mean problems later when you are actually under contract to purchase. A full mortgage pre-approval will help guarantee that your financing doesn't fall apart later while you are halfway into the home buying process.
Your Real Estate Professional
A real estate professional will provide you with online tools and keep you updated when new
listing come on the market. They will help educate and navigate the home buying process.
They can obtain information on properties listed for sale in the area, set appointments
for you to view homes that are of interest, help narrow choices to homes that meet
your needs, explain the local market and help negotiate with the seller.
A real estate professional will help guide you through the Due Diligence process and can
recommend and setup appointments for a Property inspection or any other
inspections or tests you feel should performed. A real estate professional will
order a preliminary Title Search on the property to verify a clean Title.
Find your Home
Once you have performed the previous steps, the next step is to find your Home.
This is the fun part of the home buying process, but it can also be exhausting.
Following these steps will help you determine a clear path to finding the best
house that fits your needs.
- Research Local Areas
- Search and tour Homes Online
- Visit select Homes with your Realtor®
- Make An Offer,
Finalizing - Get the Keys
Now that you have prepared your finances and found a home, it's time to close the transaction and get the keys! These items need to be handled in a timely manner. Your Real Estate Agent will help guide you through each step. You can use this section as a reference as you are moving through the final steps of buying your new home.
Once you are past the inspections and appraisal process, you can set up a closing time with your title company and the other party. Once both parties have signed all of the documents and the mortgage company has funded the loan, you will get the keys. You are now the proud owner of your new home. Congratulations!
