Are you considering Buying a Home or a Property anytime soon?
Dated: March 7 2022
Thinking about buying a Property?
3 Initial Steps Before Searching Online
Are you thinking about buying a home anytime soon? The first thing you might do is open a real estate search app and browse for houses… it makes sense right? You want to know what’s out there!
But then you see it the perfect house in the perfect neighborhood, with the perfect yard and you’re already imagining how your furniture will fit in the living room.
“Who should I call to request a showing? “
“And what do you mean I can’t make an offer without a mortgage pre-approval? “
“And I’m only pre-approved for how much? But that’s less than the asking price!”
That property you just found online might be starting to feel less like a dream home and more like a nightmare...
If you want to avoid the heartbreak of losing a house because you’re not ready, take these three very practical steps before you start searching online.
Step #1: Assess your Personal Finances
Outline a detailed household budget of all expenses including, utilities, student loans, child care expenses etc.
How much of that budget are you comfortable spending on a future housing payment?
How much do you have saved or can you save for a down payment?
Have you factored in homeowners insurance and property taxes?
What about home maintenance costs?
Does buying a home make sense for you?
What is the housing market like in your purchase area?
What is the rental market like?
A seasoned realtor can help you answer these questions.
Step #2: Find a lender
A chat with a mortgage professional can give you a lot of insight into how much house you can reasonably buy. Knowing what the monthly payment on a certain amount will be can help you stay within your budgetary comfort level and eliminate surprises later.
There are a lot of products on the market that could affect your monthly payment and down payment, and these are all dependent on your personal financial situation. Taking the time to speak to one or more lenders, finding out what they have to offer, and getting your pre-approval letter arms you with the knowledge to see only houses you can afford and make a quick offer when you find the one you love.
Remember, a pre-approval letter is not a sign of how much house you can afford, it’s a statement of how much a lender is willing to loan. Keep your budget in mind as you figure out how much house your monthly housing payment can buy.
Step #3: Hire a realtor
Your realtor is more than the person who opens doors! They will be the person negotiating your purchase, helping you navigate the home inspection, mortgage and appraisal processes, and can be a great resource for advice about the housing market in your area.
An experienced and knowledgeable realtor can make all the difference between a deal closing smoothly and being a nightmare. If you hit a roadblock in your deal, you want someone who can say, “Don’t worry, let me handle this”!
Once you’ve got a good understanding of your budget and professionals to help you on the way, you can feel free to crack open the laptop and start browsing! You know what you can afford, you know who to call when you see something you like, and you know that if you want to put in an offer, you won’t have to wait days for your pre-approval letter to come through!
Are you ready to talk? We are here to help you.
Call me for homes in the San Diego Area : 619.728.1201
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Thinking about buying a Property? 3 Initial Steps Before Searching OnlineAre you thinking about buying a home anytime soon? The first thing you might do is open a real estate search app and