Step # 1 Are You Ready?
One of the keys to making the home buying process easier and more understandable is planning. In doing so, you'll be able to anticipate requests from lenders and a host of other professionals.
Do You Know What You Want?
Whether you are a first-time homebuyer or entering the marketplace as a repeat buyer, you need to ask why you want to buy. Are you planning to move to a new community due to a lifestyle change or is buying an option and not a requirement? What would you like in terms of real estate that you do not now have? Do you have a purchasing timeframe?
Whatever your answers, the more you know about the real estate marketplace, the more likely you are to effectively define your goals. As an interesting exercise, it can be worthwhile to look at the questions above and to then discuss them in detail when meeting with your agents Richard and Karri Christensen.
Do You Have The Money?
Homes and financing are closely intertwined. The good news is that over the years new and innovative loan programs have evolved which require less down payment. In fact, a number of programs now allow purchasers to buy real estate with little to nothing down.
In addition to a down payment, purchasers also need cash for closing costs (the final costs associated with closing the loan). Several newly emerging loan programs not only allow the purchase of a home with no money down, but also underwrite closing costs.
Not everyone, however, elects to purchase with little or no money down. Less money down means higher monthly mortgage payments, so most homebuyers choose to buy with some cash up front.
As to closing costs, in markets where buyers have leverage, it may be possible to negotiate an offer for a home that requires the owner to pay some or all of your settlement expenses. Your agents, Richard and Karri, will help you with this step.
Is Your Financial House in Order?
Those great loans with little or nothing down are not available to everyone: You need good credit. For at least one year prior to purchasing a home, you should assure that every credit card bill, rent check, car payment and other debt is paid in full and on time. Your agents, Richard and Karri, can recommend an excellent lender that you can talk with and will answer all your financing questions.
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