How You Can Buy
Here are six ways buyers can take advantage of today’s real estate market.
Be realistic. Set your sights realistically; don’t expect to move directly into your dream home in the most expensive part of town. Get started in the homeownership door by buying a modest place, modestly priced – in a good location. Improve your home as you can afford to; and/or let your equity build to help you buy the dream house in the dream location later.
Closing Cost Help. If you haven’t been able to save for a down payment and closing costs, consider:
•Negotiating a gift, secured loan or shared-equity arrangement with parents or other people looking for a good investment.
•Selling something of value – with the realization that you’ll be able to replace it later.
•Penalty-free early withdrawal from your retirement for a down payment.
•Financing the closing costs, if your lender agrees, or getting help from the seller.
•Using a tax refund, a company bonus, or your lottery winnings (ha ha).
•Borrowing on your life insurance … liquidating stocks and bonds.
Pre-Approve. “Pre-Approve” yourself as a borrower by calculating what price home you can afford. Generally (depending on lender and type of financing) lenders consider your total basic monthly affordable housing cost – including mortgage principal and interest payments, real estate taxes and insurance payment. Your affordability is based on a percentage of your gross monthly income. Or, with additional long-term debts included, the ratio may increase up to 48%. Remember: Some lenders adjust these limits, based on their assessment of your financial situation and the loan plan you select. As a pre-approved buyer, you’ll have an advantage over other buyers who aren’t, when sellers are considering purchase offers.
Financing Options. Get acquainted with the various kinds of loans available: fixed rate, adjustable rate, government-backed loans (FHA and VA), assumptions, blended loans, and more. (Terms and interest rates vary considerably – among loans and among lenders; these factors, along with your income and length-of-ownership expectations, must be weighed – and Tim’s here to help you do that.)
FHA loans, for example, allow first-time buyers to put as little as 3.5% down.
Shop For A Lender. Of course, you want the best terms you can find. If you run into inflexible qualification requirements, don’t be discouraged. Some lenders are simply tougher than others. Tim can help guide you through this. In general, look for these characteristics in a lender:
•Loan programs explained plainly and simply.
•Attractive rates based on your circumstances
•Loans processed quickly and accurately
Set A Consultation Appointment With Tim. There are significantly more details involved in buying a home than are outlined here. If buying a home of your own, and you would like professional guidance and counsel, let Tim help you get started with the home-buying process. It starts with just a call (or text) - 858-354-2354. Thank you … And look forward to helping you find that special place to call HOME!