Home Buying Season Is Ramping- Up In Our Area!

Here are some helpful hints to get buyers ready:

1. Determine who’s buying the house and why.

Yes I know that sounds like an odd statement. But, consider the following scenarios:

  • You are buying a house by yourself – to live in alone
  • You are buying a house by yourself – to live in with a roommate who shares expenses
  • You are buying a house by yourself – as a rental property
  • You are buying a house jointly with a spouse – to live in
  • You are buying a house jointly with a “significant other” – to live in
  • You are buying a house jointly with anyone else – as a rental property
    And the list could go on for a while…
2. Make a wish list that breaks down must haves/ really want/ would like but no big deal
3. Determine how much house you [and your co-buyer if applicable] can afford – and get lender pre-approval
  • Take a good hard look at your debt to income ratio (how much money goes out each month as compared to how much money comes in per month)
  • Get your credit scores [and fix any lingering credit issues]
  • Determine your down payment options
  • How much will mortgage insurance cost
  • Factor in Home Owner’s Insurance costsget your ducks in a row
  • Know that there will be closing costs
Whether you’ll have a “co-buyer” or not – get your paperwork ducks in a row
  • Official Photo ID – this means if you’ve “misplaced” your driver’s license, passport or state ID card – get that fixed NOW!
  • At least 2 years of tax returns
  •  At least your last 2 pay stubs – you may even need written verification of your employment status and job description
  •  At least 2 months of your financial statements* ASK YOUR LENDER FOR A SPECIFIC LIST OF REQUIRED DOCUMENTS
Determine where you’d like your new house to be located
Find a real estate agent you feel comfortable working with
Start looking at appropriately located and priced houses whose “To Do” lists match your interest and skill level.

Being prepared is one of the best ways to get a chance to really enjoy the home shopping process!