Buying A New Home
Taking Out All The Guess Work
Are You Ready
For Home Ownership?
It’s many people’s dream to own their own home. However, making certain the purchase of your new home is as happy and as satisfying of an experience that it should be we first need to ensure that you’re both financially and mentally prepared for all the various responsibilities that come along with it.
There’s a common misconception that home ownership is just like renting a property, but with a few more perks such as having the power to have pets and paint walls any color you may like. This is however not the entire story. Along with the added powers mentioned homeownership comes with the responsibility of a mortgage, taxes, maintenance and various insurances you must upkeep. Preparing for the requirements of home ownership means making certain your finances are in order and they meet your expectations.
My Questions for Prospective Homeowners
Are you certain you’re ready to buy?
Home ownership is much more than just deciding what sort of decor you’d like or colors the walls will be. It’s being prepared and able to maintain your home for years to come realizing that it’s your income that will be needed for maintenance and repairs. You must be willing to take on the mantle of home ownership with realistic expectations of what rewards and benefits you’ll reap.
How much can you comfortably afford?
Knowing what you can afford and what you want are two entirely different things. Your salary can stretch only so far and overextending on your mortgage can make home ownership a burden rather than a point of pride. If your “Dream” home isn’t in your budget, that’s okay! It’s always best to make sure you’re living within your means and that perhaps a more modest home now makes sense before moving into your “Dream” home.
It can be discouraging to find that your salary won’t stretch as far as the home you want to own. However, sacrificing a huge part of your income just to pay the mortgage can very quickly make home ownership a burden rather than a point of pride. It’s better to buy a modest home now and look at purchasing your “dream home” in a few years.
Knowing your debt-to-income ratio?
Something that lenders take very seriously is your debt-to-income ratio. Your debt must not exceed 40% of your total income. That being said, your housing debt should not be more than 32% of the same. Knowing what 32% of your income can buy will also vary widely with where you want to live. In urban areas, this can mean almost next to nothing, especially in highly sought after locations. However, in rural areas what that can buy may surprise most.
What is it you want?
Knowing what you want is also very important. Do you like the idea of constant lawn care? Or what are your thoughts when it comes to cleaning gutters and other various general tasks? Are you interested in obeying rules set forth by an HOA such as specific times you’re allowed to have your garbage cans out? Answering these and other questions like them will significantly help narrow down your search for the right property for you.
We Can Help!
You need a good agent who will work hard for you. And we’re dedicated to helping you find the right home, at the best price. We want you to find the home that will make you happy and successful in real estate ownership.
When hired we want to help you find and buy your first or even second home. It’s our goal to find out what it is you want and how much you can afford. We then merge the two and show you only properties that match.
Keep your objectives in mind when visiting a home. Sometimes the idea of owning a home can overwhelm your practical sense, so keep your feelings in check. Keep a list handy of the features that you need and want in a home, and judge each home by the list instead of by details that could distract you from your goal. When you’re alone with your agent, you can go over the pros and cons of each home. We can help you stay on track while still keeping our eyes out for a great property.
Engage the services of a good real estate lawyer. We can recommend several lawyers in the area who might be a good fit for you. Interview them to ensure that you get someone you can work with. The legalities of transferring land ownership can be dodgy, and a lawyer can be your best defense against future legal troubles. A good lawyer can charge several hundred to over a thousand dollars for their services, but the thousands of dollars saved in legal fees, later on, makes this a good expense.
Make the offer. This can be a maze of “buyer”, “seller”, “chattels”, “deposit”, and “completion”. We’ll be happy to prepare the paperwork and go through it with you before submitting it. Remember, the seller may reject or counter your offer, so even at this late date, avoid setting your heart on the home you hope to own. You’ll probably have to write a deposit check to the seller’s broker that proves the seriousness of your offer.
Get all necessary inspections done. A home inspector will check for signs of harmful materials like asbestos, lead paint and mold. They’ll also check for evidence of pests, faulty wiring and leaks. This is a crucial part of the home purchase. Not getting an inspection done means that you could be stuck in a home with a bad case of black mold and no recourse other than to pay for its removal. Inspections will cost a few hundred dollars, but again, this is more than worth it in the end. There are several inspectors in the area that we’d be happy to recommend.
Do a final walkthrough before closing the deal. We’d be happy to do this with you to make sure that everything agreed upon is completed prior to the final signing.
From the first interview that determines your requirements to the moment that you receive the keys, we can help you with the complicated process of buying a home. Don’t hesitate to contact us to find out more about how we can make the home buying process easier!
Is there a cost No, it does not cost you anything to use me as an Agent.