How Much Can You Afford?

Lenders recommend that you spend no more than 3-5 times your annual income on a new home. You can find many mortgage calculators online, which provide a great starting point. When calculating, don’t forget to include extra expenses like attorney fees, home inspection and appraisal costs and money for any home improvements.

Do You Need a Downpayment?

While it’s ideal if you can put a 20% down-payment on your new home, it certainly isn’t necessary. There are many ways to put down much less and with certain types of loans you may need as little as 3.5%.

We will start touring homes and weigh all the positive and negative aspects of each one. Make a list of all the things you need and want in a new home. Think about how many bedrooms and bathrooms you need. When you find the house, your next step will be to make an offer and go through any negotiations.

Once you’ve found the home you want, the next step is to make an offer. We will look at comparable properties in the area and decide on a strong first offer. Many owners price a little high expecting to negotiate so we will take that into consideration as well. Many times after the initial offer is presented the owner will come back with a counter-offer. 

As a buyer, don’t be afraid to bargain for what you want. Whether that be cost, a new roof or the whole house painted. You don’t know what they’re willing to do unless you ask.

Plan to attend the inspection and be prepared to ask any questions you have. You will receive a report of findings, but it’s sometimes easier to see the issue and hear the information directly from the inspector. After the inspection is complete, decide if there are any pressing issues you want to negotiate with the seller. Be careful to not be too picky, but also not let major concerns go unaddressed.

Your lender will require an appraisal of the home before finalizing the loan. The home appraiser will take into account the neighborhood, housing market, age and condition of the home, etc. A property title search will ensure that the sellers are truly the owners of the property and any leins or judgments are disclosed.

You will want to get movers scheduled as soon as possible. Make sure to avoid scheduling the move and closing on the same day if possible. If you will be doing renovations, start getting quotes from contractors. If you need any local vendor, please don’t hesitate to reach out as we can assist in helping make this move as seamless as possible. Make sure you set up the transfer of utilities for closing day.

Closing is the final step for you to become the legal owner of your home. You will take a final walk-through just before closing to assure that negotiated work has been completed and everything is in working order. The closing process itself requires a lot of paperwork and patience. Be prepared with your government issued photo ID, cashier’s check and any other documents required by the title company or loan officer. Don’t forget to re-key all the locks and change the garage door opener code when the property is officially yours.

Congratulations on your new home!