4 Steps to Homeownership
Thinking of buying a home? Here are four critical steps:
Save for your down payment
Build your credit
Connect with a trusted real estate agent
Get pre-approved for your mortgage
How to Find the Right Agent
When looking for your agent, you need to be sure they are highly skilled in these three areas.
PROCESS NAVIGATION - Two hundred thirty potential steps take place in a successful real estate transaction. Make sure your agent is experienced with this process and well organized.
NEGOTIATION SKILLS - Having an agent that is a skilled negotiator could save you thousands.
MARKET KNOWLEDGE - Be sure to enlist the help of an agent who understands your local market and how to price your home competitively.
Should you buy an existing home or new construction?
Each option consists of pros and cons.
NEW CONSTRUCTION:
More energy-efficient options that lead to savings over time
Lower maintenance - repairs unlikely, comes with warranty options
Customization
EXISTING HOMES:
Able to negotiate price
Established neighborhoods - the lot layout of the homes, landscaping, and traffic patterns are already defined.
Timing - you can move in according to the timeline that you and the sellers agree to (pending settlement). Usually 30 - 45 days
Two Common Myths About the Home Buying Process
At times, people shy away from purchasing a home because of myths associated with the down payment process and credit ratings.
MYTH # 1: “I need at least 20% for a down payment.”
FALSE. With assistance programs, different loan packages, and private mortgage insurance, your down payment can be as little as 3%.
MYTH # 2 - “ I need a 750 FICO score or higher!”
FALSE. Recent reports show that 50% of home loans were granted to buyers with a FICO score of 750 or lower.
3 Tips to Win a Bidding War
BE READY - Get pre-approved before starting your search. Having a pre-approval letter demonstrates to agents and sellers that you are serious.
ACT FAST - If houses are selling quickly, you may not have time to “sleep on it.”
MAKE A COMPETITIVE OFFER - Present your best offer as you may not have time to negotiate. Make sure that your bid is fair and competitive.
How to Make a Competitive Offer
Making a competitive offer involves being prepared. Be sure to listen to your real estate agent. As a trusted professional, your agent can guide you through the process. You will also need to understand your finances and be ready to move quickly. When you have found your perfect home, make a fair and informed offer. Furthermore, if the market is competitive, you may have to be a flexible negotiator. Be as adaptable as possible with items like move-in dates and contingencies.
Protect Your Loan Status
Avoid these things after applying for a mortgage so you don’t jeopardize your loan status:
Do not change bank accounts.
Do not apply for new credit or close any current accounts.
Do not make large purchases.
Do not make large deposits of cash to your bank account without speaking to your lender.
3 Must-Do’s When Selling Your Home
Selling your home can feel like a roller coaster ride at times. Here are three quick tips to make the process as seamless as possible:
Price Your Home Right
Keep Emotions in Check
Stage Your Home Properly