what should you do before buying a house
TRANSCRIPT
What should you do before you buy a home?
Decide what you can afford
Generally, you can afford a home equal in value to between two and three times your gross income.
Develop your home wish list
Start saving!
Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. However if credit and income allow, you can get up to 96.5% financing. Also, don’t forget to factor in closing costs!
Closing Costs include:
Tax escrows Attorney’s fee Transfer taxes
Closing costs average between 3 and 6 percent of the mortgage amount!
Get your credit in order
Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
Determine your mortgage qualifications
•How much do you want to borrow?
•Over how many years do you want to pay it back?
•FHA or Conventional?
Talk to a Mortgage Professional!
How much would a bank lend me? What kind of loan products are out there? What are rates like now? How many points could I/ should I buy
down?
Pony up Cash for closing costs
Your cousin owes you money?
First time home buyer’s tax credit?
Are you Grandma’s favorite?
Have an IRA laying around?
How much would my house cost?
Principal Interest Property Taxes Insurance
“Calculator! You’re my best friend!”
Real Estate Agents- Why is it that they seem to talk out of both sides of their…cheeks?
All agents usually represent the sellers right off the bat
Seller Agent
When an agent is showing you a house that is their own listing, or at their own open house, that real estate agent is representing the seller, period.
Everything they know about any potential buyer they must tell the seller.
They owe their loyalty to the seller and their job is to get the best price and terms for the seller.
Broker Agent
When an agent shows you a house that is listed with another real estate office, they are STILL working for the seller on behalf of the other Broker.
Buyer Agent As your agent, I…
– represent your best interest
– Hold your information in confidence
– tell you everything I know about the house
– Advise you on the price Mary PasquarelliCentury 21 American Homes
84-32 164th StreetJamaica Hills, NY 11432
Office:718-206-1340Cell: 646-734-1286