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Before You Look at Your First House
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Here are some important questions that you need to address:
- How much cash is available for a down payment? The amount you have available for a down payment will affect what types of loans for which you can qualify. Learn more.
- Am I ready to write a check for the earnest money? Earnest money is a cash deposit made to a home seller to secure an offer to buy the property. This amount is often forfeited if the buyer decides to withdraw his offer.
- How much additional cash will be available to pay for closing costs? There are certain standard costs associated with closing the sale of a house. These fees are split between the buyer and the seller, as spelled out in the sales contract. Learn more.
- What is the maximum monthly mortgage payment that I can afford? Most lenders will use the *28/36 rule to determine the maximum mortgage payment you can afford.
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*The 28/36 Rule
No more than 28% of your gross income can be applied to your mortgage, real estate taxes and insurance. And no more than 36% of your gross income can be applied to your mortgage expenses plus your regular debt expenses (car payments, credit cards, other loans, etc.).
The home buying process doesn’t need to be dreadful. I will guide you through this process, answer your questions on what you should expect from a REALTOR®, help you find where to look for loans, and what to prepare for closing a successful transaction.
STEPS TO OWNING A HOME
1. Are you ready?
Do you know what you want, do you have the money, is your financial house in order?
2. Finding a REALTOR®
Well,.. you have come to the right place. But, seriously. Are you working with someone who is a professional, who knows the market, who can provide to you a track record of sales and listings and who is a full time REALTOR®? Debbie Kirkland has that track record!
3. The Pre-Approval
This is most often a requirement when presenting offers is today’s market. It means that you have begun the process of working with a lender, that you are serious about your decision, that you are ready, willing and able to purchase and finance a home. Knowing how much you can afford is critical to this process and to your family's long term financial security. I will help you find a lender you are comfortable with....(STAY AWAY FROM INTERNET LENDERS!!), someone who we can communicate with directly!
4. Looking at Homes
What are the important and necessary elements of a home. Relaying this information to your REALTOR® will insure that we are on the same page, that we do not waste time looking for something that will not fit your needs or lifestyle. There are many ways a REALTOR® will present properties to you during this process. This is where the fun begins!
5. Choosing a Home
We will reserach available homes, compare amenties and construction elements, neighborhoods and all the features of a hoem and it's location in the community until you are certain that you have found the perfect home! You will know it when you walk in it!
6. Making an Offer – The Sales Contract
Writing and offer is not as scary as it seems. I will explain each clause and term of the contract to you and make sure that you are comfortable with this step!
7. Due Diligence
There will be deadlines for you, and for the seller once a Contract has been fully accepted and executed. These include financing committment, insurance binders, home inspections, appraisals and repairs. I will coordinate these details for you!
8. Closing
Making sure that all details have been taken care of, including title work, surveys and lender required inspections is the last step. My staff will make sure we are prepared and every detail covered.
9. What’s Next?
Moving in and enjoying your new home…and without fail, dinner with your favorite REALTOR®!
“Appreciation can make a day, even change a life. Your willingness to put it into words is all that is necessary.” Margaret Cousins
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