Judy Rivard's Blog
If you intend to buy a house in the foreseeable future, it pays to prepare. That way, you can enter the real estate market as an "extraordinary" homebuyer, i.e. someone who knows exactly what it takes to find a great house at an outstanding price.
Now, let's take a look at three tips to help any homebuyer go from ordinary to extraordinary.
1. Learn the Ins and Outs of the Housing Sector
The real estate market is complex, particularly for someone who is pursuing a house for the first time. Fortunately, plenty of housing market data is available that can help you gain the insights that you need to make an informed home purchase.
Take a look at homes that are currently available in your city or town. By doing so, you can better understand the prices of houses that match your expectations. Then, you can tailor your home search accordingly.
Furthermore, don't forget to assess the prices of recently sold residences in your area. This housing market data will help you determine whether you're about to enter a real estate market that favors buyers or sellers.
2. Get Your Finances in Order
Meet with banks and credit unions to learn about your mortgage options – you'll be glad you did. If you get pre-approved for a mortgage, you can begin your home search with a budget in hand, thereby reducing the temptation to spend too much on a house.
Lenders are happy to provide you with information about a broad range of mortgage options. Also, if you ever have mortgage questions, lenders employ friendly, professionally trained mortgage specialists who are ready to respond to your queries.
In addition, it usually is a good idea to evaluate your credit score prior to applying for a mortgage.
You can obtain a free annual copy of your credit report from each of the three credit reporting bureaus (Equifax, Experian and TransUnion). If you review your credit report closely, you can identify and resolve any potential credit problems and increase the likelihood that you can obtain a favorable mortgage.
3. Work with a Real Estate Agent
When it comes to becoming an extraordinary homebuyer, it is important to note that it can be difficult for even the most diligent homebuyer to succeed on his or her own. However, if you employ an expert real estate agent, you can streamline the process of acquiring your dream residence.
A real estate agent is committed to your homebuying success, and as such, will do everything possible to help you find the perfect residence.
Typically, a real estate agent will set up home showings, negotiate with a seller's agent on your behalf and provide honest, unbiased homebuying recommendations. This housing market professional will even help you alleviate homebuying stress and ensure that you can quickly go from homebuyer to homeowner.
Ready to embark on the homebuying journey? Use the aforementioned tips, and you can become an extraordinary homebuyer in no time at all.
If you plan to buy a house in the near future, you should try to map out the property buying journey. By doing so, you can identify any potential homebuying hurdles and resolve such issues.
To better understand what to expect when you pursue your dream home, let's take a look at three key questions that every homebuyer needs to consider.
1. Where do I want to live?
There is no shortage of high-quality houses available in cities and towns nationwide. As such, it sometimes can be tough to determine exactly where you want to live due to the sheer volume of available homes.
As a homebuyer, it helps to consider your future plans before you kick off a house search. For example, if you intend to enroll in continuing education courses at a university in a particular city, you may want to focus on homes near the city itself. Or, if you prefer to raise your family in a small town, you should plan your house search accordingly.
Don't forget to craft a list of homebuying criteria too. This list will help you further narrow your home search and focus on properties that have features that match your needs.
2. What can I afford to spend on a house?
Buying a home may prove to be virtually impossible if you fail to obtain a mortgage. Lucky for you, many banks and credit unions offer mortgages to homebuyers and can teach you everything you need to know about home financing.
Meet with a variety of banks and credit unions. That way, you can analyze a broad range of mortgage options and select a mortgage that corresponds to your finances.
In addition, it may be beneficial to get pre-approved for a mortgage. Once you are pre-approved for a mortgage, you can enter the real estate market with a budget in hand.
3. How can I achieve my desired goals?
The homebuying journey can be tough to navigate, regardless of whether you're a first-time or experienced property buyer. But if you collaborate with a real estate agent, you can achieve your desired results in no time at all.
A real estate agent understands what it takes to discover the right house, at the right price, regardless of the housing market's conditions. He or she will allocate time and resources to learn about your homebuying goals and ensure you can purchase a great residence at a budget-friendly price.
Also, a real estate agent will help you streamline your house search. This housing market professional will set up home showings and keep you up to date about open house events. And when you find your ideal home, a real estate agent will make it easy to submit a competitive offer to purchase this residence.
Take the guesswork out of the homebuying journey – work with a real estate agent, and you can receive comprehensive guidance as you pursue your dream home.
If you plan to pursue your dream house, it generally helps to evaluate housing market data. In fact, there are many reasons why homebuyers should assess real estate market data, and these include:
1. You can learn about mortgage interest rates.
Mortgage interest rates rise and fall frequently. As a homebuyer, you'll want to do everything you can to identify the lowest-available mortgage interest rates. And if you study the housing market, you may be better equipped than ever before to do just that.
In addition, it often helps to meet with banks and credit unions. These financial institutions can help you track mortgage interest rates and provide you with mortgage insights that you may struggle to obtain elsewhere. Plus, banks and credit unions can help you get pre-approved for a mortgage and ensure that you have finances in hand when you pursue your dream residence.
2. You can reduce the risk of spending too much to acquire your ideal house.
Let's face it – you want to buy your dream house, but you don't want to break the bank to do so. Fortunately, if you understand housing market data, you may be able to avoid the temptation to overspend on a house.
Examine the prices of available houses and recently sold homes in areas where you want to live. By doing so, you can establish a price range for your dream residence and find out whether you're preparing to enter a buyer's or seller's market.
3. You can quickly and effortlessly navigate the homebuying journey.
The homebuying journey may prove to be long and complicated, especially for those who fail to prepare for it. Luckily, housing market data can give you a better idea about what to expect as soon as you kick off your search for your ideal house. Then, you can use this information to identify and address potential homebuying hurdles faster than ever before.
For those who are unsure about how to collect and analyze housing market data, there is no need to stress. If you collaborate with a real estate agent, you can get the help the you need to discover your dream house.
A real estate agent can provide you with the right housing market data, at the right time, every time. He or she also will allocate the necessary time and resources to explain the importance of assorted housing market data and paint a picture of the current state of the real estate sector. That way, you can take a data-driven approach to buying a house.
Perhaps best of all, a real estate agent is available to take the guesswork out of the homebuying journey. This housing market professional will keep you up to date about new houses as they become available and ensure that you can find a terrific house that matches your budget.
Ready to make your homeownership dream come true? Use real estate market data, and you can become an expert homebuyer in no time at all.
For many individuals, the homebuying journey often begins with getting pre-approved for a mortgage. Because if a buyer has a mortgage, he or she can enter the real estate market with a budget in hand.
Ultimately, there are many signs that now may be the perfect time to apply for a mortgage, and these include:
1. You're ready to upgrade from an apartment to a home.
If you're tired of paying monthly rent for an apartment, purchasing a house offers a viable alternative. And if you get pre-approved for a mortgage, you can move one step closer to moving from an apartment to a house.
In most instances, a home offers a significant upgrade over an apartment. Many residences are available in cities and towns nationwide that offer more space than apartments. Plus, as a homeowner, you won't have to worry about dealing with a landlord.
2. You feel good about your credit score.
If you have a strong credit score, you likely are a great candidate for a mortgage. In fact, you may be better equipped than others to get a favorable interest rate on the mortgage of your choice.
Understanding your credit score is a key part of the homebuying journey. You can request a free copy of your credit report annually from each of the three credit reporting bureaus (Equifax, Experian and TransUnion). Then, once you find out your credit score, you can determine whether you are in good shape to pursue a mortgage.
3. A buyer's market is in place.
In a buyer's market, there usually is an abundance of top-notch houses and a shortage of buyers. This means a homebuyer may be able to get a wonderful deal on a house, especially if he or she performs a comprehensive house search.
To find out whether a buyer's market is in place, you should check out the prices of recently sold houses in your area. Also, you may want to find out how long recently sold houses were listed before they sold. By reviewing this housing market data, you can differentiate a buyer's market from a seller's market and decide whether now is the right time to apply for a mortgage.
If you're interested in getting a mortgage and starting a house search, you may want to hire a real estate agent too. Because if you have a real estate agent at your side, you can receive extensive support at each stage of the property buying journey.
A real estate agent will teach you everything you need to know about pursuing a house. He or she will offer insights into the local housing market and ensure that you can conduct a successful house search. And if you ever have concerns or questions along the way, a real estate agent is ready to respond to them.
Want to launch a home search? Get pre-approved for a mortgage, and you can take the first step to acquire your ideal residence.
Once you have found the home that you want to live in, put in the offer, and start the process of closing on a home, you may feel like you’re “home free.” The hard part may technically be over, but there’s one more important thing that you need to think about before you get the keys to your place: Closing costs.
A few days before you head to sign all of your paperwork to close on the home, your lender will send you a detailed report of different closing costs that you need to pay upon the settlement of the property.
Closing Costs Defined
Closing costs are what you pay to the lender and third parties. These are due at the time of closing on the property and must be paid up front. You should estimate that your closing costs will be between 2 and 5 percent of the purchase price of the home.
Everything Included In Closing Costs
Closing costs cover both one-time and recurring fees that are a part of your home purchase. The one-time fees are things that are generally associated with buying the home. These would include attorneys fees, lender fees, home inspection fees, document prep fees, underwriting fees, credit report fees, and realtor fees. You’ll also need a bank issued check for your down payment at this time.
At closing, an escrow account will be set up. This is like a forced savings account that will be drawn from to cover things like taxes, insurance, loan interest, and title insurance. These are all very important costs that are a part of buying a home.
Do Your Homework Ahead Of Time
The best way to deal with closing costs is to be prepared ahead of time. Talk to your lender in order to get an estimate of the closing costs. From there, you’ll need to decide if you need to finance your closing costs or simply pay them up front. There are advantages to both approaches. Sometimes, lenders will look at you as less favorable if you need to finance all of your closing costs. It all depends on the terms of your loan. This is why research is vital.
Compare Rates And Lenders
It’s important not to go with the first lender you talk to. Get some recommendations from your realtor and friends to see who might be a good fit for you. Every lender specializes in something different, so you want to be sure that who you chose is a good fit for you.
The most important thing that you can do with closing costs and the financing of your home is to get educated!