Tips for Buyers
Preparing to buy tips:
1. Start savings early
Here are the main costs to consider when saving for a home:
Down payment:
Your down payment requirement will depend on the type of mortgage you choose and the lender. Some conventional loans aimed at first-time home buyers with excellent credit require as little as 3% down. But even a small down payment can be challenging to save. For example, a 3% down payment on a $300,000 home is $9000.00.
Closing costs:
These are the fees and expenses you pay to finalize your mortgage, and they typically range from 2% to 5% of the loan amount. If you were making a 3% down payment on that $300,000 home, your closing costs could be between $5,820 and $14,550. That’s additional money you’d have to pay, on top of your down payment.
Move-in expenses: You'll need some cash after the home purchase. Set some money aside for immediate home repairs, upgrades and furnishings.
2. Check and strengthen your credit
Your credit score will determine whether you qualify for a mortgage and affect the interest rate lenders will offer. Having a higher score will generally get you a lower interest rate, so take these steps to strengthen your credit score to buy a house:
Get free copies of your credit reports from each of the three credit bureaus — Experian, Equifax and TransUnion — and dispute any errors that could hurt your score.
Pay all your bills on time, and keep credit card balances as low as possible. Keep current credit cards open. Closing a card will increase the portion of available credit you use, which can lower your score.
3. Choose a real estate agent carefully
A good real estate agent will scour the market for homes that meet your needs and guide you through the negotiation and closing process. I have been a consecutive top producer and pride myself in helping all of my clients in finding their dream home.
My knowledge in the industry as well as my listening skills, negotiation skills and networking with other agents all play a key role in getting your offer accepted by the seller. Knowing this is such a large commitment, I take great care in understanding what is truly important to each buyer while taking both their needs, wants and budget into account.
