Are You A First Time Home Buyer? | Santa Cruz Real Estate
The new year quickly approaches and I am sure you have made some resolutions. If purchasing your first home is one of them, consider these tips on preparing for the process.
Deciding to purchase a home is a monumental lifetime decision. Doing your research, saving money and letting someone guide and assist you during the process is critical to your end result in homeownership.
Start by following these simple steps and be sure to call me at 831-334-0890 if you are ready to start looking for the perfect home.
- Check Your Credit Score
Lenders tie the interest rate you must pay to your credit score, so that borrowers with a score of 720 and sometimes 740 and above are the only ones who will pay the lowest mortgage rates. Borrowers with a credit score below 620 may not qualify at all for a mortgage until they can improve their score. - Set Your Housing Budget
A lender will tell you how much you can borrow, but each potential homeowner should create a simple budget for themselves with income and spending to determine how much they are willing to spend on housing payments. Experts recommend that homeowners spend a maximum of about 30% of their gross monthly income on principal, interest, homeowners insurance and taxes. Don't forget to budget about 1% of the home price for condo or homeowner association fees and maintenance costs. Use a mortgage calculator online to estimate your payments. - Start Saving
Along with enough money for a down payment on a house, start saving the difference between your rent and your estimated mortgage payment. This allows you to get more comfortable with a higher monthly payment and also builds your savings for the fees associated with purchasing a home. - Meet With A Lender
Collect appropriate financial documents, including retroactive tax forms, bank statements, and pay stubs to submit to your lender. Also, try to get a pre-qualifying letter or better yet, a pre-approval letter. This makes the loan process easier and it makes things easier going forward with your agent. - Call Me!
Working with a professional real estate agent will enable you to learn the value of comparable homes in the areas you’re most interested. These "comps" will help reveal whether or not the home you are considering is priced fairly. Your agent will assist you by notifying you of new homes that meet your needs and all other related tasks and paperwork going forward.
Are You A First Time Home Buyer? | Santa Cruz Real Estate
There are some amazing real estate deals in today’s Santa Cruz real estate market this winter season. If you are ready to begin the purchase process… or need some advice before marketing your home, contact John Flaniken your Santa Cruz Realtor at 831-334-0890.
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