Five Secrets for Saving Thousands when Buying a Home
If you are like most people, shopping for and purchasing a home involves a number of stresses. Even the most experienced home buyers make costly mistakes that can easily be avoided. That's why we've identified the five best 'secrets' to find the right home, at the right price....and secure the right financing:
Secret#1: Be Clear on what you NEED:
- Establish your general price range based on a lender pre-approval
- Establish the size of the home: number of rooms, bedrooms and bathrooms
- Establish the general location
- Establish the style of home you would like
- Establish layout and desired floor plan: Traditional? Open?
- Establish school and commuting requirements
Secret#2: Understand what you Want
Evaluate your present home and write down what you like and dislike. From your list of 'likes,' list out the features you want in your new home, then rank them in order of priority. It is important to do this together with all the decision makers so that everyone is on the same page.
Secret#3: Establish your purchasing power:
Lenders and Bankers use two guides to establish your purchasing power:
- Payment to Income Ratio: this compares your income to the mortgage you are considering. The 'payment' is the mortgage payment (principal and interest) plus property taxes and insurance or PITI
- Debt to Income Ratio: this refers to ALL of your major monthly financial obligations including car and credit card payments and other outstanding debts.
Your lender will assess your purchasing power by adding in your new home loan to current debt and compare it to total income. Here is the key...since each mortgage company sets different limits on your debt to income ratio, you need to find a lender who is motivated to loan you the money.
Secret #4: Be financially prepared
Before you start browsing for a home:
- Find a motivated lender. Ask a realtor to refer a reputable lender to you. The lender will usually go above and beyond and be as competitive as possible because they want to keep getting referrals.
- Get pre-approved, not pre-qualified. A pre-approval will give you a negotiating edge as the seller is assured that income and assets have been verified by the lender, as opposed to a pre-qualification, which is based on a conversation between the applicant and lender
Click to contact our preferred lender, Jon Lampkin, Vice President of Mortgage Lending at Guaranteed Rate
Secret#5: Hire a Buyer’s Agent
The Seller's Agent's loyalty and financial obligation is to the Seller. The Buyer's Agent’s loyalty and financial obligation is to the Buyer. If you see homes with an agent that you have not hired via contract...that agent is working for the seller. Hiring a Buyer's Agent entitles you to a valuable set of services that can save you thousands of dollars. One of those services is that a Buyer Agent can help you formulate a smart offer by showing you comparables and sharing his or her experience and statistics that are not on public websites. The best news is that the Buyer Agents fee is paid by the Seller.
Browsing for homes in the area? Our website is full of useful information for new residents. If you are thinking about buying a home in Essex, Morris or Union County, click here to search all homes for sale. The Zebaida Group would love the opportunity to help. If you are selling a home, Robert and Marlisa Zebaida would love to show you how, through strategic pricing, staging, expert marketing and cutting edge negotiating skills you are likely to get your home sold quickly in today's Essex, Morris or Union County real estate market. If you're thinking about selling your home in Essex, Morris or Union County, NJ and you don't have a Realtor®, contact the Zebaida Group.
The Zebaida Group provides an exceptional level of real estate services to home buyers and sellers in Essex, Morris and Union County, NJ. If you have specific questions relating to homes and Real Estate in Essex, Morris and Union Counties, NJ give us a call at 973.379.7030, or email us at firstname.lastname@example.org. To learn more about Essex, Morris and Union Counties, we invite you to visit www.ZebaidaGroup.com!