What's on Your Home Buying Wish List??

What’s on Your Home Buying Wish List This Holiday Season?

Granite countertops, hardwood floors, stainless steel appliances, a great school district...how long is your home buying wish list for Santa this holiday season? Some Twin Cities buyers have lists a mile long, while others may not even know where to start. In either case, here are some suggestions for your home buying wish list.

Wish 1: Prequalifying for a Home Loan

While being prequalified for a home loan is not a requirement to go home shopping, it makes the process a lot easier and move much faster. Becoming prequalified gives you an understanding of how much home you can afford, limiting your search to your price range and in some cases giving you a reality check on expectations.

When it comes time for negotiations, sellers often consider offers from prequalified buyers more seriously, since it shows a bank is ready to write the loan. This can work in your favor as a buyer in a seller’s market.

Wish 2: Finding a Home You Can Afford

As a general rule, you should look for homes that are offered for about two and half times your annual income. That will help make sure that your mortgage payment will be affordable once you tack on other monthly expenses.

Some home buyers—even prequalified ones—may find that they will be able to handle monthly mortgage payments but have a hard time coming up with the cash for the down payment. A traditional mortgage requires a 20 percent down payment, but there are other options. For example, some buyers may qualify for an FHA mortgage loan, which may require a down payment as low as 3.5 percent.

Wish 3: A Particular Neighborhood…or Property

At some point in the home buying process, most buyers will face a point where they must decide between a particular type of property or their ideal neighborhood. Often, the two are not both available within your price range. If you’re set on a Tudor-style home in South Minneapolis, for example, you may need to decide if the neighborhood or the home style is more important.

Your Realtor® can help you decide what’s important to you. Then, he or she can help you identify homes in different locations that meet your needs, or find different homes in your target neighborhood. Be prepared to make other sacrifices if neighborhood is most important, including house size, the size of the yard, and condition of the home.

Wish 4: A Home That Fits Your Family

Newlyweds may not need six bedrooms and seven bathrooms, while such a home may be the perfect fit for a larger family. Narrow your search to homes that have the space you need. Many first-time home buyers purchase a home that fits their needs as a single person or a couple, but outgrow their home once children come along. On the other end of the spectrum, empty nesters may want to trade their large, suburban home for something smaller near the city.

Wish 5: A Knowledgeable, Reputable Realtor®

Last, but not least, your home buying wish list should include a reputable Realtor® who knows the neighborhood you’re considering. To get started on your home buying wish list, contact Brooks Johnson, your friend in real estate, today.