The first thing you need to do is get pre-approved. This is different from Pre-qualifying, as it is a full loan approval instead of simply an opinion letter. It is best that you take this step before looking at homes. Finding out what you qualify for will help you look in the right price range. You would be disappointed if you found a home you liked and then found you couldn't qualify for it. By the same token you may be able to look at more expensive homes than you originally thought possible. Getting pre-approved will help you in the following ways:
Determine How Much Home You Can Afford
Princeton Capital can determine your purchasing power, which gives you a guideline as to how much home you can afford – before you start looking. We will show you a variety of different types of financing (Fixed Rate, Adjustable, Interest Only, and 100% Financing), and will determine how much you qualify for with each of those types. Based on your desired payment level and type of financing with which you feel comfortable, we can determine your purchasing power.
Know What Your Down Payment Will Be and Provide Financing Options
You need to choose a home based on how much money you have available. Based on the funds you have available, we will design a loan that will work for your individual situation.
Know What Your Monthly Payment Will Be
Before picking a price range, you should make sure that you can handle your total monthly payment: Principal, Interest, Taxes, Insurance (Mortgage Insurance and HOA dues, if necessary).
Turns You Into a Cash Buyer
In today's market, buyers are not the only parties concerned about financing. Sellers are equally concerned. In cases where there are multiple offers for homes, the buyers must put themselves in the best possible position to have their offers accepted. Getting pre-approved also puts the buyer into a better negotiating position, as the seller knows the buyer is ready, willing, and able to buy, and the financing is not in question. Those buyers who are not pre-approved will have less chance of obtaining an accepted offer on the house they wish to buy, and are therefore at a disadvantage.
Congratulations! You have taken the first step towards owning your own home by choosing a professional real estate agent. You have made a very wise decision. In using the services of a Realtor to guide you through the challenging home buying process, you can be assured that you will receive the best service with much less hassle and anxiety. Your real estate professional will:
While the property inspector will do a thorough, professional inspection of your new home (discuss this with your real estate agent), it is a good idea for you to check a few things yourself when considering a home purchase. Some general considerations include:
You should always check and inspect these items, room by room, when considering your purchase.
You need to make some notes on these interior features. Record important details and note anything that needs changing, repair, or special maintenance. You'll avoid costly repairs by making this extra effort.
In addition, make sure the inspector investigates any signs of structural or water damage (such as wall cracks, moisture, etc.). When you actually buy a home, you should do a walk-through several days before closing to determine if all the conditions in your sales contract have been met. However, the time to inspect and note any defects you want corrected by the seller is during the contract inspection period or prior to signing the contract. Any repair or replacement items should be noted in the contract with any questions or concerns you might have.