First Time Home Buyer
Jodi Suguitan's 7- Step Buyers Guide
1- Determine exactly how much you can afford. Sit down and evaluate your monthly budget. It is important to know what amount of money you are comfortable spending every month on housing. Consider how much money you can apply towards a down payment, the more the better.
2- Speak with a lender. You may already know someone who is a lender, however I strongly encourage you to "shop rates" and programs. Talk to several lenders and compare what rates and terms they can offer that put you within your predetermined monthly payment range. I can put you in contact with my personal preferred lenders who are able to search multiple mortgage products. Any reputable lender who shops rates for you will not only provide you your estimated monthly loan payment amount but should also attempt to accurately include monthly costs such as taxes and housing association fees, if those apply. You want a complete picture of what you will be paying monthly for housing. In addition lenders should search rates for you free of charge and obligation. Once you make a decision on a lender, request a pre-qualification letter.
3- Find your home. You will need to weigh criteria such as type of home, commute times, school districts, amenities, price, and so much more. Keep in mind that the asking price of a home is almost always negotiable. You have probably already done some searching on the internet which is a great way to get a feel for the market. If a picture is worth a thousand words than actually seeing the home in person is worth so much more. Contact me if you have not done so already, this is what I am here for. I am very familiar with the Atlanta area and can quickly identify homes which fit your criteria. We will set up a time and place to meet and view as many homes as you wish.
4- Negotiate. I will perform a market analysis on the home of interest. Based on that analysis, together we will form a negotiation strategy. During negotiations typically both the seller and buyer counter offer at least once. Negotiations not only include price, but such details as repairs the property may need, closing date, closing costs, and can even cover the appliances. An experienced, assertive, proactive realtor can be invaluable during this step.
5- Inspection. You are now considered "under contract". You have limited time to perform a home inspection. This is vital whenever buying a home. A home is most likely the largest single purchase you will make in your life, you want to be sure there aren't any surprises awaiting you. A home inspector has knowledge of virtually every facet of the "nuts and bolts" of a house. The inspector will identify any potential problems with your future home. While under contract we have a window of opportunity to make changes to the contract and negotiate with the seller to fix any problems.
6- Paperwork. I will be responsible for many documents. However there will be some that you have to fill out and others to review. I will assist you through much of this and by the end you will be familiar with names such as "mortgage application", "home owners insurance", "settlement statement", and others.
7- Closing. Once all the "i"s are dotted and "t"s are crossed the sellers, buyers, agents, and occasionally lender will meet at the attorney's office. During the closing ,and many signatures later, a legal transfer of the property will take place. Congratulations, you are now a home owner!
Returning Home Buyer
I would love to work with you! Most likely you must sell the home you are currently in before closing on a new home. It doesn't hurt to start looking now and to explore options. Give me a call and we can also work on selling your current home. It is a buyers market right now and selling will most likely be a greater challenge than buying. Visit my seller's page to see what we can do together.
Loans
You have probably heard quite a bit in the news lately regarding difficulty obtaining credit. Due to many reasons beyond the scope of this web site it is true that many changes have taken place in the mortgage industry. However it is still a relatively straight forward process to get a home loan if you are indeed who you say you are and really do make the salary that you claim. You can still get approved with a less than perfect credit score or a huge down payment. FHA loans are a great solution for many buyers with limited resources . The only way of truly knowing is to contact a lender. Usually this will take 5 minutes of your time. In the mean time monitoring and maintaining your credit scores are the order of the day.
Foreclosures
Unfortunately a significant number of foreclosures are today's market reality. They can represent a possible bargain basement price for a piece of property and can be a shrewd investment. However they are not your typical home sale and do have their own special set of considerations. Things to be aware of:
You are not the only person interested in foreclosures. Many professional investors and flippers are competing for the best of the foreclosure genre.
A foreclosure in good condition is somewhat of a rarity. Most were left by people in desperate times. As a result the care of the property most likely suffers and in some cases there is even abuse. Consider how much money you would be willing to spend turning the property into your home.
You must be prepared to move quickly on a foreclosure if it has true value. Anticipate a possible multiple offer situation. It is not uncommon to offer full asking price in order to outbid competition. The banks, who are the sellers, usually have many foreclosures to handle. Do not expect a quick response from them once an offer is made.
Once the offer is accepted many special conditions may apply. Difficulty inspecting the property and terms limiting bank liability are common.
All of this aside, there are still many more foreclosures on the market than buyers. You could make one of the best investments of your life.
