Buying a house is not something that can be taken lightly. It may be the largest, most important purchase you ever make. And to make sure this is the right house for you it needs to meet two objectives: offer the right space you and your family need and work with your budget. That is why it pays off to have a good plan in place before buying a house. Here’s what that plan might include:
Although you will certainly want to walk through the house before buying it, you can do some research before heading out. These days it is very easy to go online and see what properties are out there that match your must-have list. You will learn not only what properties are available but how much others, similar to the one you want, are selling for.
Knowing your annual household income is the first step. Although many lenders recommend that you look at homes that are selling for 3 to 5 times that amount, your financial situation may not allow you to go that high. By knowing how much money you have for a down payment, you can use an online calculator to find out how much your monthly mortgage payments would be.
Provide your financial information to your mortgage broker who will review it and tell you how much they can lend you. This will also serve to guide you as to what homes you should be looking at.
Working with a real estate agent that understands you and knows what you want is like finding the best partner in this process. They have information you won’t find online and can point you in the right direction. Also, it is the seller who pays the commission, so you won’t have to pay a dime for these services.
After touring plenty of houses (and taking notes on them), make a decision as to which one you like best. It should have what you need inside but also be located close to your important daily destinations. Once you find it, your broker will help you negotiate a fair offer.
Home inspections can truly be make-or-break situations. If too many problems are revealed, you may want to reconsider the purchase. If the seller agrees to fix them (or at least fix some of them) decide whether that works and if you will have the funds to make the needed repairs. If not, walk away.
Your mortgage broker needs to know if your aim is to pay as little as possible every month or if you’d rather pay off the loan as soon as possible. Your lender has a competitively priced loan that will work best to fit your needs.
You will get peace of mind that you are paying a fair price for the house.
Getting together the required paperwork and closing the sale with your San Mateo realtor by your side should feel like you are closing the deal of a lifetime. The time and effort you put into getting the perfect home will have been well worth it.