Are you a first-time homebuyer eager to get into the market? Here are steps to take to help you decide whether you’re ready to take the plunge.
1. Check the selling prices of comparable homes in your area by using my home search feature right here http://sharondarelli.idxbroker.com/idx/search/basicsearch.
2. To get an idea of what your monthly mortgage payments would be if you bought today, use my mortgage calculator right here http://sharondarelli.com/buyers-homes-for-sale-sacramento/financial-calculators/.
3. Find out what your total monthly housing cost would be, including taxes and homeowners insurance. In some areas, what you’ll pay for your taxes and insurance can really impact your mortgage payment.
To get an idea of what you’ll pay in insurance, pick a property in the area where you want to live and make a call to a local insurance agent for an estimate. You won’t be obligated to get the insurance, but you’ll have a good idea of what you’ll pay if you do buy. For an idea of what you’ll pay in property taxes, assume you will pay approximately 1.25% of your home purchase price.
4. Find out how much you’ll likely pay in closing costs. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items like homeowners insurance or homeowners’ association fees. You can get an estimate of what your closing costs will be right here http://sharondarelli.com/buyers-homes-for-sale-sacramento/financial-calculators/.
5. As a reputable Realtor, you should speak with me about the real estate climate. Do I believe prices will continue falling or do I believe our area has hit bottom or will rise soon, or are we near a top? Let’s talk about it.
6. Get your documents in a row. Collect pay stubs, bank account statements, W-2s, tax returns for the last two years, statements from current loans and credit lines, and names and addresses of your landlords for the past two years. Have them ready to show to the lender. This may seem like a lot, but in this age of tight credit, don’t be surprised if your lender needs a lot in the way of documentation.
7. I can assist you in finding a good lender and getting preapproved. Getting preapproved for a mortgage helps you bargain from a position of strength when you are house hunting. And, it empowers you to pounce on the home of your dreams when we find it, without the risk of losing it to another buyer who was preapproved and ready to buy.