Buyer Information

Being a homebuyer in today’s real estate market:

Be Prepared

A buyer in today’s market should make sure they do their homework!

1. Know your credit score- If a buyer needs a mortgage to purchase a home, they need to make sure their credit score is in good standing. Although FHA allows lenders to qualify buyers with credit scores as low as 580, most lenders won’t qualify a buyer unless their score is at least 640 (although some will go as low as 600 if their are other high qualifying circumstances).

2. Know your debt-to-income ratio- Most mortgage companies will not lend you money unless your total mortgage (including PITI) does not exceed 28% of your gross income, and your total debt (mortgage, car payments, credit cards, school loans, etc) does not exceed 36% of your gross income.

3. Contact a lender- Once you’re comfortable with you financial situation, you NEED to contact a lender (your Real Estate agent can reccomend some…try to stay away from internet lenders and 800#’s, they don’t always give you acurate information). A lender can help you determine how much money you will qualify for, what a comfortable mortgage payment is, what type of loan would fit your needs best, and let you know if there’s anything you can do to better your financial picture. Even if you’re not sure if your credit score and ratios are good enough, please contact a lender to thoroughly explore your options and if necessary help you develop a plan to put yourself in a position to buy down the road if you can’t qualify now. (on my home page you’ll find a link to a preferred lender, and if you contact me I can get you contact information for other lenders I’ve successfully worked with in the past)

3. Research areas of interest- Get to know the different areas that are within cloze promixity to what’s important to you, whether its close proximity to work, specific school districts, a city,  restaurants…whatever your needs are, and then learn about them. Drive around in the areas, search the internet real estate sites and see what homes in those areas are listed for and what they are like at different times of the day. A community might look have a different feel on a Saturday morning versus a Tuesday evening. This will prepare your expectations for when you contact a Realtor to start looking at potential homes in those areas.

4. Make 2 lists (1- needs, 1- wants)- You should create two lists to help you determine what homes will work best for you. The first list is you “needs” list. You want to put down on paper how many bedrooms you need, as well as bathrooms, storage space (garage, shed, attic, etc), size of yard, proximity to important aspects of your life (schools, work, parks, cities, etc), community amenities (playgrounds, water-access, pool, etc), etc. Then you need to make your “wants” list. This may include such things as a finished basement, fenced yard, gourmet kitchen, etc. Hopefully you want find a home that fits in your budget and meets the majority of items on both lists!!

5. Find the RIGHT Agent for you – Finding the right Real Estate Agent to help you purchase you home is one of the most important steps in your homebuying process.

Find the RIGHT Agent

Finding the right Real Estate Agent is a very important step in the process of buying a home. It is smart to find an agent with a personality that works well with yours, someone you trust and feel you can be honest with, and some you feel is professional and knowledgeable. Make sure you ask questions of that agent regarding their market knowledge, if they’re familiar with homes in the areas that you’re interested in, and if possible as to speak with past clients. If you find the right agent, your homebuying process with be as smooth as possible and your expectations will be thoroughly explained and met.

The Homebuying Process