Get Ready to Buy that Home!

Buying a home may not seem like a big deal or it can be very overwhelming. Either way, there are definitely steps you need to do before you begin searching for your perfect home. You may want to keep these in mind when you start your process:

Saving enough money for your down payment. The more money you can put down on your home with the initial purchase will reap huge rewards in less interest paid over the life of your mortgage. It also may help you qualify for a lower interest rate and make your mortgage payment lower per month.

Figure out how much house you can afford. Keep in mind your current expenses as well as how much you think it will cost to own and maintain your home purchase. You will want to calculate how much your expenses may increase over the years or what may change in the future? If you are comfortable with the monthly payment a townhouse is compared to a mansion, you shouldn’t over extend yourself.

Wishes vs. Needs. Make a “Needs List” and then cross out those wishes that crept on that list. Figure out what you NEED from a home and if it has a few wishes, then that’s the cherry on the top. But you won’t have to sacrifice any of your needs to get a few wishes.

Get Loan Approval. If you need a list of great loan officers, contact me. The main thing to do before you start looking for a home is to get pre-approved. The lender has taken your application for a mortgage, run a credit check and has deemed you credit worthy to secure a loan. You also will be given a price range of houses you can afford – but go back up to Number 3 – even if you can afford a $250,000 home, you may be more comfortable with the payment a $150,000 gives you. It’s your choice.

Do your home-work. Ask me for a list of homes within your needs list and price range that have closed within the last several months. This gives you an idea of what the market has done recently and what homes your purchase will be compared on an appraisal. Having this knowledge will give you comfort that you are paying market price for your home.

You may want to hire an attorney. Buying a home is a complicated process — so it’s best to recruit the assistance of an expert. A real estate attorney will look out for your needs during the home-buying process, will read the fine print and will help explain anything you don’t understand. Think of it as an insurance policy against running into troublesome real estate hassles after you’ve signed on the dotted line.

Home Inspections. You should always consider ordering a home inspection to look at the home from the basement up. If there are any structural issues or things you will want to know, it’s best to find out BEFORE you close on the home. Once closed, any problems will be your problems.

I’m here to help you every step of the way – from the initial search to after closing – I’m there . Contact me today with any questions you may have about buying – or selling in the local Benton County area. I also help clients buy and sell homes in Tama County, Iowa County, Linn County and the Cedar Rapids area.