Thinking About Buying a Home?

Here are some things you need to know…

1. Don’t buy if you really like moving.

If you can’t commit to remaining in one place for at least a few years, then make sure you really crunch the numbers to see if it will make sense. There are a lot of costs involved with the buying and selling of a home, so you could end up losing your hard earned $$$ if you sell too soon – even in a market that isn’t declining.  When prices are falling…well, I shouldn’t have to spell that one out.

2. Start by reviewing your credit.

Unless you’re paying CASH….you’ll need to get a mortgage (I know where you can get one) to buy a house. So, you have to make sure what is showing p on your credit report is as accurate as possible. A few months before you start the process of looking for a home, you’ll want to get a copy of your credit report. (I know where you can get one of those as well). Make sure the information is correct, and if needed, fix any problems you find. We can help you with that as well. One of the best tools…really an information product…that we’ve found if you need to really clean up your score QUICKLY to get your score up RAPIDLY is right here. We’ve seen clients have great success raising their credit scores quite significantly by following the instructions that are laid out for them in this easy to follow course.

3. Set your sights on a home you can really afford.

The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual income. But you’ll do better to use one of the many mortgage calculators available in order to get a good understanding on how your income and expenses will affect what you can actually afford.

4. If you can’t put down 20 percent, don’t worry….there’s still a loan for you.

There are a variety of  lenders…think FHA, VA and USDA Rural… who, if you qualify, offer low-interest mortgages that require a down payment as small as 3.5% percent of the purchase price. To read up on FHA loans or USDA Rural loans and VA loans , i.e. the loans that require 3.5% down and 0% down respectively, then just click on the links.

5. Buy in a great school district….even if you don’t have kids.

In most areas, this advice applies even if you don’t have school-age children. Reason: When it comes time to sell, you’ll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

6. Before you go out looking for houses, get pre-approved.

Getting pre-approved will you save yourself the grief of looking at houses you can’t afford and put you in a position to make a legitimate offer when you do find the right home. Not to be confused with pre-qualification, which is based on a cursory review of your finances, a “real” pre-approval from a lender is based on your actual income, debt and credit history….and your loan will actually be reviewed by by a real live underwriter.

7. Get professional help….seriously.

Although you now have almost unlimited online access to home listings, most new buyers…and even you experienced ones… are better off using a professional agent. Some folks contend that you should look for an exclusive buyer agent if you can, Exclusive Buyer Agents work solely for buyers, avoiding the conflicts of interest inherent in the traditional seller-oriented purchase transactions. I don’t really think it’s necessary, however, you definitely  want buyers representation. Do NOT use the listing agent to negotiate on your behalf as the buyer. Their fiduciary responsibility is with the seller…not you the buyer.

8. Don’t skip this step…get a really good home inspector to check out the house.

Your lender (… once again, I know a good one…) will require a home appraisal. But that’s just the bank’s way of determining whether the house is worth the price you’ve agreed to pay. Separately, you should hire your own home inspector, with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road. I think the best in the Mid-Willamette Valley is Jim Allhiser with Perfection Inspection.