For most people one of the first thoughts is how much should
I save. Well it depends, banks used to require 20% down to purchase a residential property. Now a lot of banks now only require 5% down. Please understand that since you are putting down less than 20% you will be required to pay Private Mortgage Insurance (PMI). PMI is a lender's protection in the event that you default on your primary mortgage
and the home goes into foreclosure.
Another thing you want to keep in mind before contacting a lender is to check your credit report. By law everyone is entitled to one free credit report from each of the major credit bureaus. Having the information in hand before you talk with a lender lets you check the accuracy and dispute any errors found in the reports. The higher your credit score, the lower the interest rate on your mortgage. So, I am sure you want to know what is the best credit score? Well that depends on what loan product you decide to go with.
Here is where I can provide more detailed information about the best credit scores for various programs. Becoming your lifeline through the process, your chief advocate, confidante and hand-holder to move you through the process from finding a property to close.
The next step in the process is going to the bank to get your pre-approval or pre-qualification.
Lets talk about the difference between the two.
• Pre-qualification – is the evaluation of the creditworthiness of the borrower, which tells you
how much you can afford.
• Pre-Approval - is basically a promise from the lender that you're qualified to borrow up
to a certain amount of money.
Now that you know what you can afford and have your pre-approval letter you can now begin your property search with the peace of mind that comes with knowing you’re within your budget.
Now the discussion of what you really want and need in a property can begin. Armed with your price range and knowledge of the local area, supplied by yours truly, the search
can begin for the perfect property.
As your agent I will be working alongside you, providing you with the resources and fee structure for the items outlined above.
My goal is to provide superior customer service, strong negotiation skills and updated feedback and information, focusing on the process and details to execute a seamless
and efficient transaction.
Lets now outline some of the costs that are associated with the purchase of property.
So you made the decision to purchase property.
It can be a complicated
and stressful process.
But knowing what to expect can reduce some of that anxiety and help you confidently find your way.
To help, I am going to provide you with a brief outline of the home-buying process.
• Earnest Money
• Inspection Fees
• Attorney Fees
• Appraisal Fees
• Contingencies
• Closing Costs
