Unlock the door to your dream home!
As a home buyer, the decision to invest in a home is a monumental one. I understand the importance of a smooth and stress-free process. That's why being organized and in control will be the key to securing the best home deal possible. It's time to take charge and make your housing goal a reality.
Before you embark on the home buying journey, let's lay the foundation down for success.
First, You want to choose an experienced Realtor and Lender to help not only start your home buying journey, but to make the process a smooth experience. Start by asking yourself how much you can afford and what you are comfortable with paying on a monthly basis.
Then you will want to connect with a lender to start the pre-approval process. This not only establishes your purchasing power, but also gives you an idea of what you can afford and what you'd like to spend. With a pre-approval in hand, you can confidently search for homes within your budget.
Did you know there is a difference between a Pre-Qualification and a pre- Approval?
Many people do not know that there is a difference between a pre-qualification and pre-approval letter. Also, many people think that they have been pre-approved, but in actuality have only received a pre-qualification letter. So, lets dive into the two and find out why they are different.
A pre-qualification letter is simply when a mortgage lenders gives you this letter based on general questions about your income, debt, assets, and credit history. It is an estimate for how much you could qualify for with a mortgage. The information has not been verified or submitted to the underwriting department.
A pre-approval Letter means that you have applied for a mortgage; you have filled out the mortgage application, received your credit report, and verified your employment, assets, debts, etc.
When you are pre-approved, you know exactly what the maximum loan amount will be. The lender will be able to give you your max loan amount and interest rate. This gives you more leverage with the seller when making offers on a home. Many times, the listing agent will verify that you are pre-approved with your lender to confirm that you are a strong buyer and able to close on the home you made an offer on.
Say goodbye to the sleepless nights and endless worries.
With pre-approval, there's no need to question if a home is within your reach. You'll know exactly what you qualify for, your interest rate, your monthly mortgage payments, and even how much you'll have for a down payment. Get ready to turn the key to your new home. I will provide you guidance and a proactive approach to help make your home buying journey a breeze.
Lastly, I always recommend that you make a list of your must haves, wants and your negotiable. This will help narrow down your search and clarify what you are really looking for in your home. We will discuss what area you'd like to be in and other important items such as: Convenience for all family members, Proximity to work, or schools, or any places important to you, Crime rate of neighborhood (Metro has a great crime mapping tool: See Resource page), Local Transportation, and Types of home: Condo, Townhome, Single Family and New Construction Communities.
Importance of a home inspection
As a buyer, you are entitled to perform inspections during what we call in Nevada "The Due Diligence Period". The due diligence is usually about 10-12 days or as you specify in your offer. This is the time where you as a buyer should have inspections especially a home inspection done to determine the condition of the home. This is not required, but I highly recommend to have one performed.
If you do have a licensed professional perform a home inspection and there are items that you would like to have repaired, we can send over a repairs request along with the home inspection report. The seller has a few options as to make the repairs, repair some items, repair none of the items or give a closing credit instead of fixing the repairs.
This is extremely important to have done within the due diligence period to protect your earnest deposit back if you elect to cancel the transaction. Another situation may be that a big ticket item like the AC/Heater isnt working or there is evidence of water damage and we need to have other contractors come out to inspect. We need to have the time to negotiate and move forward. You want to feel comfortable with the condition of the home that you are purchasing
Shifting markets
Hot Market- being ahead of the game gives sellers a real edge. Homes vanish from the market as soon as they hit the listings, and sometimes even before. In a sizzling hot market, brace yourself for a stampede of multiple offers on every property, with final prices skyrocketing beyond the asking. Being a ready and poised buyer is absolutely key in such a frenzy. It's easy to get swept away in the chase for your perfect home, but if you come pre-approved, with a firm grip on your price range, and realistic about your needs, staying focused on your housing goals and budget becomes a breeze.
Balanced Market- there is a decent amount of inventory and an increase of potential buyers. Neither the buyer nor the seller hold all the power in this balanced market. Sellers may not receive multiple offers, but they aren't desperate to sell either. As a buyer, you need to be well-prepared starting with a pre-approval, narrowed down your area, and knowing your budget. With more room for negotiation than in a frantic market, you can take advantage of the opportunity to possible ask for closing cost help, lower than asking prices, etc.
Cold Market- houses may be listed longer and price reductions becoming more common. This market is advantageous to buyers because you have the time to look at homes and to make an offer. Also, during this market there usually is more inventory giving the buyer more options. Along with being able to take your time with more options, buyers generally will have more room to negotiate terms of their offer. An example would be for the seller to contribute closing costs or pay for the HOA transfer documents or lower than list price offer.
Buying a home with a HOA
When looking at a home that is in an HOA or Common interest community make sure you ask a few questions:
1. Ask how many HOA fees are there?
2. What is the fee schedule whether they are monthly, or quarterly.
3. What do these fees cover such as is it gated, certain amenities, etc.
4. Are there SIDS/LIDS with this community as well?
These additional fees can add up and will be on top of your monthly mortgage payment, so you want to make sure they are within your monthly budget and you want to run it by your lender before making an offer as it can affect your loan approval. The HOA or any other assessment fess are included in your debt to income ratio.
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