What You Need to Know About the Mortgage Process [INFOGRAPHIC]Some Highlights: Many buyers are purchasing a home with a down payment as little as 3%. You may already qualify for a
Are You Thinking About Buying A New Home
Beware of hidden costs
While you might find a home that is the perfect price for your budget, beware of the hidden costs that come along with buying a property. You may or may not have a mortgage, but you will have yearly property taxes that will either be monthly payments or a large payment once a year. If you do need a mortgage, you can expect an origination fee, and depending on the amount of your down payment or your credit rating, you can also expect to pay private mortgage insurance. You can also expect fees by way of the home inspection, appraisal, and in some communities there will be monthly HOA fees.
Start your search Prepared
If you're already looking into purchasing a home or property, and you know you'll need a mortgage, you should already be shopping for a loan. Buyers with a mortgage pre-approval are a step above those that haven't even looked into loans. You can also help your purchase game by having fewer contingencies or conditions that affect the purchase. If you can start your home search with some of your bases covered, and the ability to be flexible, you'll already be far ahead of those just entering the real estate race.
Don't go overboard with an offer
While you might be inclined to get into a bidding war over your dream home (the market is pretty competitive), don't overspend to the point where if the market stabilizes your home will have an overly inflated price and make it difficult to resell in the future. If you plan on living in the property for a long time,paying a high price isn't a bad thing, but it's a good idea to set a limit on how high you're willing to bid for a home. This translates to stay within your budget.
Don't "Fall in Love" with a property
This is a sure fire way of getting in trouble right out of the gate. You become more likely to pay more, readily ignore problems there may be with the home and may possibly be setting yourself up for buyer's remorse after the sale and heartbreak if you aren't the winning bidder. The best way is to try to stay as unattached and aloof about the process of buying until you know you have a signed and accepted contract.
Approach the buying process like you would a blind date.
Do your homework. With the help of your agent, study the market. Once you have figured out how much you can afford, where you want to live and have your financing in order, get out and start looking at some properties. Realize that getting to the finish line in a home purchase can take some time. Plan on six to eight weeks from the time you submit an offer to the time you close. If the house is occupied you can expect another thirty days after closing before you can take possession of your dream home.
Best of Luck in your home search and God Bless!
As a life long resident of St. Clair County, only having moved away long enough to serve honorably in the U.S. Navy, I have the local knowledge to help guide my clients to a great outcome. I bring a t....