4 Questions To Ask When Considering Buying A Home
Whether you’re a first-time homebuyer or a seasoned real estate investor, buying a home is an exciting process as it should be. However, there’s also a lot to consider when you contemplate buying. So before you begin your search for the perfect property, here are four questions you should ask yourself.
What do I want?
Take the time to figure out what type of property you want to buy. From single-family and multi-family homes to condos and townhomes, there are Multiple options available and it’s important to select the best fit for your needs. Figuring out the area or neighborhood you want to reside in is equally important. While a property might have all of the amenities you’re looking for, factors like crime rate and proximity to highways can impact the overall home-owning experience. A good idea is to list out and prioritize your needs (e.g. large backyard, great school system) before you begin your search remember, Location, Location, Location.
What can I afford?
The rule of thumb is that you should never spend more than 30% of your monthly income on a mortgage payment. An alternate rule states that you can afford to buy a property that runs about two-and-a-half times your annual salary. For a more tailored look at what you can afford, use an online mortgage calculator; https://www.calculator.net/loan-calculator.html to see what your monthly mortgage payments would be if you bought a home today.
Am I financially prepared?
A few weeks before you start searching for a home, review your credit score and make sure it is in good standing. Get copies of your credit report, ensure that it’s accurate, and fix any issues you discover. Likely you’ll also want to get pre-approved for a home loan, which will put you in a stronger position to make a serious offer once you find the right property. Pre-approval from a lender is based on your credit history, debt, and income.
How do I make the best bid possible?
Do your research! Your opening bid should be based on the sales trends of similar homes in the area. So before making your opening bid, get online and review the selling prices of comparable properties. If these properties sold for less than the current asking price of the home you’re looking at, you can feel comfortable making a bid that’s slightly lower than what the seller is asking. Remember it’s all about the current market condition.
Biggest Mistakes That Homebuyers Make
Let’s face the facts: Buying a home can be an amazing experience, but it can also be quite complicated. With emotions running high, it’s all too easy for homebuyers to skip over crucial steps and make mistakes. But don’t worry! We’ve laid out some of the biggest mistakes that homebuyers make below so you will know to avoid them.
Low-balling the seller
When you find a house that you love, don’t play games. Ray Bader will help you to come up with a reasonable offer based on the sales of comparable properties in the area. Some buyers seem to think that taking their time and making a seller “sweat” is a good strategy for getting the best price possible. Don’t fall into this trap! You will likely never be the only one interested in buying a particular home, so if you find one that you love, get it before it’s gone. Don’t kill the deal by making too low of an offer or by making excessive estimates for repairs.
Not reading contracts
When you sign a real estate contract, you’re entering into a financial obligation. And while it seems like common sense that you should always read (and understand) all of the terms and conditions, many homebuyers do not. A good idea is to have Ray Bader go over your contracts with you step by step, section by section. Because contracts are legally binding, you must understand and discover any issues BEFORE you sign.
Spending too much?
Your pre-approval amount should act as a guide, showing you what you could pay for a home if you maxed out your finances. Your pre-approval amount should not, however, be the price that you buy at. Buying at the very top of your price range will likely leave you “house poor,” which means you’ll be able to make the mortgage payment and cover recurring expenses, but then you’ll have little or nothing left for recreation or other projects. So instead of buying at the top of your approval level, but within your comfort level: a level where you’ll still have sufficient money left over for other things.
*AVOID BUYING LARGE OR EXPENSIVE ITEMS DURING YOUR REAL ESTATE PROCESS.
How Can Ray & Linda Bader Help Me Buy A Home?
Buying a home can be an overwhelming process. From financing to negotiating to closing, there are a lot of moving pieces that can leave homebuyers bewildered. Ray & Linda Bader have over 35 years of experience in San Diego Real Estate and will help guide you through each step of the buying process, offering sound advice along the way. By working with Ray & Linda who knows the ins and outs of San Diego County’s real estate industry, you’ll not only end up with a great home, but you’ll also walk away with a great experience.
Here are some of the key areas that Ray & Linda Bader will help you with.
Getting pre-approved by a local lender
By providing Ray Bader with some basic information about your income, savings, and debt, he will assist you in getting pre-approved by a reputable lender. The lender will then go over your financing options, what monthly payment amount you want to afford, what you can expect for down payment requirements if the property has Home Owners Association (HOA) or Mello-Roos fees, and closing costs.
Choosing a home
For most buyers, choosing a home is an emotional process. Ray Bader will assist you in this process by offering subject information about each property you look at. From local community information like zoning to home-specific details like condition and amenities, an agent can help you find exactly what you’re looking for.
Making an offer
Once you’ve found the home of your dreams, Ray Bader will research recent comparable sales of similar homes in the area to help determine a fair selling price based on those comparable sales, as well as other factors like inspections and repairs. Ray will then help you structure an offer and negotiate to get the very best deal possible.
Closing, or settlement, can be a complicated process. In some areas, the escrow or title company handles the closing process, while in other areas an attorney handles it. Regardless of where you’re buying, Ray Bader will help ensure that everything goes smoothly.