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How do I know if I am ready to buy a home?
You are ready to buy a home when you have a reliable job (2-3 years) with a good history of paying your bills. Less than stellar credit will NOT stop you from owning a home. While it is easier to buy a home with a large down payment, there are many first time home lenders with programs to help you with a small down payment or even no down payment. I have helped VA buyers get their first new home without any down payment.
With access to lenders I am happy to help you find the right lender to help you achieve your dream of home ownership, and I am happy to go over all your options to help you buy your home.
How does a lender decide the amount of home I can purchase?
The lender considers your debt-to income ratio. This means that they compare your gross monthly income to your monthly housing expenses. Your lender wants to see your ratio at no more than 29% to 30% debt to income. Another ratio they consider is your non-housing related monthly expenses to your monthly income. This includes things such as student loans, car loans, and credit card debts to your income. A lender wants to see this ratio at no more than 41%. When determining the most amount you can afford to borrow, a lender also looks at other factors, such as cash available for your down payment, closing costs, and your credit history. Having less than stellar credit will NOT prevent you from being able to buy a home.
What is a buyer's real estate agent?
If you call a real estate agent who has a house listed for sale, that agent works for the seller. The seller pays his or her commission. So that agent will give you information, and may even sell you the house, but legally they represent the seller. Wouldn't it be better to have someone protecting YOU legally when buying your home? That's what a buyer's agent does. Although a buyer's agent still gets paid by the seller through a commission split, the buyer's agent only, legally, and ethically represents you, the buyer.
How many homes should I look at before I make a decision?
There isn't a definitive answer to this question. Each home should be seen for its individual characteristics. You should create a checklist of minimum features, and another checklist of everything you really want to make the home perfect. When you created your minimum requirement checklist, you should compare the features of the home you are looking for to the list. Also, consider whether this home you are looking at has enough room for expanding in the future. Are there enough bedrooms and bathrooms? Is the yard big enough? Do you like the floor plan? Are the appliances modern and updated, or old and outdated? Can you live with having to under go renovations? On average, most home owners look at 15 homes before deciding to purchase. It's important for you to communicate as much information as possible to me as you can think of so when we view properties I have narrowed your choices down to the best alternatives.
What is earnest money?
Earnest money is a deposit you put down when you make an offer to buy a house. Earnest money shows the seriousness of your offer, and if your offer is accepted, it becomes part of the downpayment or closing costs. If your offer is rejected, your earnest deposit is returned back to you. The earnest money is held in an escrow account by me.