The Papineau Team's Blog
When it comes to purchasing a home, there is no need to settle for an "average" homebuying experience. Instead, there are many things that you can do to become an expert homebuyer, i.e. someone who can discover a first-rate house at a budget-friendly price.
Now, let's take a look at three ways that a "typical" homebuyer can become an extraordinary one:
1. Evaluate the Housing Market Closely
The housing market can be complicated, particularly for those who are searching for a house for the first time. Fortunately, an informed homebuyer will be able to identify real estate market trends and plan accordingly.
For example, if there is an abundance of houses available and a shortage of homebuyers, you likely are operating in a buyer's market. In this market, you should have no trouble locating a top-notch house at a price that corresponds to your budget.
On the other hand, a real estate market that features a limited number of outstanding houses commonly favors property sellers. Therefore, you'll need to proceed cautiously if you want to acquire a high-end house at an affordable price.
Of course, you should always check out a wide range of houses in cities and towns where you'd like to live. This will enable you to explore many houses and improve your chances of finding a residence that matches or exceeds your expectations.
2. Get Your Finances in Order
Although you'd like to buy a home in the near future, you still need to figure out how you'll pay for it. Lucky for you, many credit unions and banks are available that can make it easy for you to get pre-approved for a mortgage.
Lenders are happy to meet with you at your convenience. These financial institutions can outline a variety of mortgage options and help you make an informed mortgage decision.
With a mortgage in hand, you can enter the real estate market with clear-cut financial expectations. This may help you avoid the temptation to overspend on a home. Plus, you'll be better equipped than other property buyers to narrow your home search, thereby accelerating the process of acquiring your ideal house.
3. Work with a Real Estate Agent
A real estate agent is a housing market professional. As such, he or she can help you simplify the process of going from homebuyer to homeowner.
For homebuyers, hiring a real estate agent is essential. This housing market professional can keep you up to date about new properties as they become available, set up home showings, submit home offers on your behalf and much more.
Perhaps best of all, a real estate agent is available to respond to your homebuying concerns and queries at any time. He or she will even provide homebuying recommendations to ensure you can navigate the property buying cycle quickly and effortlessly.
Ready to become an expert homebuyer? Use the aforementioned tips, and you can streamline the process of acquiring a terrific home that you can enjoy for years to come.
If you plan to buy a house, you'll want to apply for a mortgage before you launch your house search. That way, you'll have your finances in order and can narrow your home search accordingly.
Ultimately, there are several steps that you should take prior to applying for a mortgage, and these are:
1. Check Your Credit Score
A bank or credit union likely will analyze your credit score as it reviews your mortgage application. However, you can find out your credit score free of charge before you kick off the mortgage application process.
You are eligible to receive a free copy of your credit report annually from each of the three credit reporting bureaus (Equifax, Experian and TransUnion). Submit a request for your credit report today, and you can receive comprehensive insights into your credit history.
2. Examine Your Earnings and Debt
How much you currently earn and your outstanding debt could play pivotal roles in your ability to acquire a favorable mortgage. Thus, you'll want to examine these factors closely so that you can better understand how lenders will view your mortgage application.
Also, if you have lots of outstanding debt, there is no need to worry. If you allocate the necessary time and resources to learn about your debt and pay it off, you can increase the likelihood of obtaining a favorable mortgage.
3. Establish a Budget
Although a mortgage may prove to be essential to buy a house, it is important to consider various homebuying expenses as well.
For example, you may need to pay closing costs, home inspection fees and other expenses throughout the homebuying process. If you're worried about having the necessary finances to cover these costs, you may want to start saving money for them as soon as possible.
It often helps to account for the costs associated with cable, electricity, internet and other home must-haves too. The aforementioned homeownership expenses can add up quickly, but those who plan ahead can ensure they have sufficient funds available to cover these costs.
As you prepare to search for a house, it usually is a great idea to hire a real estate agent. This housing market can help you prepare for each stage of the homebuying cycle and ensure you can achieve your homebuying goals.
Typically, a real estate agent will meet with you and find out what you want in a dream house. This housing market professional then can keep you up to date about residences that match or exceed your expectations.
Perhaps best of all, a real estate agent understands that no one should be forced to overspend to acquire their ideal residence. As such, this housing market professional will make it simple for you to discover a terrific house at a budget-friendly price.
Lastly, don't hesitate to reach out to a real estate agent for guidance before you apply for a mortgage. With a real estate agent at your side, you can learn about lenders in your area and find one that can provide you with the financing that you need to purchase your dream house.
Generally, the length of the homebuying journey depends on the individual. In some instances, a buyer will purchase the first house that he or she views in-person. Or, in other cases, it may take a buyer several weeks or months to find a house that matches his or her expectations.
There is no need to rush the homebuying journey. But if you know what to expect when you pursue your dream house, you may be able to seamlessly navigate the property buying cycle.
Now, let's take a look at three tips to help you streamline the homebuying journey.
1. Establish Homebuying Criteria
If you know where you want to live and what you want to find in your ideal residence, you can tailor your house search accordingly. And as a result, you may be better equipped than other property buyers to discover a great house at an affordable price.
As you put together homebuying criteria, it is important to consider your long-term plans as well. For instance, if you enjoy city life and want to spend as much time as possible in the city, a house in the city may be the right choice for you. On the other hand, if you want to raise your family in a small town, you may want to hone your search to houses in small towns.
2. Get Pre-Approved for a Mortgage
A home purchase likely will require you to obtain a mortgage. Fortunately, banks and credit unions are available nationwide, and these financial institutions can help you get pre-approved for a mortgage.
Meet with several banks and credit unions so you can learn about all of the mortgage options at your disposal. Then, you can select a mortgage and enter the real estate market with a budget in hand.
3. Hire a Real Estate Agent
If you're on the lookout for your dream home, you may want to hire a real estate agent. This housing market professional can keep you up to date about new residences that become available in your preferred cities and towns – and much more.
Typically, a real estate agent will do whatever it takes to help you find and buy your dream home. He or she initially will learn about your homebuying goals and develop a custom homebuying strategy for you. Next, a real estate agent will set up home showings and keep you informed about open house events. And if you discover your ideal residence, a real estate agent will help you craft an aggressive offer to purchase this house.
Let's not forget about a real estate agent's homebuying expertise, either. If you ever have concerns or questions during the homebuying journey, a real estate agent can respond to them. That way, you can gain the insights you need to make an informed home purchase.
Simplify the homebuying journey – use the aforementioned tips, and you should have no trouble finding and acquiring your dream house.
Buying a home is one of the most expensive undertakings that you’ll ever have in your lifetime. You probably have spent months upon months saving for a downpayment in order to make your home purchase. The problem is that after they believe their savings are complete, many buyers discover unexpected costs that go along with buying a home, making the entire process even more stressful. You should be prepared for many different kinds of costs that go beyond the sticker price of a home. Below, many of those surprising costs are laid out in detail.
Closing costs can be anywhere from 2-7% of the purchase price of a home. Closing costs cover quite a bit including:
- Inspection fees
- Title insurance
- Property taxes
- Mortgage insurance
- Underwriting fees
- Recording fees
- Loan origination fees
Depending upon the type of loan you get or your specific circumstances, your closing costs could be even more. Keep in mind that you won’t find out your specific closing cost amounts until the purchase of the home is well underway. You can talk to your realtor and lender ahead of time to be prepared for your own situation.
Closing costs are also negotiable, so don’t forget to ask questions. Certain administrative fees, for example, are often unnecessary and can be waived.
If you have a low appraisal on your home, you may need even more cash on hand. In order to meet loan and home value requirements, lenders won’t approve a loan for an amount that’s higher than the home is appraised for. In this case, if you still want the home, you’ll be left to come up with the difference in cash. Otherwise, you could be forced to walk away from the deal and lose some money in the process. This is one of those home purchase emergencies that you should simply be aware of. It can be an emotional experience to get a low appraisal on a home, but remember that there are sensible ways to deal with this dilemma.
Many buyers forget in the excitement of buying a home just how much it will cost to move. Whether you hire a moving company or do it yourself, moving can be expensive. You’ll need a truck, packing supplies and a way to pay (or simply thank) the people who help you to move.
The Things You Need For Your Home
Your home won’t come with everything that you need. You may have to buy a refrigerator, have some repairs done, or simply get furnishings for the home. Don’t strap your budget so thin that you won’t be able to buy a sofa until six months after moving into the home.
Dotting the I's and crossing the T's on a home loan application may seem like a daunting task, regardless of whether you're a first-time or experienced homebuyer. However, those who know what to expect when they fill out a home loan application may be better equipped than others to obtain a home loan that matches or exceeds their expectations.
When it comes time to fill out a home loan application, you'll need to provide a variety of information, including:
1. Personal Information
Allocate the necessary time and resources to provide as much personal information as possible on your home loan application. That way, you can make it easy for a lender to create a file for all of your home loan information.
Typically, your lender will ask for your Social Security number, date of birth, current housing information and school information. Provide accurate personal information at all times, and if you're uncertain about how to answer certain questions, consult with a home loan expert for additional support.
2. Employment Information
Where have you worked, and how much have you earned while you've worked for various companies in the past? As you complete your home loan application, you'll need to provide employment information to verify your current and past employment and income.
Usually, a lender will want you to provide the names, addresses and telephone numbers for any employers over the past two years. This will allow a lender to verify employment as part of the home loan application process.
You also will need to offer copies of your two most recent pay stubs to a lender. This will enable the lender to confirm your current income.
Lastly, if you are self-employed, you likely will need to provide a lender with a profit and loss statement for the past two years.
3. Financial Information
Tax forms, bank account information and asset details are some of the key parts of the financial information section of a home loan application.
Ultimately, the financial information section helps a lender verify if you have any outstanding credit lines, rental property and much more. This information will help a lender make an informed decision about your loan application and determine how much you are eligible to receive toward the purchase of a new house.
If you ever have questions at any stage of the home loan application process, don't hesitate to reach out to a home loan expert for help. This professional will be able to offer comprehensive insights to help you complete a timely, accurate home loan application.
In addition, your real estate agent may be able to put you in touch with various lenders in your area. With this housing market professional at your side, you can learn about different lenders and find one that can help you get the right home loan.
Finalizing a home loan application may seem like an uphill struggle. But if you act as a diligent homebuyer, you should have no trouble reviewing all sections of a home loan application. And as a result, you can provide a lender with relevant information and boost your chances of getting the perfect home loan.