5 Items to Determine Before Buying Your First Home
As a first time home buyer, you may not be aware of many moving parts that typically take place in a real estate transaction. You may also not be aware of some of the factors a smart consumer might consider before signing on the dotted line. That doesn't make you less qualified to buy, it just means you haven't experienced the home buying process yet to learn techniques. That's why it's essential to have a guiding hand that has your best interest in mind to help you along the way.
This week, Mortgage Headquarters of Missouri wants to share with you some items you'll want to determine before buying your first home. You will want to consider:
1. How much you can comfortably afford.
The pre-approval process, which entails full documentation and credit check, is the best way to determine the numbers that are right for you. Early in your search, you can identify any potential hurdles and focus only on homes truly available to you. You'll also want to look at the overall budget of the home and your other expenses and really determine if it's something you can truly afford.
2. How much cash you need to close.
"Closing Costs" are the fees which pay for the various services involved when you sell or buy a home. Sellers and buyers almost always negotiate to determine who will pay different portions of these costs. Knowing how much cash you'll need to close and, ideally, consolidating those funds into one account will help to prevent stress and ease the process later. Many items can factor into closing costs, such as titling fees, surveys, appraisal cost, various taxes, etc. Your lender and/or title company will provide you with a list of closing costs.
3. What kind of property you really want.
Single family, multi-family, condo, co-op, Victorian, Colonial, Cape, split, ranch, cottage, cabin, teepee...home types and legal distinctions are plentiful. Whether you are open to several styles or have your heart set on only one, narrowing your search will save time and prepare you to act when the perfect home hits the market.
4. Where you want to be and how long you'll want to be there.
You’ll want to strike a balance between buying what you can afford and buying what will accommodate your needs for longer than just the first few years. Assess your plans for growing your family and how your income might grow to match. Planning ahead is especially important in today’s market, when trading up tomorrow may mean both a more expensive home and a higher mortgage rate.
5. How the process works.
This is a time when the Internet doesn’t have all the answers. The process varies for many reasons, including area and custom. Generally, purchases include: Offer, Acceptance, Inspections, Contract, Loan Application, Appraisal, Title, Loan Approval, Closing/Funding and Moving In. Many little steps can fall in between, and the process won't always occur in a given order. It pays to speak with local experts early.
Your Mortgage Finance Professionals at the Lake of the Ozarks
If you're in need of a mortgage for a new home or have any other questions pertaining to mortgage lending, trust in the mortgage professionals at MHQ - Mortgage HeadQuarters to have your best interest in mind. We can help you choose a mortgage program that's right for you and your specific needs!
Mortgage Headquarters of Missouri, Inc
4824 Osage Beach Parkway, Suite 1
Osage Beach, MO 65065
Office: (573) 302-9990
Toll Free: (888)799-1206
Fax: (636)648-9917
NMLS # 1229111
This week, Mortgage Headquarters of Missouri wants to share with you some items you'll want to determine before buying your first home. You will want to consider:
1. How much you can comfortably afford.
The pre-approval process, which entails full documentation and credit check, is the best way to determine the numbers that are right for you. Early in your search, you can identify any potential hurdles and focus only on homes truly available to you. You'll also want to look at the overall budget of the home and your other expenses and really determine if it's something you can truly afford.
2. How much cash you need to close.
"Closing Costs" are the fees which pay for the various services involved when you sell or buy a home. Sellers and buyers almost always negotiate to determine who will pay different portions of these costs. Knowing how much cash you'll need to close and, ideally, consolidating those funds into one account will help to prevent stress and ease the process later. Many items can factor into closing costs, such as titling fees, surveys, appraisal cost, various taxes, etc. Your lender and/or title company will provide you with a list of closing costs.
3. What kind of property you really want.
Single family, multi-family, condo, co-op, Victorian, Colonial, Cape, split, ranch, cottage, cabin, teepee...home types and legal distinctions are plentiful. Whether you are open to several styles or have your heart set on only one, narrowing your search will save time and prepare you to act when the perfect home hits the market.
4. Where you want to be and how long you'll want to be there.
You’ll want to strike a balance between buying what you can afford and buying what will accommodate your needs for longer than just the first few years. Assess your plans for growing your family and how your income might grow to match. Planning ahead is especially important in today’s market, when trading up tomorrow may mean both a more expensive home and a higher mortgage rate.
5. How the process works. This is a time when the Internet doesn’t have all the answers. The process varies for many reasons, including area and custom. Generally, purchases include: Offer, Acceptance, Inspections, Contract, Loan Application, Appraisal, Title, Loan Approval, Closing/Funding and Moving In. Many little steps can fall in between, and the process won't always occur in a given order. It pays to speak with local experts early.
Your Mortgage Finance Professionals at the Lake of the Ozarks
If you're in need of a mortgage for a new home or have any other questions pertaining to mortgage lending, trust in the mortgage professionals at MHQ - Mortgage HeadQuarters to have your best interest in mind. We can help you choose a mortgage program that's right for you and your specific needs!
4824 Osage Beach Parkway, Suite 1
Osage Beach, MO 65065
Office: (573) 302-9990
Toll Free: (888)799-1206
Fax: (636)648-9917
NMLS # 1229111
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