Follow These 5 Tips to Ensure a Successful Home Purchase

Your Guide To A Seamless Home Purchase

1. Get your pre-approval letter.

   There are a few reasons to do this, but mainly, you want to know how much you can afford. Based on your debt-to-income ratio, your lender will let you know how much of a home you can afford and what your monthly payments will be so you can determine if you are comfortable purchasing the amount of home you want. Make sure you follow what I call the “Rule of Twos” and bring in two bank statements, two pay stubs, your two most recent tax returns, and make sure you talk to at least two lenders in order to compare and contrast fees and rates.

2. Be ready to make an offer.

   The market is already very busy and it’s only February, which means it will get even busier as spring approaches. So, if you see a home you love and feel like it’s a perfect fit for you, be ready to make an offer because homes will go quickly. Also, be prepared for a multiple offer situation by making sure your agent knows exactly what to do to make your offer stand out.

   Be ready to make an offer.

3. Understand the costs involved with buying a home.

   Purchasing a home isn’t as simple as setting up a loan and starting to make payments the way it is when purchasing a car. There are a lot of extra fees that you need to be prepared for, such as closing costs. Your Realtor can sometimes negotiate those costs and ask the seller to cover them, but that could weaken your offer.

4. Don’t establish a new line of credit.

   I have had clients who have gotten through the entire process, but were denied a loan at the finish line because they bought a new car or set up a line of credit to purchase appliances and furniture for the new home. Don’t do that! Wait until the day after closing and you’ll be fine.

5. Be prepared for the stress of buying a home.

   Purchasing a home is a huge undertaking, so minimize your potential stress by packing as much as you can in advance and making sure you work with an agent. We offer a free moving truck service if you work with us, and we can make sure your home buying process goes smoothly from start to finish.