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6 Tips To Get Your Dream Home
6 Tips to Get Your Dream Home
The beginning of the year has come and gone and after some serious thinking and soul-searching, you’ve made up your mind: 2018 is the year you’re going to buy a home. You may have played with a few online mortgage calculators and the numbers make sense. You think you know what you can afford. You’re ready to invest in yourself! And, now you can officially kick off the home search. So, what’s next? Let me walk you through the process!
TIP #1 - To get your dream home is to hire a realtor that has a home buying strategy and loves to win.
In the age of Zillow, Trulia, and Realtor.com, it’s easy to want to skip over this crucial step. However, partnering with a real estate agent is one of the best ways to protect yourself when buying property. An agent’s job is to represent buyers or sellers in a transaction. We realtors follow the “law of agency,” which states that our fiduciary responsibility is to you, the client. Above all else, we must serve our clients and put YOU first. For home buyers, this is a free service. Realtors only make a commission at closing, and the seller pays the commission. You as a buyer pay us nothing! Real estate agents must invest attention, time, effort, knowledge, and money into your home buying process. We have exclusive access to any listed property, can analyze market data and trends, and we will support you through one of the biggest (and most expensive) events of your life. Lastly, we are professional negotiators who fight to get our buyers their dream home.
TIP #2 – To get your dream home is you need to be pre-approved for a home loan and working with the "right" mortgage lender.
Pre-approval involves submitting a mortgage application complete with verifying documents like tax returns, W-2s, pay stubs, etc. But, the key here is making sure that you get that loan pre-approval from a mortgage lender that close your home loan quickly. What do I mean by quickly? You need a lender that can close your loan in 10-21 days (25 at the most). This is part of our 3 weeks to Keys Home Buying Strategy. The reason for the quick close is in a seller's market (like the one we are in now), a quick close could be the difference between you getting the home or not getting it. If there are multiple offers on a home that you are wanting to buy, the only thing that may separate you from the pack is a quicker close. Not getting pre-approved by a lender that can move quickly can send a message to a seller and the listing agent that you aren't taking your house hunting, or house buying for that matter, very seriously. Having you pre-approved with the right mortgage lender is my first opportunity as your realtor to advise you and earn your trust. Remember this if nothing else, all lenders are not created equal. A lender can make or break your entire dream of home ownership. Most of the great realtors have some great lenders on speed dial. You could be pre-approved by a great lender today, be out looking for homes tomorrow and in as little as 21 days I could hand you the keys to your dream home. So, let me recommend a great lender to you so that you may be able to buy your dream home.
TIP #3 – To get your dream home is to strategize with your realtor and lender about the different loan options and down payment options that are available.
There is a huge misconception out there that potential home buyers need a large down payment to purchase a home. The mortgage lenders that I work with hear this all the time. Especially, from first time home buyers. Most home buyers believe that they must have a minimum of a 20% down payment. However, the truth is there are several ways to have 0% down payment or a low-down payment such as;
VA Loans (Veterans Administration Loan) – 100% financing loan for military veterans and active duty personnel and is a 0% down payment loan. If you are a veteran, you have earned this amazing benefit.
USDA Loans (United State Department of Agriculture Loans) - This is a 100% financing loan also. A USDA Home Loan is a mortgage loan offered to rural property home buyers. This is also a 0% down payment.
FHA Loans (Federal Housing Administration Loans) – Usually only a 3.5% down payment is required but there are down payment assistance programs that can help pay your down payment and closing costs.
Conventional Loans - that only require only 3 to 5% down payment in most cases.
There are a lot of options for mortgage loans. However, the key here is having a plan and once our team assesses your potential homebuying situation and needs, we can literally have you preapproved within minutes and potentially out looking at homes right away. It doesn’t have to take weeks, months or longer! Many home buyers are often afraid to begin the home buying process, because of myths they’ve heard from others. Proper education will eliminate those myths! Buying a home is an important step to building a secure financial future. But, because of some common misconceptions, many people believe homeownership is out of their reach. Don’t let these negative myths keep you from the personal and financial rewards of homeownership.
TIP #4 - To get your dream home is to realize rents are rising and now is the time to buy.
How will realizing this help you with getting your dream home? Let me tell you. Rents in California are going up. In fact, in the greater Sacramento area, rents are up a whopping 7.4% year over year. The greater Sacramento area has the third highest rent increase in the nation. So, keep in mind that when you rent, your rent amount can and will change and most likely will go up. When you own your home, your payment is your payment is your payment. On a 30-year fixed mortgage, your payment will never change unless you take out a home equity loan or refinance to take cash out. If you keep that loan in place it will never, ever, change and you will be smiling like a kid in a candy store when you have paid your home off and other people that waited are still paying rent. So, why keep renting when you could own an amazing home.
TIP #5 - To get your dream home is knowing your non-negotiables and deal breakers.
The most common property non-negotiables usually deal with the number of bedrooms and bathrooms, the square footage of the home, the size of the lot and whether it is a one-story or two-story. You can also include whether the home has a pool or not, is in a good school district, has natural light, has good curb appeal, has storage and the list goes on. As far and deal breakers go; some common deal breakers are homes on streets with a lot of traffic or near freeways, homes next to apartment complexes or neighbors with barking dogs. Also, homes with no front yard, homes next to commercial buildings or large water towers or power lines. Knowing your non-negotiables and deal breakers will help you, and as your realtor, save a lot of time and frustration. Lastly, with any home don't expect perfection. Why? Because you will never find it.
TIP #6 - To get your dream home is to know the answer to this question. What if your realtor found you the perfect home tomorrow?
Your answer to this question simply should be, "If I find the ideal home, I am ready to put in an offer right away." Yes, this question helps me as your realtor to gauge your readiness and get insight into your ideal timeline. Now, if you’re a first-time buyer, this is the time for your agent to also discuss the escrow and the closing process. At this point, you should already know about your earnest money deposit, down payment, recommended inspections, costs of those inspections and expected closing costs so you can be ready to pounce on a great home!
In closing, with my 3 Weeks to Keys Home Buying Strategy, you literally could speak with one of our preferred lenders today and be out with me shopping for a home tomorrow. You could be in escrow in hours or just a few days. And, I could be handing you the keys to your new home in 21 days or less. Why wait another minute? Let me help you get your dream home now.