So many times, real estate buyers get ahead of themselves, searching for properties without really knowing their buying limits…This now ‘wets your whistle’ for all of the latest housing ‘must-haves’ and who wouldn’t want to look/dream…? Many clients start searching for property without really knowing how much they can comfortably afford. So my #2 most Real Estate FAQ is what’s STEP-ONE in the real estate buying process? A: Determine what your comfortable buying budget for a home really is. Seek the assistance of a quality lender. By doing this, you won’t be setting yourself up for failure or disappointment. A lender will be able to run your credit (your credit score from the top 3 credit reporting agencies) and provide you your FICO score. This is the number that a lender uses to help put you into the best mortgage package for you…it’s all about credit worthiness, especially these days. A lender wants to know the likelihood you will repay your mortgage debt. Enough about credit scores and lenders.
The process of meeting with a lender ahead of your housing search is to determine your financial buying limits. This is the purchase price number you and your Realtor® will need to make sure your shopping limits are adhered to. As I indicated earlier, by doing this, you won’t be setting yourself up for failure or disappointment. Depending on the real estate property taxes of your area, this may impact the amount of your purchase as well. A high-taxed/high tax-valued housing area may drop your housing budget limit. This may be the same for all of the monthly payments pertaining to the home purchase. Home-Owner-Dues (HODs) for a housing development, townhome or condo vary widely, impacting the affordability factor of your purchase.
So Real Estate FAQ #2 is more of a statement than a question…Know (really know) your buying limits BEFORE you begin house-hunting. You waste time shopping out of your price-range and will become disappointed by getting a taste of properties out of your reach…think of a kid in a candy store…it all looks great, but what can I afford?
What are your thoughts?