Here are the 5 questions new home Buyers ask most often about buying a house in
How does buying a home work? I don’t know where to start.
This is the main question asked by many first time home buyers. A good Realtor will take the time to walk you through each step of the process. But, don't try to remember them, it will get too confusing. Barbara guides buyers she works with through each step, educating and advising you, and letting you know what's next.
Usually a home Buyer has several thousand dollars saved, and wants to use this money as a down payment. Now, don't panic if this isn't you! Some Buyers have no money available to them because of situations they are going through. I can help you with this, too, as there are many financing options available to Buyers. We'll work together to match you with a great mortgage company and the right option.
Buying a home is a multi-step process that first includes figuring out your
purchasing power (how much house you can actually afford). Determining your purchasing power is done by a mortgage lender. The lender reviews your annual income amount, your current debt, and your credit score/s to determine your purchasing power and issue the Buyer a mortgage pre-approval.
You can use the mortgage calculator to give you an approximate idea of a mortgage loan repayment amount. You need to know the amount you want to borrow and a recent interest rate number to plug into the calculator. The monthly mortgage payment that is returned to you is just an approximate dollar figure that consists of only the loan principle and interest. To this amount the property tax and home owners insurance must be added to give you a total mortgage payment amount. But, use the calculator to get you started with what you can afford to pay each month.
Next, you start shopping for the home that’s right for you. This is the fun part and begins after you figure out how many bedrooms you need, how many bathrooms, where you want to live, and other details.
Once you find a place you like, you work with a Realtor to determine the best offer to make the Seller. Sometimes your first offer is not accepted. If it’s turned down then we start negotiating.
Once you come to an agreement on price, the contracts for sale are drawn up. We'll spend about an hour reviewing your contract. The agreement is presented to the Seller for signatures. You then have three days for an “Attorney Review” period, this gives you the time to have an attorney look over the documents and make sure everything is OK for you. Do you need a lawyer? Well, some people don't think so, and some people do. I am not an attorney and cannot give you any legal advice. It's really up to you to decide whether or not you need one.
A purchase typically depends on a home inspection, a termite inspection/certification and an appraisal by the lender. Once these are done, you will receive a mortgage commitment and approval from your lender. If anything arises from the inspection, it's my job to ensure these problems are completely resolved before we go to Closing. Then, we go to settlement, and you move in!
You might be asking yourself Where do I get a mortgage? How does that work?
OK, that was two questions, but since they’re related we’ll let you slide and lump them together.
You contact a few lenders (either banks, credit unions, or mortgage companies) who ask you a series of questions about your income, current debt, and credit history. They use that information and run a credit report to determine the amount of loan you qualify for (that's the purchase power referred to above).
You can go to the bank or credit union you normally bank with or your real estate agent can put you in touch with several secure, reputable lenders that she's worked with recently and who take great care of her clients.
How can I get a mortgage if my credit is not exactly perfect or I don’t have money for a down payment?
Many potential people that could be Buyers think that since they have no money for a down payment they cannot purchase a home. This is not the case. Barb has worked with many other clients in this same situation. She has experience finding the financial assistance you need. There are several state and private programs that helped other buyers.
Since the market is a little tough right now, making a low ball offer is a good idea, right?
Well, this really isn't a good negotiating strategy. If the home is truly priced at what it’s worth you run the risk of offending the sellers who could then flat out reject your offer and refuse to talk to you further. Not good, especially if you love this home. Worse yet, you could lose out on a home you really love because someone else could come along and make a higher offer. Barb always gathers information on recent market transactions to help her buyers determine the best price to offer. She doesn't want Buyers to lose the house they love - but she also doesn't want them to pay too much for it either!
When do I actually get to move in to my new home?
Well, you have to go to settlement first. That’s when you actually get the keys -- assuming you’re buying an existing home. If you’re buying a brand new home that’s just been built or is being built, you have to wait until you get a Final Certificate of Occupancy.
This is a lot of information to digest. And, there is a lot more for you to know. However, you can be confident in Barbara's skills and experience to get you the home you love at the best possible price, while having the best possible home buying experience.
Ready to get started? Give Barb a call, drop her an email, or fill out the Contact Us page to get started.
Barbara Jeffries
Real Estate Agent
Prudential Fox & Roach Realtors
1001 Tilton Road
Northfiled, New Jersey 08225
Office: 609-646-1900 Direct: 609-677-4497
Cell: 609-457-7582
Fax: 609-677-4477
Email: barb at barbarajeffries dot com (just write that like a normal email address)
