Five Steps to Homeownership
The purchase of a home involves a complicated mix of emotional and logical decisions. As a buyer, you look for a home that appeals to your heart, mind and soul. You hope to find the right place that captures your imagination, makes sense financially, and fits your plans for the future. These details are important and as real estate professionals, we understand this complex mix of emotions and combine all of our skills and experience to find you a perfect home. Step 1. Differentiate want from need Just as with any other major buying decision, the first step in purchasing a home is to determine what it is you want, versus what it is you need. Begin by determining what is most important to you about a new home. Location, commute, style of property, community and amenities are all things to consider. You also need to examine your budget and determine how much you can and are willing to spend on housing costs. Step2: Do your homework Your homework regarding homeownership is twofold. First, you must investigate the potential home and all that goes with it – the neighborhood, the lifestyle of the community, and to what degree the home fits your needs. A real estate professional is trained to help navigate you through this process. The second part of your homework includes understanding how much you can afford to pay for a home. To make a sound decision on what to buy, where to buy, or whether to buy at all, you need to understand the costs that come with homeownership. Costs of Homeownership: Down payment- The amount of money outside of or not covered by mortgage funds that the homebuyer puts down on a home at the time of sale. Closing or settlement costs- Expenses associated with finalizing the transfer of ownership of the property. Earnest money deposit– A deposit on the home purchase to assure the seller that the buyer is serious about buying the house. (refunded towards your purchase at settlement) Home inspection- An inspection of a prospective home done by a professional, soon after an offer is made and a contract is ratified to establish the structural and mechanical integrity of the house. PITI- An acronym standing for the total of your monthly principal, interest, taxes, and insurance. These monthly property taxes and insurance payments are generally made along with your loan principal and interest payments which are held for you in a special reserve account, called an escrow account. Maintenance and operating costs- Whether the house you buy is old or new, big or small, in the city or in the suburbs, you’ll have maintenance and operating costs. Examples of these costs are roof repairs, new refrigerators, and landscaping. Don’t forget to plan for these expenses when buying a home. Step 3: Pre-Qualify for a mortgage A mortgage loan pre-qualification is simply an estimate of how much house you can afford and how much money a lender would be willing to loan you. The best time to get a pre-qualification is right at the beginning of your home buying process, before you even start looking at houses. To get pre-qualified, you should schedule a time to meet with a reputable lender. The process normally takes 10 minutes or less. If you would like a referral to one of the area`s top lenders click here Step 4: Make your purchase Once you know what you are looking for, it’s time to start looking. Most home buyers enlist the aid of a real estate agent. Real estate agents can provide buyers with assistance when searching for homes, providing objective opinion, determination of market value, negotiating, as well as help thru the intricacies of the purchase contract. Hiring a buyers agent can save you time and money, as well as reduce your liability during the contract period. Step 5: Maintain your purchase Once you have purchased your home you are then in-charge of upkeep and maintenance. Your care and attention to detail can help your home maintain its value and appreciation. To ensure our buyers maximize this opportunity, we offer a DC Insiders Buyer Select Program, designed to help you through the first two years of home ownership, call for details! Ready to buy? Contact DC Insiders today for a confidential consultation, we look forward to working with you!
