Buying a homeI'd love to assist in finding your dream home.
Buy with Tony Nastri
Buying your first home can be a stressful process. Among the biggest stressors people face in a lifetime, a major mortgage makes the list. Between preparing your finances and documents for the mortgage process and planning a move, there is a lot to consider when you buy your first home. But you don’t have to stress when you buy with Tony Nastri!
“My philosophy is simple: clients come first. I pledge to be in constant communication with my clients, keeping them fully informed throughout the entire buying process. I know that if you’re not left with an amazing experience, I haven’t done my job. I don’t measure success through achievements or awards, but through the satisfaction of my clients.”
Steps to Buying a Home
Tip #1: Figure Out the Budget
It’s easy to tell when you’ve outgrown your current space, but it’s not-so-easy to determine how much more you can afford. That’s why it’s important to know how to get an estimate of your budgetary needs. If seeking a mortgage, most conventional lenders will only approve your mortgage loan if it’s value is less than 28% of your monthly income. Additionally, you need to consider how much debt you have. When getting ready to buy a house, include down payment considerations and 3% of the home’s value for closing fees in your overall budget.
Tip #2: Down-Payment Considerations
Conventional loans are a great choice for people who have average or above credit. Some conventional lenders will give special interest rates for buyers who offer 20% of the value of the loan as a down payment. But down payments range based on lender or type of loan. For instance, government-backed VA loans can have as little as $0 down for a qualified buyer. Consider your loan type and what down payment you can afford as a starting point in the buying process.
Tip #3: Always Get Pre-Approved
If you’re serious about buying a house with a mortgage, seek pre-approval through a lender. That doesn’t mean you’re locked in to using that lender. In fact, during the buying process you should shop around to make sure you find a loan with the best interest rate, fewest points and most convenient down payment options. But a pre-approval shows everyone who represents you throughout the process and the seller that you’re a buyer to be taken seriously. Some sellers don’t even want you to view their house without a pre-approval, let alone make an offer.
Tip #4: Work with a Realtor®
Buyers should seek representation throughout this process. In many cases, a buyer’s agent works for homebuyers without charging them a fee. That’s because in most home sales the seller pays both agent commissions at the closing table. For buyers, this equates to free representation. But it’s advisable to partner with a Realtor® versus an agent, because, while both are licensed, the latter doesn’t have to commit to the same bylaws and practices as a Realtor®.
Tip #5: Make an Offer
If you’re working with a Realtor®, it’s likely they are selecting houses to tour that meet your needs, sending you listing reports from the MLS and helping you select the right home. You are probably also looking at websites for homes in your area and making a short-list. But once you’ve found the perfect home, what’s next. That’s when it’s time to make an offer. Your Realtor® has the contracts you need to make an offer and will work with you on creating the best, most competitive one to close the deal. You can include things that benefit you like suggesting the seller makes certain repairs, or pays an amount towards your closing costs. Or things to sweeten the pot for the seller, like promising a quick close, or waiving a seller’s repair burden. Your Realtor® can help you get creative and put together an offer that meets your needs and will be accepted by the seller.
Tip #6: Ready, Set, Close!
If you’ve gotten this far in the process, it’s likely you’re heading to the closing table barring any unforeseen obstacles. Because obstacles do sometimes occur, remain flexible and keep in close communication with your Realtor®, the title company and the lender. Before closing, the title company will provide you with a balance sheet that shows you what is due at closing. When you come to close, you need to have your funds accessible —this usually takes the form of having a Cashier’s Check on hand at closing, or performing an advance wire transfer— and have your signing-hand ready. Most often, the closing takes place at the title company with your Realtor® present.
Go Forth and Buy!
If you’re looking to buy a house — you don’t have to wait for the market to turn! Sure, it’s a seller’s market right now and likely will be for at least a couple more years. But with a surplus of buyers and not enough home inventory, it’s an awesome time to consider new construction. With developers creating customizable home models, you may find that you can afford the home of your dreams.