5 things to make sure you are ready to purchase your home
Roseville, Calif.- If you are about to make a New Year's resolution to stop renting and buy a home, you need to know a few things to make this resolution successful.
Make sure you are ready to be a homeowner which is a large commitment.
Ask yourself these questions: Is your job safe, do you want to live in this area for the next five to seven years; are you ready for the extra work that comes with a home?
What are your "must" have items?
Don't expect to find everything you desire in a home but it is important to know what you are willing to compromise on and which items you are not. A garage or a house with a yard big enough for a garden is a must. Maybe you are willing to buy a home with fewer bedrooms if it is in a great location. Check out different areas, home styles and listings online to get a feel for what is important.
Determine what you can afford to pay and remember the mortgage is not the only cost.
You will need a down payment which may be 20 percent of the purchase price if you want to avoid mortgage insurance (PMI). Remember the cost of insurance, taxes and maintenance. Talk with a good lender who can help you determine what you qualify for and what you can comfortably afford.
Get preapproved for your mortgage.
There is nothing worse when looking to buy, than falling in love with a home you cannot afford. Work with your lender to get pre-approved. This will save time, heartaches and make the entire process of buying easier. In today's housing market most seller will not even consider your offer if it is not accompanied by a lender letter.
Find the "right" helpers.
Your Realtor and Lender will play key parts in helping you find and buy a home. These should be people you trust and communicate well with. Don't hesitate to do some research and ask friends and family.