So you are ready to buy a house! Congrats!! This is a huge decision. But are you really ready to buy a house??
You have signed up online for all the new listings in your area, scoured realtors.com, went to every open houses and finally figured out what you want. Now you are ready to start seeing houses, put an offer on a house, and live happily ever after in your dream home. But how? For first time home buyers this process is nerve wrenching. Where do you start?
First step, visit your bank or a mortgage broker. Why? You need to know if you are pre-approved to buy a house. So much has changed with the lending rules that you need to know exactly what your max budget is. From there you need to figure out what you feel comfortable paying monthly so that you are not house poor. Finally, but certainly not last, you need to find out from your lender if you “have” to put in a financial clause in the offer.What is a financial clause? In simple terms, it is a condition in your offer that allows you a certain amount of time, between 5-7 business days, to make sure your lender will loan you the money for this property. Sometimes your lender will require an appraisal to see if the offer you are putting in is in line with the value of the house (more to come on this in my future blogs). In this very competitive market putting clauses in your offer may cause you to lose in a bidding war but it is there to protect you. And don’t get discouraged the right house is out there it just may take some time so be patient.
You’re pre-approved, know your budget and what you are comfortable paying monthly and armed with all the information you need to know, what is your next step? Get a Realtor! Stay tuned as I will talk about this in my next blog and give you some great tips in how to find a good Realtor.