Information for Buyers
The RL Wright Group is committed to providing all the tools you need
to buy or sell your home.
Below are some of the most important things you need to know.
GETTING STARTED
If you're just
starting to look for a home, ask yourself a few questions:
-
▪ Where do you want to
live?
-
▪ How close do you
want to be to schools, shopping, or work?
-
▪ What kind of house
would you like or need?
-
▪ What style of home
are you looking for?
-
▪ How many bedrooms
and bathrooms do you want?
-
▪ What kind of yard
would you like?
-
▪ How much house can
you afford?
-
▪ Have you consulted a
Realtor or mortgage lender to determine the size of the mortgage you
would qualify for?
Here are a few tips
to help you get organized:
-
▪ Pull a credit report
on yourself and make sure the information is accurate. If you find
any errors take steps to correct them immediately.
-
▪ Start saving money -
you'll need to have cash on hand for a down payment and closing
costs.
-
▪ Don't incur any
additional debt. Pay down your credit cards - and don't apply for
any new ones. Don't make any major purchases on credit - buy the
furniture or car later.
-
▪ Browse through real
estate advertisements in the newspaper and Homes magazines. This
will give you a good feel for the types of homes that are on the
market and what they cost.
-
▪ Visit open houses on
the weekend. It doesn't cost anything to look, and looking at a few
different homes might give you some ideas for things you'd like in a
house but haven't considered.
-
▪ Contact a Realtor.
Your Realtor can help you determine how much you can afford, and
they can provide you with information on homes that may interest
you. The Realtor will also help you complete all of the necessary
forms when it comes time to make an offer.
HOW
MUCH HOUSE CAN YOU AFFORD?
Simply
put, you can afford a house that costs as much as the largest monthly
mortgage payment you qualify for.
An easy
way to estimate the size of mortgage you qualify for is to take your
gross monthly income (that's before taxes and other deductions) and
multiply it by .28. This works out to just over 1/4 of your gross
income.
Mortgage
companies use something called qualifying ratios to determine
how much they'll lend you. Most mortgage companies use either a 28/36
ratio or a 25/33 ratio. The first number in each pair is the
percentage of your gross income that the lender would consider
acceptable as a monthly mortgage payment (i.e. if you make $3,000 per
month, 28% of that is $840 per month).
The
second number in each pair is used when all debt payments are
considered, not just the mortgage. (i.e. if you make $3,000 per month,
but also have a $250 a month car payment, 36% of $3,000 is $1,080,
minus the $250 car payment equals $830).
As you
can see, in this example the numbers work out to be almost the same.
Obviously if you have more debt you would qualify for less.
WHY
SHOULD YOU WORK WITH A REALTOR
Working
with a professional Realtor to buy your home is the best idea for
several reasons:
-
▪ They'll analyze your
financial situation to help you determine how much you can afford.
-
▪ They're familiar
with the process of buying a home and can explain things to you.
-
▪ They can easily
access information on all properties listed for sale by Realtors in
your area.
-
▪ They can set up
appointments for you to see homes that interest you.
-
▪ They'll help you
complete all the necessary paperwork when it comes time to make an
offer.
-
▪ They'll help you
arrange financing.
-
▪ They'll be there at
closing to answer your questions and make sure everything runs
smooth.
CHOOSING A REALTOR
Searching for your dream home can be a time consuming experience.
Working with a professional Realtor will make the process much more
efficient.
Since
most people spend a fair amount of time with their Realtor, it's
important to choose a Realtor you feel comfortable with, and one who
is responsive to your needs. The following questions will help you
decide if a particular Realtor is right for you:
-
▪ Do they return your
phone calls?
-
▪ Do they ask you
questions to determine what you want/need in a house?
-
▪ Do they perform a
financial analysis to help you determine how much you can afford?
-
▪ Do they explain
things clearly?
-
▪ Do they suggest
financing methods?
-
▪ Do they seem
knowledgeable about the community?
-
▪ Do you feel
comfortable spending time with them?
If the
answer to most of these questions is "Yes" - you've found yourself a
great Realtor.
If you
find yourself answering "no" to many of these questions, or to any
individual questions that are important to you, you should keep
looking until you find a Realtor you feel comfortable with.
|
