Find out How Much Mortgage Can You Afford
You can save yourself a lot of wheel-spinning if you take a
minute to figure out how much mortgage you can afford. The first
step is to call Ryan Mortgage and get pre-qualified. We'll
be able to give you a price range to shop in.
We'll also give you a realistic idea of all the costs
involved in the transaction including both closing costs and
prepaid items (property taxes and homeowners insurance).
One of our favorite pieces of advice is to live a few months
as though you had the mortgage/tax/insurance payment that you're
thinking about. Let's say you're considering a mortgage
payment of $1,300 and your current rent is $900. Put an
extra $400 in your savings account each month (the difference
between your rent and a potential mortgage) so you can make sure
that you can handle the payment. Better yet, you'll have
extra money to put down on your new home!
Make your wish
list. Focus on the features you want in a home: 2 bedrooms
or 3? 1 bath or 2? Garage or no garage? Knowing what you're
looking for will help you focus your search. And it will help
your real estate broker, too.
a Real Estate Broker
You'll want to start searching for a broker as soon as you
decide to buy a home. Talk to several and find someone you think
you'll be comfortable working closely with. Many of your friends
and relatives have probably bought and sold their homes through
brokers. Ask them who they used and what their experiences were.
We'd also be glad to refer you to a broker to help you.
When you talk to prospective brokers, ask questions about the
areas and types of homes in which you're interested. Do they
seem knowledgeable? Most important, is their personal style a
good fit with your own?
and Homebuying Programs
Many different kinds of mortgages are available to you. We'd
be glad to take all the time you need to understand your
options. The most favorable interest rates are available
with 20% or more down, however we have programs even if you have
no money to put down.
for a Home
Now you really begin house-hunting. Your real estate broker
will be able to find listings for you, based on your wishlist.
But don't stop there! You can do your own looking, and then ask
your broker to show you the house. Start with the Internet. Pick
up real estate flyers at local grocery stores and convenience
stores. Read the real estate sections of your local newspaper.
Drive around neighborhoods that interest you and write down
addresses where there are "for sale" signs. Go to open
houses. Try everything!
When you make an offer on a home, it's a good idea to make
your offer contingent on a home inspection, conducted by an
independent authorized inspector. You will have to pay for this
inspection yourself, but it could keep you from buying a house
that will cost you far more in repairs, down the road. If you
are satisfied with the results of the inspection, then your
offer can proceed. If you aren't, you may want to negotiate,
asking the seller to pay for certain repairs or asking for a
Every lender will require you to get an appraisal of the
house you want to buy, to make sure it's worth the money that
you're borrowing. The typical cost of an appraisal is
Lenders require that you have homeowners insurance, to
protect both your interests and theirs. Like everything else, be
sure to shop around for insurance that fits your needs.
Nowadays a typical homeowner's policy will cost $600-$800 for a
year. You'll need to pay the first year's premium in
advance. The lender will then escrow 1/12th of that each
month and make your 2nd year's payment for you.
Finally, you've gone through the whole process, and you're
ready to go to "settlement" or "closing." We
know you'll be excited, but be sure to read everything you sign!
There will be at least two attorneys involved in the
transaction. One representing the person that's selling
you the home and the other will be representing the lender (that
will cost you about $500). Additionally you can either
hire your own attorney to represent your interests or you may
higher the lender's attorney to represent you as well. If
you choose to hire the lender's attorney for your personal
representation (which will save you some money).