It goes without saying that buying your first home is a major decision. Part of the American dream, Home ownership and the Independence it represents is also seen as a right of passage into Adulthood. When done with highly rated Real Estate Agents in your area it can also be a great investment and a step towards securing your financial future. Choosing the right agent is a major factor to the process. You need a group of associates that are dedicated to finding a place that will suit your needs provide the option for steady return on your property based on the estimated growth of the area you choose. Rob Wolf and Associates have the track record and the carefully constructed team to make sure that you are fit into a home you can afford and call home, whether it be a forever home, and investment property, or a starter home.
The First step is to decide if it is the correct time for you to purchase. Aside from what is going on in the market at the time you begin to consider buying the first thing you need to consider is your ability, financially, with stability and depending on the loan to also have a plan to live in the home for at least 5 years.
With the skyrocketing and scarcity of rental properties around the greater Sacramento area, including Folsom, Granite Bay, Roseville, Rocklin, El Dorado Hill, and even Auburn and Elk Grove its no wonder most are beginning to consider buying homes again at a younger age. After considering the am I stable and stationary enough to begin your home search and have a real estate office on your side like Rob Wolf and Associates in Granite Bay, it is time to talk to a loan officer in order to get pre-approved and find out how much home you can afford. Having the Pre-Approval letter makes any offer on a home you submit for stand out as the Seller already knows that there will most likely be no funding issues during Escrow.
- Find out home much home you can afford
And check your credit report, people are always shocked to see the amount of inaccuracies that are regularly on their credit and can have a serious impact on the outcome of their loan application.
Once approved for a home loan you can quickly find your desired area based on how much home and what amenities you need for example the amount of home you are able to get in Elk Grove, Orangevale, Antelope and Lincoln in size is much larger and usually newer than a home you would be able to afford in Folsom, El Dorado Hills, Roseville, or Granite Bay.
- Save for Down payment and Closing costs
Typically, you will need 3.5% to 20 % for your down payment, depending on the type of loan your lender is able to secure for you. However, its always a good idea once you reach that number to keep setting some money aside for any unforeseen costs that may arise during closing or move in cost and any items you may want to fix before moving in that are not part of the deal accepted by the seller to have taken care of.
- Get your documents in Order
Its important to have already organized all financial documentation that may be required to prove income and show tax records sometimes for more than just the previous year. Put yourself in a good position by organizing these at an early stage in your home search to remove the stress this may cause you otherwise. You need to verify your finances on the mortgage application: paystubs, W-2’s, bank statements and, if you have freelance or self-employment income, copies of your last two tax returns.
- Don’t Forget Home owner’s insurance
There are many great tools you can utilize online or by calling your current insurance agent several Auto insurances agencies also provide or partner with a home owners insurance broker. Another great source is Young Alfred.
By: Nick Marquez
Rob Wolf & Associates at RE/MAX Gold Granite Bay is one of the most innovative Real Estate teams in Placer, Sacramento & El Dorado counties.
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