Buying a home is a wonderful goal many hope to attain. However, this experience can be a complex experience if a person goes into the situation without fully understanding all of the actions needed to be taken. If you are considering purchasing a home in La Jolla, CA following the necessary steps can help you focus on the excitement of purchasing a home without having to deal with worry.
What is Your Credit Score?
Knowing your credit score is the first step in the home buying process. Good credit will be one of the biggest determining factors on whether or not you receive a mortgage loan. Good enough credit to receive some type of mortgage loan is considered 640 and higher. There are free websites were you can check your credit score. If you should find that your credit is too low to receive a loan do not be discouraged. Do the necessary research on ways to build your credit score, take the necessary steps suggested and once your credit is strong enough you are on your way to purchasing your home.
What Can You Afford?
When seeking to purchase a home you must be fully cognizant of what you can afford. First you must take into account how much your earnings are. Then you tally up your current expenses. Once you see what is left over, this will give you an idea of how much money you have available to pay a mortgage. A more practical way to determine how much you can afford is to seek properties that will have you paying a mortgage no more than 25-30 percent of your monthly income. Anything above those figures is more than likely a property you cannot afford.
Know Any Good Realtors?
A good realtor can be the number one way to avoid stress in your home buying process. A good realtor will work diligently to ensure you get the property you want, in the price range you want with as less stress as possible. Your realtor will act as your liaison for everyone involved in your home purchasing process. A good way to choose the right realtor is to speak to residents in the La Jolla area who have purchased homes in order to get their recommendations for a good realtor. If you’d like to see what we can do for you, contact us.
The Importance of a Good Lender and the Right Mortgage
A good lender will carefully examine your financial situation in order to match you with the right loan for you. They will be the best resource to see what properties you can realistically afford and what type of mortgage would be best for you. There are several types of mortgages, which includes: a conventional loan, FHA loan, and VA loan. Your lender will discuss with you the various options and decide which loan you qualify for. Once your lender determines which mortgage will best suit you and the amount, they will give you a pre-approval letter that you will use to begin making bids on homes.
What is the Right Home for You?
Choosing the right home will depend greatly upon your desires and your ability to upkeep the home. Make a list of the attributes you want in a home, while carefully considering all that it will take to maintain the home. Do not forget to list the things you do not want in a home so you can have a clear concise idea of what exactly it is you want when your realtor begins to show you homes.
Ready to Bid?
Once you find a home you like, you can place a bid in for the property. Generally people bid about 5-7% lower than the asking price. This will give you room to maneuver in the negotiating process. Be prepared to bid 3-5% higher should the property you like garner a lot of interest and you have to go into a little bidding war. Just be sure not to overpay for a property. This would not be a wise financial decision. If you should win the bid on your desired property, be prepared to cover closing costs along with your down payment. Sometimes the seller takes on the responsibility of the closing costs. This can be negotiated.
Buying a Home
La Jolla, CA is a beautiful area to purchase a home. If you follow the necessary steps in purchasing your home, the excitement of the journey will far outweigh any anxiety that may arise.