TIPS ON HOW TO BUY A HOME

 

Most people who want to buy a home seek out a Real Estate Professional to guide them through the process. Lydia has detailed knowledge of the Marin market, the experience to search out properties to match her clients' interests, and skill in helping to find the way to make the process of buying successfully affordable. It is important to reduce the stress involved in making a large financial purchase and to maximize the chances of making a solid deal that will be to your benefit. Lydia knows what is on the market by being connected with it daily. Our technology is tops, we are connected 24/7, and ready to go to work for you!

LYDIA WILL:

  • Promise to meet or exceed all of your expectations in your purchase of property
  • Search thoroughly for properties to match your specific needs
  • Show you homes in any neighborhood of your choice
  • Show you how to qualify for a home loan
  • Discuss the various ways of financing your purchase
  • Help you find the best financial person and the lowest interest rate for your loan
  • Present your offer on a home and actively negotiate for your purchase
  • Write and fully explain purchase documents before you sign anything
  • Arrange a favorable contract in which you are legally protected
  • Walk through the home with you prior to escrow closing and answer all your questions
  • Attend escrow closing meeting with you
  • Exclusively represent you in the negotiations
  • Keep you fully informed along the way and keep in touch after the sale is closed

BUYING: Frequently Asked Questions

Please Click on the questions you want answered.


How much can I afford?

When planning on buying a home, each person's situation is different and a good financial plan requires a careful review of your balance sheet. Some of the important variables to consider are listed below:

Is this a first time in buying a home or do you have equity in an existing home?

Are you moving up to a larger home or seeking to improve your location or do you want a smaller place and to take equity out of your existing home?

The main question to be answered is if you need a mortgage loan, how much can you afford in a monthly payments?

A quick method of estimating the size of a loan payment: take your gross monthly income (before any deductions or taxes are taken out) and multiply this figure by 0.28. Most mortgage lenders use ratios to guide them in their estimate. Lender A uses a 28/36 ratio with the first figure representing the percentage of your gross income the they would accept as the maximum monthly mortgage payment you qualify for at this time. Thus a person with $5000. gross income would qualify for a payment of $1,400. The second number in the ratio includes your gross monthly income and subtracts all your debt payments. Lender A has a 36% figure and would calculate your mortgage payment amount as $5000. x 36% = $1800 and then would subtract your monthly debts, e.g., an auto lease payment of $500 leaving you with a $1,300 payment for your mortgage. The figures are fairly close to one another but the more debt payments you have to make each month, the less you will have left over for a mortgage payment. Lender B uses a 25/33 ratio and is more conservative in qualifying an applicant for a loan.

Lenders will want to look at all streams of income and assets you have as well as your debts. Your detailed credit report is reviewed. Therefore, it is important that you know what is on your report and to correct any errors. The better your credit standing, the better terms you will have in qualifying for a loan. A very skilled mortgage Broker will be able to help you with finding an instrument that fits your financial situation. Right now interest rates are decreasing and terms are favorable for mortgages. There are many types of loans to consider and you will need expert advice to select what is right for you. Both your Real Estate professional and your Banker or Mortgage Broker will be able to help guide you in this process.

A letter that Pre-approves you for a specified loan amount is essential to make an offer on a house in today's market. This is the Lender's statement that shows how much they will loan to you to purchase property. With this in hand you can go ahead and be considered a serious prospect qualified to bid on a property up to this amount.

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Does the Realtor represent you?

I believe that it is important that the Buyer is represented exclusively by their Real Estate professional. This positions you as the main focus of the transaction. Your agenda is the significant one. Be clear with your Realtor that they are working for you to achieve your purchase at the best possible terms.

Remember that your Realtor provides a free service when representing a Buyer. The Seller of the property pays the commission and they are represented by a separate agent to look after their interests. The Buyers' Realtor must have the skills to:

  • Access all the properties for sale in your area of choice
  • Set up appointments for you to visit homes
  • Discuss the pros and cons about a property with you
  • Guide you in financing and work with your mortgage broker/banker
  • Prepare all the paperwork and present your offer on the home you choose
  • Put you in a favorable contract when closing your offer on a home
  • See you through the close of Escrow and remain available to provide help and advice even after you move into your new home

Refer to the section that poses questions that one should consider when selecting a Real Estate professional to represent them. This will give you some more information to make a good choice in Realtor when you are a Buyer.

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Which mortgage is right for me?

There are many types of mortgage instruments on the market today and they are often confusing to people who are trying to finance the purchase of a home.

  • Is it in your best interest to make a conventional home loan that spans over the period of 30 years at a fixed rate of interest amortized over this time?
  • Is a shorter term Adjustable Rate Mortgage of five or seven years going to be cheaper for the time you plan on living in this home?
  • What about a second mortgage or Home Equity line of credit? Can these be used to get me into a property and meet my financial goals?

These questions are best answered by a professional Mortgage Broker with experience in helping home Buyers with structuring their finances to meet specific goals. In each case there will be special considerations and it is better to consult knowledgeable people who are licensed Mortgage Brokers and associated with many resources for loans rather than specific products their company advocates.  Compare rates and the fine print of the available mortgages.  Money is tight and in this time of flux lenders are very picky and may decline a loan.  Some people got into sub-prime situations with major financial problems due to bad advice from mortgage companies that wanted business.  You need a professional who will diligently protect you from high risk situations and unsound mortgages.

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What does the Buyer pay for?

At the close of Escrow the Buyer is expected to pay for the following:

  • Title Insurance premiums
  • Escrow Fees
  • Document preparation
  • Notary Fees
  • Recording charges for all documents in the Buyer's names
  • Tax pro-ratio (from the date of acquisition)
  • Homeowner's transfer fee
  • All new loan charges for all documents in the Buyer's names
  • Interest on the new loan from the date of funding to 30 days prior to the first payment date
  • Assumption/Change of Records fees for takeover of existing loan (if applicable)
  • Inspection Fees (property, termite, roof, soil, etc. as needed)
  • Fire/Hazard Insurance Premium

The Buyer does not pay for any sales commission to the Realtor.

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For more information, Call 415-785-7750 or
Fill out our Find Your Ultimate Home Form
and ask Lydia to go to work for you. 
She delivers comprehensive client service with outstanding results

in Marin, Sonoma, and San Francisco Bay Area Real Estate.

 
 

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