Guide to Buying a Home

Before you purchase a home, it’s important to understand all the steps and costs involved. You’ll want to make sure you have properly considered what you can afford, how the market conditions will affect your budget and purchase options, and what financing opportunities are available. Below I’ve outlined some of the most important steps to consider when getting ready to purchase a home.

Determine What You Can Afford

Purchasing a home involves both one-time costs and ongoing monthly expenses. The largest one-time cost is the down payment, which typically represents between 5 – 25% of the total price of the property.

In addition to the actual purchase price, there are a number of other expenses that you might be expected to pay such as legal fees, legal disbursements, appraisal fees, land transfer tax, and property insurance.

Typical monthly costs incurred with home ownership may include mortgage payments, maintenance, insurance, condo fees, property taxes and utilities. Before you determine your budget, make sure you’ve taken into consideration these additional expenses associated with home ownership.

Obtain a Pre-Approved Mortgage

The real estate market is always changing and it helps to understand how market conditions can affect your position as a buyer. As your trusted Realtor, I will help provide you with current real estate marketing conditions and explain their impact on your potential purchase.

Here are some helpful conditions to better understand the real estate market.

Market Conditions Characteristics Implications
Buyer’s Market:
The supply of homes on the market exceeds demand
High inventory of homes. Few buyers compared to availability. Homes on the market longer. Prices tend to drop. Demand equals supply. Sellers accept reasonable offers. Homes sell within an acceptable time period. Prices generally stable.
Seller’s Market:
The number of buyers wanting homes exceeds the supply or number of homes on the market.
Smaller inventory of homes. Many buyers. Homes sell quickly. Prices usually increase. May have to pay more. Make decisions quickly. Conditional offers may be rejected.
Balanced Market:
The number of homes on the market is equal to the demand or number or buyers.
Demand equals supply. Sellers accept reasonable offers. Homes sell within an acceptable time period. Prices generally stable. More relaxed atmosphere. Reasonable number of homes to choose from.

Understand Market Conditions

I strongly recommend having a pre-approved mortgage before you start looking for a home. This will give you the confidence of knowing exactly what you can spend on a home and will also be protected against interest rate increases while you look for your new home.

Your Mortgage Specialist will answer your questions and help you determine which financing terms and options are right for you. I can work with your Mortgage Specialist to help you find the best financing to get you the home of your dreams.

Finalize Your Mortgage

Once you’ve found the home you want to purchase, there are some documents you’ll be asked for in order to finalize your financing. These will include:

  • Valid id
  • Confirmation of income or employment earnings.
  • Banking information.
  • Evidence of down payment.
  • A list of your assets and liabilities.
  • Contact information for your lawyer.
  • Your purchase agreement.
  • A copy of the MLS listing
  • Letter from your insurance company for coverage of your new property.

I will be there every step of the way to help guide you and make sure this process goes as smoothly as possible.