Many renters want to be homeowners today and how many long-time homeowners that need or want to move have the same question: “How Do I Start?”
In this two-part blog series we cover questions you may be asking, and how to get started in your home purchasing journey!
Moving to a new home has 3 key components: Finances, Logistics, and Negotiations.
A realtor will be your trusted advisor and advocate on your behalf to ensure there are no surprises on the money and logistics side. If you are buying the very first question with noting is what your realtors role is for you.
In summary, your Realtor’s role is two things: 1. Your advocate and negotiator and go-between 2. Your resource to contractors, and business owners.
The first question you may have when thinking about buying a home is “How much will it cost me to have a realtor represent me” – most times very little or even nothing to be represented. When a home is listed, the listing broker wants other agents to show the property and to incentivize this they offer compensation to agencies who have buyers to show their home.
Question 2: “How much Home can I Afford?”
One thing we want buyers to remember when calculating how much home they can afford is not to go by how much home the mortgage company will let you buy, but how much monthly payment you want to live in. You may be able to afford a $300k on paper through the bank, but if you want to stay in a $1500/mo mortgage payment, go with that over how much house you CAN buy.
Key things to remember: work with a local lender who can set you up for a loan type that meets your needs. The Market sets the price, and we live in the payment not the price.
Question 3: “I want to move and buy, but I have a house to sell or I’m locked into a lease. What do I do?”
It’s always prudent to plan for the worst and expect the best. It all depends on “worst-case-scenerio” you’d find most stressful. Would it be buying first and possibly having an overlap of 2 mortgages if the closing dates didn’t line up perfectly? (which, honestly, today is not as likely). OR would it be selling first and not finding your dream home before you close on your current home? If so, do you have relatives or another place to live in the meantime?
As Realtors we do a lot of planning to avoid these kinds of issues, but it is good to think through your worst-case so we can prepare and plan to make the best case a reality.
A KEY component to any home purchase or sale is to make informed decisions. Gather the data, get professional advice and make a decision that you won’t have regrets later on.
In Part 2 we will discuss a few other frequently asked questions from buyers as they prepare to look for their new home.
If we can help you find your new home in 2021? If you’re local to the greater Lynchburg area, give us a call today and let us help you on your home selling and buying journey! Call us at: 434-239-2394