Are you ready to buy your first home? Here are some important aspects of home buying to consider and help you decide if you're ready to buy.
-Are you familiar with the market? If you pay attention to listing prices in the neighborhood and have a realistic view of how much a home will cost you, you're off to a good start. You have to be realistic and understand that (depending on your budget) you're most likely not going to get everything on your wish list.Â
-Do you know what your home buying budget is? Your monthly mortgage payment should be less than or equal to a percentage of your income. Your income, debt, and credit score are all taken into account as to how much you can borrow for your down payment.
-Do you have the money for a down payment and closing costs? The down payment is the percentage of the value of the property. This percentage is determined by the type of mortgage you select. Closing costs include points, taxes, title insurance, financing costs, and prepaid items or settlement costs.Â
-Is your credit report accurate and at a good number? Lenders will view your credit history to determine whether they'll give you a loan. You should get credit reports from at least three credit report companies. Some reputable ones include Experian, Equifax, and Trans Union.Â
-Do you know that there are addition expenses to your down payment when it comes to buying a home? Expenses include homeowners insurance, utility bills, maintenance costs (heating and cooling, roofing, and plumbing).
-Have you made any recent big purchases? If you recently bought a car for example, you may have a harder time finding a lender to give you a loan or it could potentially lower the amount you get approved for.
So how did you do? If you feel you are ready to buy a home and Palos Verdes is the place you want to live then we cannot wait to help you find that perfect place for you to call home!Â