How to Navigate the Homebuying Process

Create a budget and determine what is affordable

• Buyers can generally afford a home that is between two and three times their gross income. They shouldn’t spend more than 30 percent of their monthly income on housing.
• Consider down payments, qualifying for loans and closing costs
• The amount you save for a down payment will depend on your loan type
• If possible, save around 20 percent of the purchase price for a down payment – the higher the down payment, the lower the mortgage’s interest expense, including no PMI
• Remember additional expenses
• Property taxes, insurance, maintenance and utilities
• Regular home maintenance or unexpected repairs
• Taxes, attorney’s fees, credit report, home inspection and transfer fees
• Possible contingencies
• Fees from third parties and services for appraisal, surveys and inspections

Research and prioritize important features

• Create list of needs and wants based on what you can realistically afford. Consider:
• Location, amenities, proximity to work and schools
• Estimated long term/future resale market prices 
• Using SABOR.com to search what is on the market

Get pre-approved by lenders

• Pre-approval shows what you can afford based on budgets and makes offers more attractive to sellers; this also allows you to know how much home you can afford before you start looking
• Check credit reports – make sure all problems are addressed

           Close the deal

• Determine a strong offer amount, but be open to negotiations
• Work with your REALTOR^® to prepare written offers/contracts, manage expectations and handle negotiations
• Understand the contracts 
• A real estate transaction brings many notice, disclosure, contract and application forms – get clarification from your REALTOR^®
• Arrange for financing
• Act fast in tight markets

         Remember to ask questions, work closely with and rely on your REALTOR^®