Tehama Country Real Estate

6 – Tehama Country Real Estate BUYING A HOME MEANS FINANCIAL READINESS A s any homeowner or prospective homeowner likely knows, the current real estate mar- ket is what s commonly referred to as a buyers market. For sellers, that s not a particularly comforting notion. However, for those looking to buy a home now or in the near future, the current market is enticing. For first-time buyers new to the housing mar- ket, getting finances in order should be the first step to take, even before the initial home search begins. " Find your price range. Deciding on a price range is the first step any prospective buyer should take, whether they’ve owned a home in the past or are abandoning apartment life once and for all. For those who are hoping to become owners and not renters for the first time, it s important to note that a mortgage payment isn t exactly the same as a monthly rent payment. Owners have different financial responsi- bilities than renters, such as home- owner s insurance, property tax and utilities. Therefore, a home that provides a mortgage payment roughly equivalent to your current rent doesn t necessarily mean you can afford the home. Instead, determining your price range involves taking into account all the monthly fees that will come with home ownership, and leaving some money available for unforeseen home repairs as well. " Open a new account solely for home savings. A new savings account into which you regularly deposit money solely for home savings should be opened once you ve determined you re in the market for a new home. If you already have an existing savings account from which you withdraw money for other expenses, transfer any existing home savings money into the new account. This will ensure you re not using home savings money for extraneous items that ha v e the recent housing crisis and eco- nomic downturn might make it harder to find such lenders, they might still exist, and it doesn t cost anything other than time to investi- gate. While it s still ideal to place a down payment of 20 percent, it shouldn t discourage buyers who have slightly less than 20 percent from buying a home they really like. " Visit a lender to get pre- approved. Few things can be more discouraging than finding a home you really like, only to be turned down by lenders who deter- mine you can t afford it. By visit- ing lenders before- hand and getting pre-approved for a mortgage, you ll know exactly how much you can bor- row, putting sellers more at ease when dealing with you as a prospective buyer. noth- ing to do with your goal of pur- chasing a home. Set specific goals for deposit amounts into this account, and do your best to meet those goals. " Cut back on expenses. Buying a home is a big expense, one that comes with fees you might not have foreseen, such as closing costs, realtor fees, etc. Therefore, when you ve decided you want to buy a home, you must also decide to cut back on any unnecessary expenses. This includes dining out, buying new furniture or appli- ances, and other big-ticket items that aren t essential. " Examine down payment alterna- tives. While it s standard to provide a down payment of at least 20 per- cent on a home, some lenders might offer flexibility with respect to initial down payment. Though How much you re approved for is deter- mined by your income, total debt you re carrying and your credit history. If you have lots of outstanding debt, pay it off before visiting any lenders. Couples should discuss each other s finan- cial situation before visiting any lenders to avoid any unpleasant surprises when the application process begins. the home ownership debt on a con- venient monthly plan set forth by the courts. Bankruptcy can be an emergency escape before your property is sub- ject to a Notice of Default, so be sure you have hired a qualified attorney that specializes in bank- ruptcy. When your home is subject to deadlines and filing dates, only a seasoned bankruptcy lawyer can be trusted to get the paperwork sub- mitted on time.

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