TIPS ON HOW TO BUY
A HOME
 Most
people who want to buy a home seek out a Real Estate Professional to guide
them through the process. Lydia has detailed
knowledge of the Marin market, the experience to search out properties to
match her clients' interests, and skill in helping to find the way to make
the process of buying successfully affordable. It is important
to reduce the stress involved in making a large financial purchase and to
maximize the chances of making a solid deal that will be to your benefit.
Lydia knows what is on the market by being connected with it daily. Our
technology is tops, we are connected 24/7, and ready to go to work for
you!
LYDIA WILL:
- Promise to meet or exceed all of your expectations in your
purchase of property
- Search thoroughly for properties to match
your specific needs
- Show you homes in any neighborhood of your choice
- Show you how to qualify for a home
loan
- Discuss the various ways of financing your purchase
- Help you find the best financial person and
the lowest interest rate for your loan
- Present your offer on a home and actively negotiate for your
purchase
- Write and fully explain purchase documents
before you sign anything
- Arrange a favorable contract in which you are legally
protected
- Walk through the home with you prior to
escrow closing and answer all your questions
- Attend escrow closing meeting with you
- Exclusively represent you in the
negotiations
- Keep you fully informed along the way and keep in touch after the
sale is closed
BUYING:
Frequently Asked Questions
Please Click on the questions you want answered.
How much can I afford?
When planning on buying a home, each person's situation is different
and a good financial plan requires a careful review of your balance sheet.
Some of the important variables to consider are listed below:
Is this a first time in buying a home or do you have equity in an
existing home?
Are you moving up to a larger home or seeking to improve your location
or do you want a smaller place and to take equity out of your existing
home?
The main question to be answered is if you need a mortgage loan, how
much can you afford in a monthly payments?
A quick method of estimating the size of a loan payment: take your
gross monthly income (before any deductions or taxes are taken out) and
multiply this figure by 0.28. Most mortgage lenders use ratios to guide
them in their estimate. Lender A uses a 28/36 ratio with the first figure
representing the percentage of your gross income the they would accept as
the maximum monthly mortgage payment you qualify for at this time. Thus a
person with $5000. gross income would qualify for a payment of $1,400. The
second number in the ratio includes your gross monthly income and
subtracts all your debt payments. Lender A has a 36% figure and would
calculate your mortgage payment amount as $5000. x 36% = $1800 and then
would subtract your monthly debts, e.g., an auto lease payment of $500
leaving you with a $1,300 payment for your mortgage. The figures are
fairly close to one another but the more debt payments you have to make
each month, the less you will have left over for a mortgage payment.
Lender B uses a 25/33 ratio and is more conservative in qualifying an
applicant for a loan.
Lenders will want to look at all streams of income and assets you have
as well as your debts. Your detailed credit report is reviewed. Therefore,
it is important that you know what is on your report and to correct any
errors. The better your credit standing, the better terms you will have in
qualifying for a loan. A very skilled mortgage Broker will be able to help
you with finding an instrument that fits your financial situation. Right
now interest rates are decreasing and terms are favorable for mortgages.
There are many types of loans to consider and you will need expert advice
to select what is right for you. Both your Real Estate professional and
your Banker or Mortgage Broker will be able to help guide you in this
process.
A letter that Pre-approves you for a specified loan amount is
essential to make an offer on a house in today's market. This is the
Lender's statement that shows how much they will loan to you to purchase
property. With this in hand you can go ahead and be considered a serious
prospect qualified to bid on a property up to this amount.
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Does the Realtor
represent you?
I believe that it is important that the Buyer is represented exclusively
by their Real Estate professional. This positions you as the main focus of
the transaction. Your agenda is the significant one. Be clear with your
Realtor that they are working for you to achieve your purchase at the best
possible terms.
Remember that your Realtor provides a free service when
representing a Buyer. The Seller of the property pays the commission and
they are represented by a separate agent to look after their interests.
The Buyers' Realtor must have the skills to:
- Access all the properties for sale in your area of choice
- Set up appointments for you to visit homes
- Discuss the pros and cons about a property with you
- Guide you in financing and work with your mortgage
broker/banker
- Prepare all the paperwork and present your offer on the home you
choose
- Put you in a favorable contract when closing your offer on a
home
- See you through the close of Escrow and remain available to provide
help and advice even after you move into your new home
Refer to the section that poses questions that one should consider when
selecting a Real Estate professional to represent them. This will give you
some more information to make a good choice in Realtor when you are a
Buyer.
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Which mortgage is right for me?
There are many types of mortgage instruments on the market today and
they are often confusing to people who are trying to finance the purchase
of a home.
- Is it in your best interest to make a conventional home loan that
spans over the period of 30 years at a fixed rate of interest
amortized over this time?
- Is a shorter term Adjustable Rate Mortgage of five or seven years
going to be cheaper for the time you plan on living in this
home?
- What about a second mortgage or Home Equity line of credit? Can
these be used to get me into a property and meet my financial
goals?
These questions are best answered by a professional Mortgage Broker
with experience in helping home Buyers with structuring their finances to
meet specific goals. In each case there will be special considerations and
it is better to consult knowledgeable people who are licensed Mortgage Brokers and associated with many resources for loans rather than specific products their company advocates. Compare rates and the fine print of the available mortgages. Money is tight and in this time of flux lenders are very picky and may decline a loan. Some people got into sub-prime situations with major financial problems due to bad advice from mortgage companies that wanted business. You need a professional who will diligently protect you from high risk situations and unsound mortgages.
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What does the Buyer pay for?
At the close of Escrow the Buyer is expected to pay for the
following:
- Title Insurance premiums
- Escrow Fees
- Document preparation
- Notary Fees
- Recording charges for all documents in the Buyer's names
- Tax pro-ratio (from the date of acquisition)
- Homeowner's transfer fee
- All new loan charges for all documents in the Buyer's names
- Interest on the new loan from the date of funding to 30 days prior
to the first payment date
- Assumption/Change of Records fees for takeover of existing loan (if
applicable)
- Inspection Fees (property, termite, roof, soil, etc. as
needed)
- Fire/Hazard Insurance Premium
The Buyer does not pay for any sales commission to the Realtor.
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For more information, Call 415-785-7750 or
Fill out our Find Your Ultimate Home Form
and ask Lydia to go to work for you.
She delivers comprehensive client service with outstanding results
in Marin, Sonoma, and San Francisco Bay Area Real Estate.
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