Buying a home is a significant and exciting decision. This section provides professional real estate advice and helpful home buying tips.
The Internet and real estate professionals are the top two resources most buyers turn to when searching for a home.1 When it’s not convenient for you to speak directly with a real estate professional, century21.com can help improve your overall home buying experience and provide the guidance to reduce stress, save time, and make you a savvy, successful consumer.
A CENTURY 21® Agent is ready to make a full-time commitment to help you capitalize on current market opportunities and assist you in making an informed decision.
To ensure you make the right choice for the long term, a CENTURY 21 Agent offers extensive knowledge in:
- Neighborhoods, schools and market conditions
- Mortgage specialists who can assist you with your financing
- Technology that gives them an edge, along with multiple resources available just for you on century21.com
Would you like to receive more information on the home buying process? Contact one of our CENTURY 21 Agents.
1 2010 National Association of REALTORS® Profile of Home Buyers and Sellers
Finding the right real estate agent can make you a savvy consumer and improve your overall experience.
Once you negotiate and settle on a price, the buyer arranges for financing and a home inspection.
Successful real estate negotiation is more than a matter of luck, innate talent or charm.
Seller or owner financing is a technique in which the seller of a home takes on the role of a lender in a home sale.
A home inspection is a professional, objective visual examination of the physical structure and systems of a house, from the roof to the foundation.
How much home can you afford? Review your income, savings, and debt to figure out how much home you can afford.
Now that you know what you're looking for, the next step is figuring out what type of home you can afford. A review of your income, savings, monthly expenses and debt will be necessary.
Early in the process, you'll want to get pre-qualified for a mortgage loan. It enables you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and can afford to buy the property. A pre-approval is a simple calculation done by a mortgage lender that tells you the amount you'll be able to finance through a loan and what your monthly payment will be.
The price you can afford to pay for a home will depend on several factors, such as:
- Gross income
- The funds you have available for the down payment, closing costs and cash reserves required by the lender
- Your debt
- Your credit history
- The type of mortgage you select
- Current interest rates
Another figure that lenders use to evaluate how much you can afford is the housing expense-to-income ratio. It is determined by calculating your projected monthly housing expense, which consists of the principal and interest payment, property tax payments and insurance premiums on your new home loan (also known as PITI).
Each buyer is unique, and a mortgage professional can help you find out just what you can afford. Your income and debts will typically play the biggest roles in determining your price range.
Making an offer to purchase a home has its own set of factors. Rely on a CENTURY 21® Agent’s experience and knowledge to make a successful home buying offer.
Once you’ve found your ideal house, it’s time to get started with the financial and contractual side of the purchase. Let your CENTURY 21® professional guide you through this process. Purchase contracts vary in length and terms from state to state, and sometimes within a state.
Multiple offers on the same home are not uncommon, so you may only get one chance to make an offer that the seller will consider. That's why it's important to think carefully about your strategy. In most cases it is better to have your real estate professional present the offer. If you have any personal interaction with the homeowner, avoid sharing any information about your move, your current housing status, financial status or your feelings about their property - positive or negative. This could work against you in future negotiations.
TIP: You and the seller have different goals, so it’s important to consult with your CENTURY 21® Agent. He or she can bring order to the process, and will know what questions to ask to help you reach a desirable outcome.
Once you’ve made the decision to become a homeowner and picked the house, you may need to apply for a loan. This process might seem daunting, but your lender will guide you through it. The process will be even easier if you know what to expect and prepare for it.
Here are the high-level loan application steps:
- Prepare required documents:
- Two years of employment history, current employment status and salary are needed. Employment letters can be used to explain gaps in employment.
- Two years of W-2s (this does not apply if self-employed) and tax returns allow the lender to be sure that your salary is high enough to make the mortgage payments every month.
- Most recent pay stubs for the last 30 days tell the lender that you’re still earning money similar to the amount on your tax returns. (This does not apply if self-employed, but the lender will likely require a profit and loss statement.)
- List of assets, including bank statements, let the lender know that you have the money to cover the down payment, closing costs and a reasonable emergency.
- Submit the application. Once you’ve prepared the required documents, the first step with the lender is to apply for the home loan. Of course, you will need to provide personal information, as well as information about the property you’ll be purchasing, such as the address and estimated purchase price.
- Provide your documents. Submit your documents, such as pay stubs, W-2s, bank statements and employment history.
- Get pre-approved in as little as 24 hours. Once your loan application is submitted, you should receive your pre-qualification in as little as 24 hours.
- If you are planning to buy a home with cash, this section provides some useful information to make your transaction a success.
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Though most buyers don't buy a home with all cash, anyone considering such a move may be wondering how it’s done. Because all cash buyers sidestep the time-consuming loan qualification process, the deal can close very quickly. The primary advantage of buying a home with cash is completely avoiding mortgage interest. Buyers also save money that would be spent on loan origination fees, required appraisal, some closing costs and various other charges imposed by the lender.
TIP: Take a look at other investments that are doing well, and determine if spending cash on a home is your best investment option.
