-
What questions should I ask my real estate agent?
Why did you become a real estate agent? Why should I work with you? What do you do better than other real estate agents? What process will you use to help me find the right home for my particular wants and needs? What are the most common things that go wrong in a transaction and how would you handle them? What are some mistakes that you think people make when buying their first home? What other professionals do you suggest we work with and what are their credentials? Can you provide me with references or testimonials from past clients?
-
How much house can you afford?
Your lender decides what you can borrow but you decide what you can afford. Lenders are careful, but they make qualification decisions based on averages and formulas. They won’t understand the nuances of your lifestyle and spending patterns quite as well as you do. So, leave a little room for the unexpected – for all the new opportunities your home will give you to spend money, from furnishings, to landscaping, to repairs. Historically, banks use a ratio called 28/36 to decide how much borrowers could borrow. An approved housing payment couldn’t be more than 28 percent of the buyer’s gross monthly income, and his or her total debt load, including car payments, student loans, and credit card payments, couldn’t be more than 36 percent. (In Canada lenders apply similar formulas to determine how much a buyer can afford. The Gross Debt Service ratio, or GDS, is not to exceed 32 percent of the buyer’s gross monthly income, and the Total Debt Service ratio, or TDS, is not to exceed 40 percent of the buyer’s total debt load.) As home prices have risen, some lenders have responded by stretching these ratios to as high as 50 percent. No matter how expensive your market though, we urge you to think carefully before stretching your budget quite so much. Deciding how much you can afford should involve some careful attention to how your financial profile will change in the upcoming years. In the long run, your own peace of mind and security will matter most.
-
How do I secure financing?
While you may find the thought of home ownership thrilling, the thought of taking on a mortgage may be downright chilling. Many first-time buyers start out confused about the process or nervous about making such a large financial commitment.
-
Is it easy to find a home?
You may think that shopping for homes starts with jumping in the car and driving all over town. And it’s true that hopping in the car to go look is probably the most exciting part of the home-buying process. However, driving around is fun for only so long-if weeks go by without finding what you’re looking for, the fun can fade pretty fast. That’s why we say that looking for your home begins with carefully assessing your values, wants, and needs, both for the short and long terms.
-
What type of loan should I be applying for?
There are several options. In most cases land loans are set up with an adjustable rate and require 20% of the purchase price down or in some form of collateral.
-
Do I need a pre-approval?
Yes, in most every case we find that a pre approved buyer is in better shape to get the best deal out there.
-
Do you have lenders that you work with?
Yes, we have several lenders we can recommend and then you can choose based on your personal criteria.
-
Will a VA loan work for just land?
In most cases no, VA requires a home and “x” amount of acreage.
-
Can Land be split and purchased?
It depends on the seller whether or not they will divide.
-
Should I get a survey?
We believe everyone that is purchasing land should consider it. Just the same as we do when buying a home, having a home inspection is a must!
-
Are taxes based on the purchase price?
No, taxes are based on the assessed value in that particular county.
-
Am I responsible for taxes?
Taxes are generally pro-rated to the date of closing.