Dawna is a real pro! I am so glad she was on our team. For nearly four years she guided us through the volatility of the San Luis Obispo housing market, answering our questions from a far (we live in Montana) and flagging appropriate properties or developments along the way. When the timing was right and we found just what we were looking for, Dawna expertly guided us through the negotiations and inspections. This wasn't our first home buying experience, but we really appreciated how easy Dawna and her assistant made the whole process. We successfully closed in less than 30 days.
- Get prequalified for a loan.This is for two reasons. (1). You will get your finances in order and records current. (2). You’ll learn what you can spend. It is critical that this is done before house hunting. Buyers have a risk of being turned down for a loan, especially in non-salaried or self-employed situations.
- Confirm source of downpayment, and make sure you have ready access to it. You may need 20% or more of the price of the property, depending on the property type, loan, and your circumstances. You will also need to budget about 2% of the price of the property as a reserve for closing costs. If you plan to make improvements to the property like painting, landscaping, carpeting or flooring, have an additional 2-10% or more of the price of the property available. Ready access to the funds means you can personally control the release of the money to escrow, to the sellers, etc. If your downpayment source is a gift, discuss the method of the gift with your lender to determine how long you should hold it in your account and/or how you will need to document the gift.
- Determine the price you are willing to pay for a property, both at time of purchase, and for monthly expenses including taxes and insurance. While this may seem obvious, with financially prudent buyers, the amount you are willing to part with every month is often less than you can actually qualify for with a lender.
- Determine if you need to have additional income from the property to afford the ownership. Do you need tenants for all or part of the property? Income from a roommate to assist financially?
- Watch the property market inventory. This can be a disappointing experience in a tight market and an overwhelming experience in a slow market. We have seen both. Focus your search, stay grounded, get specific on your needs. Your REALTOR® can target the search and screen the listing inventory for you.