Real Estate Matchmaking - On Both Sides of the Rainbow Tunnel

10 Step Home Buying Guide-Step1: ESTABLISH A BUDGET

10 Step Home Buying Guide-Step1: ESTABLISH A BUDGET

10 Step Home Buying Guide –  1. ESTABLISH A BUDGET Buying property is a HUGE deal! It’s likely the single biggest purchase you will make in your lifetime. The first step is to establish a budget and to do that you have to step back and look at your big picture. What does owning a home mean to you? How do you see yourself and your family living in the home? Is this your 5-year home or your forever home? What other activities and hobbies do you want to also continue or cultivate after you buy your home? These are all really important questions to ask yourself and the answers will help you decide how much or your monthly income you are willing to contribute to a mortgage and household expenses regardless of what a lender eventually approves you for. Expect your PITI (principle, interest, taxes and insurance or total house payment) to be at least 30% of your monthly income or more. Find more details about the actual cost of owning a home from this great SF Gate article. Renting vs. Buying Replacing rent with a mortgage has tax benefits and in the end will save you money and allow you to put that money towards paying your mortgage and building equity instead of someone else’s. Your PITI is a set monthly amount while your rent is subject to annual increases and if your not protected by rent control could spike suddenly and dramatically. Make sure that your PITI (principle, interest, tax & insurance) fits in with the rest of your lifestyle. Once you are comfortable with an...

10 Steps in Buying a Home – Step 3: Obtain Lender Pre-Approval

10 Steps in Buying a Home – STEP 3: Obtain a lender Pre-approval You have met with and committed to your Realtor and you are ready and anxious to move forward and find your perfect home. Before you get in your Realtors car to look at homes you need to talk with a lender and obtain a pre-approval. Why is this so crucial? Knowing your buying power is well, powerful. The online calculators will give you a rough idea of your monthly PITI (principle, interest, taxes, insurance =monthly payment) but your whole financial picture is unique to you. You want to know how much house you can afford and the amount of monthly payments you are comfortable with before falling in love with a house that you wont’ be able to submit an offer. The lender may have an initial phone conversation with you or just give you a checklist of items they need from you. Your experience with the lender will depend on your individual financials and how quickly you return information they request. The key to success with your mortgage broker is to give them whatever they ask for, in the exact form they ask for it, it as soon as you can produce it. Ex: if they ask for a bank statement. Don’t just send them two pages because the 3rd page it blank or just a disclaimer. Send THE ENTIRE STATEMENT! How Do I Find a Good Mortgage Broker? Some buyers have lenders/bankers or brokers they have past experiences with but most first time home buyers do not. Your Realtor will have one or more...

10 Steps in Home Buying – STEP 2: Commit to a Realtor

10 Steps in Home Buying – STEP 2: Commit to a Marin Modern/San Francisco Modern Realtor The home buying process is unique and should be customized to your specific and personal needs and wants. Engaging a Realtor early on will get you started down the right path for your home buying journey. 97% of home buyers today start their search online and spend anywhere from a few weeks to several years researching and planning before contacting a Realtor. This is totally normal but when your ready to move from looking at pretty kitchens and dreaming about your next home to putting together a solid game plan and timeline your ready to engage a Realtor. Every single home buyer has a unique set of circumstances driving their home buying process. There isn’t one perfect way to start your home search but engaging a Realtor early on in the process will save you a lot of time, frustration and guesswork. HOW DO I KNOW WHEN A REALTOR IS THE RIGHT ONE TO HELP ME WITH THE HOME BUYING PROCESS? There is no single perfect Realtor. There are literally 100’s of excellent Realtors that work in Marin and San Francisco. The key to finding the perfect Realtor for you is finding someone you trust and like. When considering a Realtor to work with and help you find your next home google them, read reviews, bios, check out past sales, read their blog, etc to get a better idea of who they are and how they work. If what they have to say resonates with you and it’s supported by excellent client reviews...