May 12th, 2010
The “Keys” to Homeownership
(ARA) – “It’s a buyer’s market” is a popular headline right now. It’s one that’s hard to ignore, especially if you’re a young adult or even a long-time renter who has been waiting for the right time to pursue the American dream of owning your own home in Central Virginia.
Buying your first home can be scary, but as with anything else in life, the right preparation should bring you good results – a great Richmond area home you want and one you can afford.
Whether you are ready to buy a Richmond area home in the next few months or next few years, preparation is critical. The following are important “keys” to homeownership.
- Obtain a credit report. Review your credit report prior to starting the home buying process. This will enable you to dispute any incorrect entries and satisfy any derogatory items on your report. You are entitled to one free copy of your credit report every 12 months. Ensuring your credit report is accurate is critical as it is an important element lenders review to determine your credit worthiness for a loan approval.
- Establish a budget. Knowing where you spend your money and how much you are able to set aside each month can, first, help you decide if purchasing a house is a viable choice now or of it is something that will have to wait until later. Establishing a monthly budget also helps determine how much house you can afford, which will help you zero in on possible homes to look at. If buying the home you want is not in the cards now, use the opportunity to take a closer look at your spending and savings habits and develop a plan to begin setting money aside for a down payment and monthly mortgage payments.
- Secure a down payment. There are very few loan programs that will allow you to purchase a home with no money down, so making a down payment is almost always a good idea. The most common sources of a down payment are your savings or a gift of cash. The amount you put down has a direct impact on what your monthly mortgage payment will be and will also determine if you will be required to purchase PMI, or private mortgage insurance.
- Understand mortgage options. There are many types of loans available to suit your needs. The following is a list of some of the more common types of loans. At Skye Bruce Properties we have a team of Mortgage experts to explain the process to you in simple terms!
- Get pre-approved. Now that you have done your homework and are ready to purchase a home, you should meet with a lender. At Skye Bruce Properties we have mortgage lenders who can meet with you at our office or your home to get you qualified. A pre-approval allows the lender to review your situation and make recommendations prior to entering any formal purchase contract. The pre-approval will establish for you a limit on the dollar amount the lender will commit to your home purchase. Having a pre-approval letter will also put you in a stronger negotiation position when buying a home!
These preparations are just the beginning of your journey to homeownership. Of course to start you will want to choose a REALTOR to guide you through the process og homeownership. Skye Bruce Properties has a team of Buyer’s Agents you are experts in the home buying process in the Richmond area. They will help you find available listings which meet your criteria, assist you in making an offer and negotiation a contract, getting a home inspection completed and even help you find a mover.
Buying a home is one of the biggest decisions that you will ever make. In your pursuit of the American dream, make sure you follow the keys to success and enjoy this exciting journey. Don’t go it alone! Contact Skye Bruce Properties today!
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