Finding The One

You've decided it's time to buy a new home. You can already imagine

the new kitchen shining, the birds chirping outside, and the smell of

fresh cut grass. But wait... How do you find this home? Almost 9/10

home buyers start their search online. Can it be that easy? What do I

need to look for? Should I use a Realtor? These are all great questions

and ones you should be asking yourself.

First, we will start with the basics. Should you use a Realtor to assist in buying a home? Multiple current home owners all agree that yes, you should! Not only is a Realtor free to the buyer, unless stated in the contract, we are also trained and knowledgeable in the real estate market for things like CMA reports, Mortgages, Negotiations, guiding you through the extensive paperwork, and much more. Throughout the whole transaction, we are here for you!

The second step to a successful house hunt is knowing what you can afford. If you have the ability to pay cash, DO IT! This will save you from interest rates that can total in the tens if not hundreds of thousands of dollars. When mortgaging, one of the best tools you can use before you get to a lender would be a mortgage calculator. This tool lets you input numbers helping you find what's affordable and what's not. Some mortgage lenders follow the 28/36 rule. Meaning, your household should spend a maximum of 28% your gross monthly income on housing and then, not spending more than 36% monthly income on total debts, including housing, cars, etc. After doing the math of the 28/36 rule, you are able to work backwards on a mortgage calculator finding your maximum purchase price. This information will allow you to narrow your search and move-in quicker.

Now it’s time to talk to a lender. These lenders will assist you through a process known as pre-approval. Pre-approvals will give lenders verification of your income, assets, debts, and most of the time requires a credit check (resulting in a hard inquiry, affecting your credit score). What do pre-approvals help with? Not only do they show how much a lender is willing to give you, they are great when putting in offers because then the seller knows you’re a serious buyer. If you end up in a bidding war against someone else who is not pre-approved, then you will most likely get chosen over them.

Time to search! How many bathrooms? Bedrooms? Acres? Is the kitchen big enough? Country or City? All are good questions. It can be hard to find a place to start. First, price. After establishing your max budget always make sure to subtract cost like moving expenses, closing costs, and renovations, if necessary. Next is deciding how big or small of a home you will need. For a family of two, this is easier. However, if you have or are planning to have kids and expect frequent guests you may need to opt for extra space. Are your kids going to be able to share a room or is it best to keep them separate? What about that office? It could easily be converted into a bedroom. As important as bedrooms are, bathrooms have a huge effect on the functionality of your home as well. Do you, your spouse, and kids need to all leave the house at 7:30 am? Then it may be best to go for the home with 2 baths and a large water heater.

These are just a few of the basic questions that go into finding a fitting home. Every family is different. Just like each property, we all have our unique features. One last tip I would always recommend is leave room to grow. This will help reduce stress in the future and money spent each month at a storage facility. If you are looking to buy using a Realtor, I would be happy to help! Give me a call, text, or email:

P: 618-554-0052

E: austinyagerrealty@gmail.com

Have a great day!

Sources:

Ramsey Solutions. “How to Find Your Perfect Home Online.” Daveramsey.com, Dave Ramsey, 29 Apr. 2019, www.daveramsey.com/blog/3-steps-for-finding-perfect-home-online.

Newsdesk, The. “First-Time Home Buyers Guide: Finding The Perfect House.” Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports, The Mortgage Reports, 2 Oct. 2018, themortgagereports.com/19535/first-time-home-buyers-guide-finding-the-perfect-house-sp16i.

Monroe, Rosa, and Rosa Monroe. “Should I Buy A House Without Realtor?” Bankrate, Bankrate.com, 29 Jan. 2018, www.bankrate.com/real-estate/should-i-buy-house-without-realtor/.