Since we are in a competitive Orange County Real Estate Market, and there are more buyers out there searching for homes than ever before, it’s important for every buyer to be ready to enter the Real Estate market so they can find the home that’s right for them, especially if they follow these simple tips.
Be Ready To Buy
The first step to buying a home in the 2013 Real Estate market is to be ready for home ownership. If you as a buyer can’t commit to the responsibilities of home ownership like: staying in the same area for more than just a few years, you may risk the chance of losing money or paying more money in taxes if you sell your home too soon. With Prop 13, you are protected against huge tax gains on your current residence. If you are constantly house hopping, you lose that tax protection and may pay more if your new home is worth more
Get Credit Ready
Having good credit is still an important part of buying a home. Having good credit means that you stand the chance of being approved for a mortgage loan with a lower interest rate and spending tens or hundreds of thousands of dollars less during the lifetime of their mortgage loan.
To verify if you have good credit, you as a homebuyer should pull your 3-in-one credit report at least 90 days before you plan on getting pre-approved for a mortgage loan so you can dispute any inaccurate items on your credit reports and resolve any items from your past that may have never been paid off or been misreported.
Follow a Budget
Every homebuyer should learn from the experiences of homeowners of recent years who saw their mortgages go underwater. Make sure that you only buy a home that they can afford because things like: job loss, accident, injury or death of the primary income earner, it’s very easy for any homeowner or family to get behind and lose their home, even during a booming economy. As most financial advisors advise, keep at least 3-6 months in an emergency fund in case of one of these incidents so you have a buffer while you figure things out.
Aim For 20% Down
Last of all, but one of the most important, you should always set your goal to put 20% or more down when buying a home. This means that you will have a smaller mortgage payment and be able to pay off their home quicker over time.
If a home buyer can’t put down 20% on a home they may still be able to buy a home without putting down 20% thanks to other loan programs out there like VA, FHA and HUD.
To learn more about how to get prepared for buying a home, or to view the latest Orange County homes for sale, contact Fred Sed & Associates today by calling us at (949) 272-0125.