Setting a Time Frame
There are a lot of variables in the home-buying process, which means the time it takes to find and buy your new home varies too. A typical home search process may take three to four months consisting of: the mortgage approval process, comparing and evaluating properties, making an offer and the closing process. The loan process typically takes 30-45 days.
There are a lot of variables in the home-buying process, which means the time it takes to find and buy your new home varies too. A typical home search process may take three to four months consisting of: the mortgage approval process, comparing and evaluating properties, making an offer and the closing process. The loan process typically takes 30-45 days.
The Lending ProcessPerhaps one of the
most intimidating aspects of buying a home is the mortgage approval process.
I'll be there to help guide you through this, but there are many ways you can
prepare early to make the process smoother. Start by making sure your budget is
under control. Make a list of all your monthly expenses, compare it with your
income, and see if adjustments need to be made. You should also try to pay off
small credit card balances. Start gathering documents you may need, such as W-2
forms, income tax returns for the past few years, pay stubs, records of child
support or alimony, bank statements for the past several months, and your credit
report. Also, be sure to allow for closing costs. Getting several offers will
allow you to compare loans and get the best deal.
Determining How Much You Can Afford
A general guideline to consider is that most buyers purchase a home that costs about one and a half to two and half times their current annual income. For example, a couple earning $100,000 a year might purchase a home for $175,000 to $250,000. Mortgage payments should be about 26-28 percent of your gross monthly income. Existing debt is also considered in the mortgage process, and total debt payments (car payments, credit cards, student loans, etc.) should not exceed 40 percent of your gross monthly income.
A general guideline to consider is that most buyers purchase a home that costs about one and a half to two and half times their current annual income. For example, a couple earning $100,000 a year might purchase a home for $175,000 to $250,000. Mortgage payments should be about 26-28 percent of your gross monthly income. Existing debt is also considered in the mortgage process, and total debt payments (car payments, credit cards, student loans, etc.) should not exceed 40 percent of your gross monthly income.
Finding a Home That Meets Your Needs and
WantsBefore you start looking at properties, make a list of
"must-have" features along with optional features you'd like to have.
"Must-have" features may include the number of bedrooms and bathrooms you'll
need to accommodate your family, location (consider commute to work, which
schools your children will attend, etc.), lot size and special needs
(handicapped access, etc.). Optional features may include the architectural
styling, bay windows, landscaping, etc. Having a clear idea of what you want in
a home will help your REALTOR® find the perfect property for you.
Educating yourself about the home-buying process is the key
to getting a home you love and can afford. As your REALTOR®, Jeri Patrick is here to answer any questions you might have and guide you through
this process.
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