Buying a home is one of the biggest financial commitment you will ever make! Buying a home is not just a dollars and cents investment; it's an investment in your life. It will create a sense of stability and identity for you and your family. Regardless of how times change, owning a home remains the cornerstone of the American dream.

 The first step is to select a professional who can help make your dream home become a real home by finding homes in the area & price range you prefer, showing only the type(s) of homes you prefer, providing a market report detailing area home sales, negotiate your best price and terms, and answering any questions you have regarding financing, title, surveys, inspections, warranties, title and homeowners insurance, closing attorneys and so on. Working with a buyer agent is worth consideration since he or she is legally responsible for representing the buyer's interest in a real estate transaction. Before making a decision, however, have a Realtor explain the pros and cons of using a buyer agent versus a listing agent or dual agent. Lynn and I can guide you through every step to buying a home.

Talk to a mortgage broker or loan officer at your favorite bank. He or she will help you figure out how much “home” you can afford to buy. Shop around for a lender that you feel comfortable with and that can get you the best deal. Be wary of hidden costs and restrictions! Often, if it sounds too good to be true – it is! Don’t apply to more than three! Too many credit inquiries can actually harm your credit score.  Make sure to get a pre-qualification letter from your chosen lender. If you like, Lynn or I can provide you a list of lenders that have a proven track record for providing excellent customer service at very competative interest rates. If you like to get pre-approved now, you can apply online at Century 21 Mortgage.

You will need to have some cash available for expenses entailed in buying a home.  Here's a basic guideline of the amounts that you may want to have on hand – keeping in mind that Lynn or I may be able to negotiate some, if not all, of your costs into the contract price. If you have 20% to pay down, you can avoid paying Private Mortage Insurance (PMI) and you should be able to get a lower interest rate! If that isn’t possible, speak with your lender about options for zero-down loans or getting a “second” mortgage to cover the down payment. On average, your closing costs will be approximately 3% of your mortgage (loan) amount. Closing costs include lender & attorney fees, pro-rated property taxes, title search, title insurance (always buy title insurance for yourself), recording fees, etc. Your lender must give you a “Good Faith Estimate” of the closing costs within three days after applying for a loan. This will give you a good idea of the amount of money you may need to bring to closing. You may also need cash for a home inspection, termite inspection, and an appraisal. These fees normally range from $300 to $700. You will also need $500 to $2,000 for an “earnest money deposit. The earnest money will accompany your offer to buy a home. It tells the seller that you are sincere (earnest). This money is held in an escrow account and is refundable to you if your offer is not accepted or if the contract should fail to close through no fault of your own. At closing, this money is normally applied to your closing costs.