BUYING A HOME

Buying a home does not need to be a difficult process. In fact, Eric divides the whole process into three simple steps…

PRE-APPROVAL

Consider Obtaining a Mortgage Commitment too…

Since mortgage rates are still at all time lows, the housing market IN PHILADELPHIA continues to be reasonably strong (even with the current economic crisis). This means that the process can still become very competitive. A smart buyer is a prepared buyer! Having a mortgage pre-approval puts you in a much stronger bargaining position. It proves to the prospective seller that you are stepping into negotiations with almost guaranteed funds.

But even more important than impressing sellers, getting pre-approved by a reputable mortgage company will ensure that you are aware of not only how much you can afford, but how much you are comfortable with paying.
It’s important to know how lenders determine what kind of mortgage payment a family can afford. Click here for Eric’s mortgage calculator, and keep these basic rules in mind:

    • 28% of gross monthly income for principal & interest
    • 36% of gross monthly income for total mortgage payment

REMEMBER: There are different programs for various situations. When buying a house having a creative mortgage broker is key! Click here to learn more about mortgages. Nowadays as long as you have very good credit and can document your income, a reputable mortgage company should be able to take you through the process hitchless.

FIND A DEDICATED AGENT

For starters, agents are informed of new listings on a daily basis. In addition, if you have a dedicated agent he/she should work tirelessly to locate the property that matches your specifications. They will then, through extensive comparable market research and general market/ timing research assist you with the determination of an offer price to ensure that you, the buyer, are in line with the market and ultimately not paying too much. Next, a thorough agent will walk you through the full sales agreement and explain all aspects of the transaction.

Finally, a dedicated agent will help make sure that all clauses of the agreement are followed. It is the agent’s goal to have the transaction flow smoothly from home inspection to the closing table. Some of the keywords the dedicated agent will discuss with the buyer include:

  • Contingencies,
  • Deposits
  • Home Inspections
  • Mortgage Commitment
  • Zoning
  • Title Search
  • Title Report
  • Homeowners Insurance
  • Deed
  • and finally Settlement!

RELAX AND ENJOY!

Eric strongly suggests that you spend some time learning about the market and let your agent absorb your stress! Sure buying a house can be extremely stressful. Unfortunately there are several things that can go wrong during the course of the transaction. But, as long as you are working with someone who has transactional experience, a financial mind, and a passion to surpass all expectations, you have nothing to worry about.

Soon enough settlement will be here and you’ll be able to tell your friends with confidence that you have purchased your home at a fair price. There’s no better feeling!

MORTGAGE CALCULATOR

HOW MUCH CAN I AFFORD?

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