So, you have decided to buy your dream home in Folsom. A home search traditionally begins with assessing your financial affordability of owning a house. Whether you’re a first-time homebuyer or looking for a new house due to personal reasons, searching for your dream home in Folsom or any other area, requires you to consult your head, heart, and the rest of your household. Buying your dream home is undeniably a hectic process and to navigate the twists and turns that come with it, we’ll discuss four crucial tips for buying your dream home in Folsom.
1. Defining the Dream: The Assessment Process
The assessment process is the first reality checkup of where you are headed in terms of buying your dream home in Folsom. Here are the following things you need to consider:
Is it time for you to buy the house?
The answer to this question is that it depends entirely on you. Don’t constantly torture yourself trying to predict future trends. The right time to enter the housing market is when you decide to buy a home and you estimate that you can afford the cost.
How much house can you afford?
The best tip would be to consider your borrowing power rather than your purchasing power. Typically, buyers take out a mortgage loan to buy a home these days, and it’s your borrowing ability that defines your buying ability. Consider what size mortgage loan a financial institution is willing to grant you.
What do you want in your home?
To understand what exactly you need in your home, sit down with your family and explore what home means to each person and where you want it to be located. For most people, the type of setting we live in is as important as the type of house.
2. Starting the hunt: The Search Process
Hire a broker.
To start the search process, it is best to first consult a professional broker. However, quite to your surprise, most brokers work for the seller’s interests! Thus, consider using a buyer broker, and while choosing a real estate agent, check their references, track record, what they are willing to do for you, and what compensation they expect. Remember to play fair with agents by providing them with honest information about the houses you have seen and with whom. Don’t try to sideline an agent’s commissions by directly dealing with the seller, as the agent might be entitled to sue for damages.
Visiting the dream house
On your first visit to new homes for sale in Folsom, CA, ensure your house meets your basic needs in terms of size, price, and location. It’s best to get as much information as you can about the house. Also, if, on your first walk-through, you find a serious flaw, it’s best to call a structural engineer or a professional inspector and get a repair estimate. Adjust your bid accordingly, or look for another house if you need to.
3. Getting the loan: The Finance Process
Determining the best kind of mortgage for you
The best mortgage for you chiefly depends on how long you plan to remain in the home and what size of payment you can afford. Choose the right lender by using the annual percentage rate (APR) to compare loan offerings. Also, it’s advisable to get a pre-approval for your loan before house hunting that tells you and the seller the approximate amount that you could borrow.
Applying for a loan
After finding your desired mortgage, make a date with the lender and ask in advance about the required documentation. Prepare a good explanation for your credit problems, and if your credit history has been very bad, then continue waiting for a year until you have a record of monthly payments.
4. Securing the best deal: The Buying Process
Assemble the best team of professionals.
The best tip to make the whole buying process easier is to begin scouting for an experienced Realtor, and local lender.
A seasoned Realtor will understand the documents that you do not fully understand and make referrals to the appropriate inspections for you to consider. A local lender will bring in the appraiser who will estimate the fair market value but won’t tell you the condition of the house. Check house inspector credentials thoroughly, as most states do not license them. It’s advisable to not omit the inspection process, even if you’re buying a new house.
Make your offer.
Before you make an offer to buy, investigate financing. Naturally, a buyer who is in a pre-approved position has a strong impression on the seller. It’s best to hire a buyer’s broker who knows how to advise you on what offer terms to make. It’s easier to make any required changes during the offer process rather than re-negotiating later on in the process.
Keeping a lid on closing costs
Think hard about the settlement fees before you submit your sales offer. Don’t hesitate to negotiate the price either with the seller or with a service provider. Keep in mind, what looks cheaper can end up costing you money so work with providers you trust.
Conclusion
Buying your dream home in Folsom involves careful planning and consideration of your financial capabilities, housing needs, and market conditions. By defining your priorities, working with trusted professionals, and negotiating wisely, you can navigate the home-buying process with confidence and secure a home that meets your expectations. Ask me for a copy of my Home Buyer’s Guide.
