Selling Charlottesville real estate in Central Virginia since 1927
Financial tips for buying a home
Buying a home can seem like an overwhelming task. From determining how much you can afford and securing financing to finding the right home and negotiating the transaction, the dream of home ownership can be a fearsome one if you don't know where to begin and what to expect.
Your Roy Wheeler Realty Co. sales agent will guide you through the homebuying process until that dream is a reality. From 1927 (when a handshake sealed the deal!) until today (when substantially more than a handshake is required) we have assisted thousands of people in their quest of home ownership in Charlottesville and Central Virginia. Get in touch with us and in the interim here are a few tips to consider when preparing to purchase a home:
- Is your "financial house in order? Begin by taking a close and hard look at your financial situation. Do you have a clear picture of your income versus expenses? If you've had past credit problems, it doesn't automatically mean you'll be turned down for a home loan. Talk to a lender for advice. Your Sales Agent at Roy Wheeler Realty Co. would be glad to refer you to lenders who can help you sort through your questions confidentially.
- How much are you considering investing as a down payment? Today, many programs require as little as 5% down payment and we've seen lender offerings of no down payment. FHA and VA financing can also be utilized or you may qualify for a first-time buyer program.
- Consider lining up your mortgage before you begin house hunting. One of the best negotiating tools you can have in your pocket is to already have your financing lined up with a pre-approved home loan. The seller now knows that not only are you serious, you are qualified to proceed to closing.
- What should you ask a potential lender before committing to a specific loan program? Ask about the terms of the loan, the down payment required, whether the interest rates are fixed or variable or a combination of the two, whether there are pre-payment penalties, points and other terms or costs associated with the loan (such as appraisal, processing, mortgage insurance or other fees). Require a "Truth in Lending Statement" that outlines in writing the costs and fees the lender is verbally describing. This usually uncovers any hidden fees that explain why that lender's interest rate is lower and that can quickly meet or exceed what looks like a higher interest rate with another lender.
- Does your dream home fit your budget? Mortgage calculators can provide you with the ability to figure out what your mortgage payments would be, given all sorts of down payment and interest rate scenarios. But don't stop there. Your Sales Agent may be able to locate lender programs that more precisely fit your needs. Make sure to ask.
More information about mortgage resources:
- Financial tips for buying a home
- How to qualify for a mortgage
- Home affordability estimate
- Mortgage lender web links
