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Buying a home can be fun, difficult, and an emotional rollercoaster all at the same time. I recently bought a home and I am going to share with you 3 Easy Tips that are going to save you a lot of time, trouble, and especially…frustration. There are certain things that you should know when purchasing a home…and if you are anything like I was (a first time home buyer), you’ll have no idea what anything that Mortgage Brokers or Realtors are going to tell you! So…remember this when you want to purchase a home!

1) Put Everything on Paper -

Buying a house is a great investment…if you can afford it. Don’t break the bank just to get in a house. Robbing Peter to pay Paul isn’t the answer. So here goes…when you want to buy a house you want to know how much you can afford. Doing the math in your head sounds great until you get the mortgage bill and wonder “How am I going to pay this?!?!” Putting everything on paper is going to make it a lot easier. Something you want to remember when doing the “Pre-Math” is that you ALWAYS want to over shoot how much something is. If you get your Electric Bill right now for your apartment…it’s going to be a little different that when you are paying the electric bill in the house. If you are paying $75 bucks now for electric…know that when you are in the house the chances of you having a $75 electric bill are SLIM TO NONE!! This is where “Overshooting” come in. Add an extra $75 bucks to that then you will have a better idea of what you can afford. Don’t forget to include Credit Cards, Car Payments, Insurance, Cell Phones, Gas (we know gas is entirely too much money!), Grocery Shopping, and of course…how much can you afford for a mortgage. Be smart about it. We all want to live in Beverly Hills and ride around in Ferrari’s…but we have real jobs and real bills. A lot of Mortgage Company Websites have the “How Much Can I Afford” Calculators on their websites. You can itemize your bills and get a great idea of what you can afford!

2) Pre Approval Letter -

Before you even begin to look for a home you are going to want to get a pre-approval letter from whatever mortgage company you decide to go with. It’s really simple to get one. After finally talking to a human at the company of your choice just tell them that you are looking for a home and you would like a pre-approval letter. It takes all of 5 minutes to do. You will need your Social Security Number and Paystubs. That’s it! It’s a pre-approval…so they are going to give you a ball park estimate of how much you can afford! Sellers LOVE pre-approval letters because it makes them feel like they have finally “hit the nail on the head”. Now…just because your pre-approval letter is for $500,000 that doesn’t mean you should look for a $500,000 house! Be smart! What can you really afford?

3) How Much Money Do You Have To Pay Up Front -

No one likes surprises. Especially when it comes to MONEY! Most mortgage companies offer 100% financing…which is a GREAT way to go if you don’t have the 20% to put up front when you start the process…who really has 20% of a $200,000 house just laying around for a rainy day? If you decide to go the 100% financing route you have already made a smart decision. This way the only thing you are going to have to pay for is the standard stuff that goes along with buying a house. You will have to pay for the WDO Report, a Pest Inspection, and the Appraisal…some mortgage companies require that you pay a year of Hazard Insurance in advance too. If you are smart then you can actually roll your closing costs into the loan as well…that’s why it’s called “100% Financing!!!” Essentially it’s the idea of “No Closing Costs”. Here’s an actual breakdown of how much money you are going to need: The WDO Report costs between $100-$120. The Pest Report is going to be between $150-$200. The Appraisal is going to cost between $300-$350. Finally, Hazard Insurance is between $500-$600 for the whole first year. So total cost out of your pocket is between $1050-$1150. Sounds like a great idea when it comes to buying a home…$1050 bucks and you can be in a new home in 30-45 Days. It doesn’t get any better than that!

It sounds like a lot to remember but it isn’t. You are going to need a little cash to get started and then you are on your way to having a beautiful new home as soon as YOU want it! How bad do you want a new home?

I recently bought a house and these 3 Tips are going to save you a lot of time, trouble, and headache. I am 23 and this was my first home. If I would have known this before I began…the process would have been A LOT easier! I closed in 30 Days and made my first mortgage payment yesterday!

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