Deciding to Buy
Purchasing a property is likely the biggest financial decision you will ever make. Whether this is your first purchase, or you are an experienced buyer, this decision must be made carefully.
Why Do You Want To Buy?
Are you tired of paying rent? Have you decided to pay your mortgage and not your landlord’s? Have you outgrown your current home? Are you looking for an investment portfolio? Are you looking for a rental property? Would you like a larger yard? Would you rather live in a different area? Do you want to shorten your commute? Having a clear sense of why you want to buy will help you choose the right property.
Has Your Income Grown?
Property ownership is an excellent investment; whether you are looking for your dream home, a rental property, or to expand your investment portfolio. Owning real estate is one of the least risky ways to build equity or obtain a greater return on your initial investment.
Preparing to Buy
Before you start shopping for your property, it is a good idea to make some preparations.
Building Your Green File
A green file contains all your important financial documents. You will need it to secure financing for your property. The typical green file should contain:
- Bank account statements
- Investment statements
- Credit card statements
- Auto loan information
- Recent pay stubs
- Tax returns for the previous two years
- Copies of lease agreements for any investment properties
- 401K statements, life insurance, stocks, bonds, and mutual account information.
Check Your Credit Score
Your credit score will have a large impact on what type of property you can buy and at what price. We recommend you check your credit rating with an experienced lending institution so we can determine what you can afford. The lender will research your credit ratings from the three credit reporting agencies Equifax, Experian and Trans Union. We will be happy to recommend experienced, knowledgeable lenders in the residential, construction, commercial, and investment real estate fields.
Be Careful With Your Finances
When you are preparing to buy a home, it is best to not make any sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability.
Choose A Real Estate Agent
Buying a property requires making many important financial decisions, understanding complex issues and completing a lot of paperwork. It helps to have an expert in your corner to guide you through the process. We can also provide you with access to property listings before they hit the general market.
Here are some factors to consider when choosing your real estate professional:
- Look for a full-time agent who has experience completing transactions similar to yours.
- Interview a few agents to see how familiar they are with your preferred location to buy.
- Ask how much time the agent will have for you and if they are available at night and on weekends.
- Ask about their credentials and education. A good agent will continually improve and gain knowledge of the latest real estate trends and hold the highest designations in their respective fields of expertise.
- Does the agent return your calls promptly? Time is money when attempting to buy a property.
- Ask for a list of properties they have sold or a list of references.
- Choose an agent who listens attentively to your needs and concerns. Pick an agent with whom you feel comfortable.