How to Prepare to Buy an Orange County Home in 2018

The home-buying process is extensive and could be overwhelming. This is especially true for new homeowners who don’t do their homework.

If you are in the market to buy a home next year, now is the time to start preparing. We are here to help!

Getting Pre-Approved

The moment you choose to buy a house, work with a mortgage lender to get pre-approved for a mortgage loan. Knowing how much you qualify for will narrow down your options and direct your research.

But do not overextend yourself. Just because you qualify for a two hundred fifty thousand dollar loan, this does not mean your house should cost two hundred fifty thousand dollars. You need to consider other expenses such as taxes, interest payments and homeowners insurance.

Prioritize Your Top Priorities

After you have an idea of how much you would like to spend, make a decision on the lifestyle that suits you and your family. You should consider factors like proximity to shopping and entertainment, great schools and how much land you would like. Deciding what is most important to you will help further focus your search.

Start Saving Money

Most mortgage lenders require a down payment towards your mortgage loan, which could be up to twenty percent. If you do not have enough money at your disposal, you can save for a bit longer or perhaps borrow against your IRA or retirement account.

Despite how you come up with the initial deposit, make sure you can prove the source of the funds. Lenders will not accept cash payments and if your down payment was a gift from a generous giver, be prepared to bring a gift letter.

Count the Cost

You need to also be prepared for other out-of-pocket expenses during the home buying process. You will need money for things like closing costs and home inspections before your close, appliances, furniture and utilities afterwards. Do your homework to understand how much money you will be paying upfront and save accordingly.

Credit Matters

You need to be extra careful with your credit during this process. Review your credit report and make sure there are no inaccuracies. Don’t open new credit accounts and make major purchases. Several inquiries could negatively impact your credit score. This can impact your loan decision and your interest rate.

Hire a Pro

When it comes to finding your dream house, you shouldn’t have to go at it alone. A qualified real estate agent is familiar with the ever-changing real estate market and can guide you through the process. This includes contract negotiations.

A mortgage lender can help you make a wise choices based your monthly budget and lifestyle needs. They also share tricks and tips with you along the way to save you time and money.

Clean House

When you find the perfect home, you will be moving in a matter of weeks. Take the time early in the process to get rid of items you do not want to bring with you. Starting this early on will make it easier to pack when the time comes.

Are you in the market to buy a home in Coto de Caza, Rancho Santa Margarita, or Mission Viejo? Click here to talk to the Ryan Grant Team today!