LAUGH AWAY YOUR HOME BUYING WORRIES WHEN YOU FOLLOW THESE SIX STEPS

1. Get a Home Buyer Commission Rebate from Your Agent: Getting a Commission Rebate is a huge home buyer advantage that you (and most buyers) probably didn’t know existed! For instance, if you are buying a $750,000 home and the agents commission is 2.5%, then you should get a Commission Rebate of $9,375.00. That’s a chunk of cash you can use to make upgrades, pay your closing costs, buy down your interest rate, go on a dream vacation, contribute to you retirement…you get the picture! Make sure you buy your next home with a Get Paid Half® agent.

2. Reduce Debt & Increase Credit Score: Before you start looking for your next home you should request a credit report. This will give you a starting point on understanding your credit score before you request a loan. Your credit score will influence the interest rate of your loan.

3. Save Money to Set Yourself Up with a Large Down Payment: While it is possible to purchase a home without a 20% down payment it’s best to get as close as possible. This will allow you to have a smaller mortgage rate, Avoid PMI, and receive a better rate. If you do not have a 20% down payment you may qualify for a VA or FHA loan.

4. Keep a Conservative Budget: It’s just not the list price that is included in the purchase. Keep in mind there are inspection fees, earnest fees, moving expenses, and typically new furniture purchases that you should prepare for in advance. If money is tight, ask your agent to negotiate the closing costs for you. Along with the initial moving expenses you should also be aware of your monthly budget moving forward. With homeownership comes property taxes, HOAs, home repairs, and more. You want to make sure you are prepared for future budgeting as well.

5. Get Preapproved: Your preapproval can help if you are putting in an offer against someone who is not…makes you look like a more ready now buyer. Your preapproval is based on your actual income, debt, and credit history. This is different from prequalification, which is how a lender determines how much you can afford. Don’t even think about writing an offer until you have your pre-approval letter.

6. Set Your Home Buying Budget: By getting your finances in line before your first home showing you know the price range of a home that you can actually afford. Homes in San Diego have always been expensive. Frankly, you most likely can’t afford your dream home. Be prepared to “settle” for getting 75%-80% of your dream home. It is important to set a realistic budget that fits your income level and characteristics you want in a home.

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