Scott's Blog

Many first time buyers dont realize the importance of obtaining a mortgage pre-qualification from a reputable broker or bank. It isn’t that time consuming, and it can actually save you a lot of time and aggravation. Especially for busy brides, grooms & newlyweds, you have a lot of planning and preparing to do, thank you notes to write and work to catch up on. You likely don’t have a lot of time to spend days and days driving around looking at homes which may not even be in your range.

Here in Westchester, NY the inventory is always changing and prices vary so much from town to town. For example, a starter home for sale in Armonk, NY is in the $600,000 range, vs. a co-op for sale in Hartsdale which start in the low 200,000 range.

I recently had a client who wanted to go shopping for a home “incase” something they wanted was on the market. They weren’t ready to pull the trigger for a year or so, and had no mortgage pre-qual. I told them I would be happy to send them listings to browse and advised them to start driving neighborhoods to get a feel for where they might like to live, however much of even that effort is irrelevant (unless you like driving around at $4+/gallon) if you can’t qualify for the prices in that neighborhood. I love meeting and touring with clients, however there is a way to do it Green, and there is a way to be wasteful. Gas, time, money, paper (for print outs), sellers/home owners (time invested in showing/cleaning/presenting the home). There are a lot of resources that go into the buying and selling process.

So do your environment and pocket a favor and GO GREEN by shopping for a pre-qual before you look! It makes for an all around more pleasant experience for all involved. Then your agent can e-mail you listings, neighborhood info and so on that is better suited toward your specific price range and preferences.

There are many online loan and mortgage calculators, and a general rule of thumb is that your mortgage payment shouldn’t exceed 1/3 of your net monthly income. However, with the sophisticated and complex mortgages available, it is really worth your while to get a more specific idea of what program and loan amount you qualify for up front. 

By the way: Being from the mortgage industry, we know that even a mortgage pre-qual from a month or two ago can be irrelevant or perhaps that program or bank has even disappeared! Remember to keep your pre-quals current and ask your mortgage professional to drop a line or email when things pertaining to your loan and program change. 

Tip: Looking to save some gas and time? Ask your agent to take you along when they preview homes in markets that interest you. This way they can help give you an idea of the area and inventory while you go along for the ride.

Dont forget: You can do quite a bit of your own research on neighborhoods and schools online. Buyers should be involved in one of the largest purchases of their lives!

Read more at Our Newlywed Real Estate site & blog!

Many newlyweds and soon to be home owners are often fuzzy about the actual steps and details involved in buying their first home. Here are 4 of the 8 steps toward buying your first home:

The 8 Steps to Home Ownership

Step - 1 Make the Decision to Buy

It seems obvious, but it’s good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house. Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income.

Step 2 - Seek Professional Guidance

Meet with a qualified, experienced Realtor, such as The Richardson Realty Team, to discuss neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.

At this time, you will need to get pre-qualified for a mortgage loan if you will be needing one. Your agent can help you to obtain a Pre-qualification, or ask around for a great referral from a friend or family member.  A pre-qualification is a written statement from a loan officer or bank indicating their opinion that you will be approved for a mortgage loan up to a certain amount, which might take into consideration your income, credit score, employment and other determining factors. The fact that you are pre-qualified will help us know your price range and what type of home your and your agent can look for. Different loan programs such as FHA may have restrictions on what type of home ie: HUD approved condo only, single family and so on.

Step 3 - Begin the Hunt

After the initial meeting, your agent will search all resources available for houses on the market that fit your criteria. Then, they’ll schedule appointments to tour the houses at times convenient to you. As you tour houses, the agent will point out positive features and negative features that you might not notice. They’ll ask you to tell them what you like and what you don’t like. You’ll probably amend your “wish list” as you tour houses, some things will become more important and others less important. With this new information, you will refine your search criteria to narrow in on the house of your dreams.

Step 4 - Know the Market

An agents knowledge of the local market is an essential factor in the house search. As you tour houses, the agent should let you know when the asking price has negotiating room and when the house is “priced to sell”. The Richardson Realty Team’s unique market knowledge will keep you a step

ahead of the “house hunting competition”. In a “seller’s market”, it is not unusual to see multiple offers on a property, full-price offers and even above-price offers. On the flip side, during a “buyer’s market” there are more houses for sale than buyers. This gives you more negotiating room as

houses are taking longer to sell. Presently, in many parts of the country it is considered a “buyers market”. Here in Westchester, NY, real estate prices are showing signs of stabilizing but are still considered by most to be a “buyers market”.

Check out http://westchesternewlywedhomebuyers.wordpress.com/ for the last 4 steps toward buying your first home….!