Buying Like a Pro

Are you thinking about buyinga home?  If you are a first-time buyer,or haven’t purchased for many years, you may have many questions as to how toget into the real estate market.  Educatingyourself-before you step into an open house-will set you up for success when itcomes to purchasing a home.  The fourtasks below will help you go from being stressed and overwhelmed to preparedand excited.

1. Find a Realtor.  Ask yourfriends, neighbors, family and co-workers for a referral.  An agent that your sphere has successfullyworked with is a great place to start. Meet them for coffee, or at their office, and see if you are a goodfit.  Ask for references and then callthem.   Your goal should be to work with someone whois knowledgeable, straightforward, and easy to reach for questions andconcerns.  There are all levels ofprofessionalism and experience in every industry, so find someone that bringsvalue to you. Once you do, they will walk you through the process and educationyou every step of the way.

• Talk to alender. If you don’t know a lender,ask your agent, your family and your friends who they work with. Talk to morethan one lender before you commit.  Shoparound to make sure you are getting the best loan available.  Once you have chosen a lender, they willpre-approve you for a loan based on your income to debt ratio and your FICOscore.  Your lender will take intoconsideration all the expenses you have now and all you will have once youpurchase a home.  Remember, there is morethan just a mortgage payment to consider when you are budgeting for a home.  Other expenses include primary mortgageinsurance (if applicable), homeowner’s insurance, possible Homeowner’s Associationfees, property taxes and maintenance.

•  Prepare Your Deposit.  Before you do anything with your accounts,talk to your lender about where you are getting your deposit funds from. If youare pulling money from the stock market or a 401K, they may have you start theprocess of liquidating those funds before you start looking at homes.   If youare receiving a gift from a relative, you will need to provide a gift letterstating so.  Your lender has a specificform you and your relative will need to fill out.  In most sales, you will need 3% of thepurchase price available within 3 business days of getting your offeraccepted.  This is called your EarnestMoney Deposit.  It is given to the escrowoffice after your offer is accepted; and once escrow is opened.  You will pay the remaining part of yourdeposit at the close of escrow when your loan is funded.

4. Do your Homework.  When you have a clear vision of what youwant, you’ll have an easier time finding it. What city do you want to live in? What do you want in a home?  Make a list of the features that areimportant to you including the number of bedrooms, bathrooms, kitchen size andstyle of home.  Then, think about your dealbreakers.  A busy street, a pool, atwo-story home:  If these are items youdo not want, write them down.  This willallow you to eliminate the homes that do not fit your criteria which gives youmore time to focus on those that do. Once you have your list, sit down with your Realtor and discuss yourneeds.  They will set up a search for youof all homes that fit your specific criteria. Now you are ready to startlooking for your dream home!

Monrovia real estate facts for October:  Currently 54 properties on the market.  We had 30 properties sold in October at an average sq. ft. price of $506.00.  The average sale price was $780,000 with 40 days on the market.

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