Getting Ready To Buy East Bay Real Estate
Purchasing a property is probably one of the biggest financial decisions you will ever make. Regardless of whether you are a first time home buyer or experienced investor, you must make careful decisions throughout the buying process. Below are some things to consider before you buy.
Why Are You Buying?
Are you tired of paying expensive rent or simply outgrown your current home? Are you looking for an investment property? Having a clear sense of your “why” behind a new purchase will help you evaluate the right factors and choose the best property.
Are You Ready to Invest?
Property ownership has been one of the top strategies for building wealth - and still is! Whether it’s your first home and you’re building your first asset, or looking for a rental property, it’s a great time to invest. Property investments are also some of the most stable assets to build and don’t carry the risk like other forms of investment, such as stocks or collectibles.
When you are ready to get started, call us at (925) 754-6100 or complete this short form and one of our agents will be in touch.
Other Things To Consider
Get Your Financials in Order
Now is not a good time to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability. Large purchases or loans can affect your credit and balance sheet in a way that can limit your buying options. Your credit score will hold a significant impact on the type of property you can buy, your interest rate and overall property price. We can work with one of our preferred lenders to get an updated credit to know exactly where it stands. The lender will research your credit ratings from the three credit reporting agencies Equifax, Experian and TransUnion. We are happy to recommend seasoned, knowledgeable lenders in the residential, construction, and commercial and investment real estate fields.
Organize Your Finances
When it’s time to make an offer, you’ll want to know you’re fully prepared to close the deal. In order to avoid delays, bidding wars, or conflicts, preparing your financials is crucial.
- Bank accounts
- Recent pay stubs
- Check Your Credit Rating
- Financial statements
- Tax returns for two years
- Credit cards
- Auto and other loans
- Copies of leases for investment properties
- 401K statements, life insurance, stocks, bonds, and mutual account information
Pre-Qualified Vs. Pre-Approved
The difference is the verification process lenders use to determine how much you qualify for. With a pre-qualification, lenders rely on self-reported information to offer you a quote. It doesn’t typically require them to verify your credit, employment, or financial documentation. On the other hand, pre-approval involves verifications to approve you for a mortgage loan. Lenders review your credit, verify your employment, and look at financial documentation, like pay stubs, bank statements, and tax returns.
A pre-approval is a stronger indication to the seller that the offer is solid and will close.
Check out our list of preffered lenders here.
What Price Range Can I Afford?
Resources For East Bay Home Buyers
The journey to homeownership starts by understanding how much you can afford. One major thing to consider is your down payment, if any. Many consumers believe it's impossible to buy a home without at least 20 percent down. But thanks to various government-sponsored programs, many people can now buy a house with as little as 3.5 percent toward a down payment. Veterans of the U.S. military have zero-down programs available.
Finding a knowledgable Mortgage Loan Officer is key to recieving the most up-to-date information on available lending options. Feel free to check out or vetted list of preffered lenders below - or, if you just want to run some quick rough numbers, check out our free mortgage calculator.