First Time Home Buying
Congratulations on your decision to become a homeowner! And, that old saying is true: It’s more affordable to own than pay rent. Because you are going to be a new homeowner, the team at Sold by Eric sticks with you every step of the way. We help you determine everything from how much home you can afford to the offer process to the closing process, and incentives to all our new homeowners.
What’s your price range? Let’s find out.
Although all lenders are different, many go by the 28 percent rule. That means your mortgage payment (including principle, interest, taxes and HOA fees) should be 28 percent of your monthly gross income. Calculate how much you can afford this way:
Household Income: $80,000 (before taxes)
Times 28% equals $22,400
Divided by 12 months $1,866 – This would be your estimated monthly payment.
BALANCING BUDGET AND HOME SIZE
Now it’s time to start a realistic home budget. Gather all your monthly expenses including auto loans, insurance, taxes, credit cards, grocery budget, entertainment, child expenses, and any other monthly debt you have.
Learn the trade offs
With every major purchase, such as a home, there are always the extras. These include:
- Contingencies – These come in the purchase offer. Your offer can be “contingent” upon certain items. Things like, the fence will be repaired or other repairs will be made. Or, the offer is contingent upon all appliances staying with the home. We can also help you make decisions on which items should be contingencies.
- Home Warranties – Obtaining a home warranty is a no-brainer, even for DIY folks. We have a plethora of home warranty providers with varying options to help you make an informed decision on per visit deductible and what is covered.
- Insurance – All homeowners need insurance for the home to protect you and the lender from liability. Ask us about our connections with local agents; we’ll point you in the right direction!
THE CLOSING PROCESS
Signing the final papers to buy the home is usually held at a title company. When you first arrive, youragent will be on hand to answer any questions you have. While the paper pile may seem like a never-ending stack, each document has its own purpose. Our relationships with local title companies ensure you understand everything you are signing.
MYTHS & TRUTHS
Buying a home is a major purchase. You may hear stories from friends and families that may be true or just a myth. For example, “As the buyer, you must pay for all the closing fees.” Or, “Buyer’s pay all of the agent commission.” This is not true. We help you navigate through the myths and truths.
More Myths and Truths
ARE YOU READY TO BECOME A FIRST TIME HOMEBUYER?
FIND YOUR HOME TODAY