|
Photo taken by Sonny Kwan, with a Nikon D40X Realtor® with John L Scott Real Estate Seattle, WA, All information is believed to be accurate, but is not warranted in any way. Visit my website www.seattleidx.com to search all homes on the internet or contact me for a referral of a great agent in your area!
©2009 Sonny Kwan , All Rights Reserved
|
I'm ready to buy a home, where do I start? Is a question I have been asked 453 times now. First you need to consider where you want to live, more importantly is how much I can afford dictates where you can live. What are the living arrangements? Are you used to living on your own or with roommates? Do you want others to help subsidize your home mortgage by paying part of the rent for sharing a room in the house or do you want the sole privacy of having your own palace. How much can you really afford? Do you want a huge extravagant mansion, live like a rockstar and eat top ramen every day? Or are you more practical and want a modest three bedroom , two bath home in the suburbs? Or a one bedroom 500 square feet condominium flat in the heart of Seattle?
Pre-qualify talking to a lender over the phone will help you quickly assess how much you are able to borrow and get a ballpark figure on what you can afford to buy before going out to look at an overpriced home out of your comfort zone.
Pre-approval is getting down to the bare bone of getting more detailed information to the lender about your circumstances including financial records, Tax returns, work history, etc..Having a pre-approval tells the seller you a serious buyer and have started the process of making a legitimate offer on their home.
How to get money your lender will give you a debt to income ratio and compare your gross pre-tax income to housing and non-housing expenses. Non-housing expenses include long term debts such as automobile loans, alimony and child support, student loans, etc... Your lender will also be able to provide an estimate of what your down payment should be and what your monthly mortgage payments will cost.
Copyright © 2009 Sonny Kwan All rights reserved ; I'm ready to buy a home
Earnest money is what the buyer puts as a down payment in the form of check or money order to show the seller how serious you are about making an offer to buy the home. It must be a substantial amount to demonstrate to the seller your intent to purchase the home in good faith. It tells the seller you are indeed a very serious buyer interested in the home and the check you are writing is large enough to hurt your pocket book in case you back out of the offer without a good reason to do so.
Earnest money are usually 1-3% of the purchase price, and if the offer is accepted by the seller, then the earnest money is deposited into an escrow account and becomes part of your down payment at closing.
If the offer is rejected and turned down by the seller, your money is returned to you. If you back out of the purchase, depending on the circumstances, you may forfeit the entire amount of earnest money.
There are certain instances where a seller will simply accept another offer just because they were presented with a higher earnest money amount. Check with your agent, he/she may be able to find out from the listing agent if there are multiple offers being presented.
Copyright © 2009 all rights reserved : Earnest money and how much should I put down
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved