1. How to determine your price range for buying a home?

Every home buyer has their own unique financial data. For instance, the amount of money your make each month is used to calculate the size of mortgage, or money loaned to you to purchase a home. This calculation also takes into consideration how much money you owe each month to organizations or other entities.

It is very important to contact a mortgage lender or banker to help determine how much you can spend on your home. In most cases, you will need to come up with a down payment. This is a percentage of the purchase price of the home. For instance, if a home costs $250,000, and you qualify for a loan that requires you to put down 3% at least. You can expect to put down $7500. This number does not include the loan fee and other transaction costs that are are sometime associated with purchasing a house. You should shop around and find the best rate, the best costs, and get a good faith estimate each time. If you would like the names and numbers of some great people to help you with your home loan, call us at 206.230.5426 or email us at loans@yourfirsthouse.com.

2. How to locate homes for sale within your price range.

The best way to locate homes for sale within your price range is to contact a real estate professional. You can also check out local publications, drive around looking for signs, or use the Internet to help your search. However, for the best results call a real estate agent and ask them to send you all the current listings within a specific price range, in the areas you desire. 

Call me today and you will receive an email with listings that meet your needs within 24 hours of sending the email.

3. How does the real estate cycle work? 

The real estate cycle begins with you, the Buyer. Once you have made the decision to purchase a home, condo, townhome or some vacant land to build your dream home on, you need to get pre-approved for a loan amount. After you know how much you can afford, it is time to find the right piece of real estate. Now you are ready for some help. Your real estate agent will provide you with all the current listings that meet your needs. Once you locate "the house," it is time to make an offer. The offer reflects the purchase price, the closing date, what is included in the sale, i.e. washer / dryer / etc., not to mention a number of other items that your real estate agent will explain to you while putting the Purchase and Sale Agreement together. Once the offer is written, it is time for you agent to present your offer to the owners of the home or condo, or in some cases, present the offer to just the agent representing the homeowners. Once you reach an agreement, it is time to have an inspection, review the title report, review the neighborhood, if you contact allows that, work with your lender to assist in the preparation of your loan, and review any disclosure that the seller has made. The seller should fill out a property disclosure form or a Form 17.(In Washington) An escrow company needs to be chosen to handle the closing process. Please refer to the previous page for a flow-chart. Call us with any questions you have at 206.230.5426.

4. How to negotiate a fair price when you find the perfect home?

When negotiating a fair price for a home, you must consider a number of factors. First, other homes that has sold in the area. What they sold for? How long they were on the market! How comparable they are or are not to this property. It is important to give and take while negotiating the final price for your home. The current owners, sometimes have an emotional attachment to the home, you will understand this better after being a home owner for a few years. Everything is negotiable, including increasing the purchase price and asking the home owners to credit you for closing costs. Your agent, should be able to provide you with a comparable market analysis of homes that have sold in the area.

5. Who should I call to help me find a home?

If you live in the greater Seattle and Eastside call me at 206.230.5426 or send us an email to get more information. If you live outside this area and would like a personal referral from us, we can find the best agent for you in your area. Call us today for an agent in your area!


How do I make sure my agent is handling the transaction to closing?
Confirm with your agent that all contingencies have been satisfied. Contingencies include an inspection contingency, a title contingency, a financing contingency, are the most common contingencies when buying your first home. An inspection contingency is necessary for you, within a specified number of days, to hire an inspector to inspect the home you are looking forward to purchasing. The inspector should check the home out thoroughly for any damage or structural issues, like roof, foundation, siding, electrical, plumbing, leaks, etc. If the inspector finds some problems, which is normal, you have the opportunity to ask the seller to fix these problems or you do not have to purchase the home. However, it is usual that a seller will fix some issues, but not cosmetic. For example, if there is a leak in the roof and a leak in the bathtub. The Seller might agree to fix the roof and get a warranty on it for 5 years. He also might credit you a $ amount to fix it yourself. Your financing contingency give you a specified number of days to satisfy the needs of the lending institution. If you financing contingency is 20 days, than in 20 days you need to be very confident that your lender will be able to fund this loan. The title contingency allows you to review the title of the property. All of these contingencies are more complicated than the previous paragraph has explained. Always ask you agent for an explanation as you go forward.

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