If you are a tired of renting for the last few years and want to own your home instead? The following are some great tips to prepare for the home buying process.
1. Get familiar with the prices of homes in the neighborhood you want to live in. Get in touch with a local realtor and get listing alerts and recent sales data. All they need is your email and you can view it at your leisure.
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| View of Mission Viejo |
2. Make use of online mortgage calculators to know how much your approximate mortgage payment will be every month should you buy a home in the next 30-60 days. The calculated figure will show you the total housing payment, which includes principal, interest, property taxes and homeowners insurance. In certain locations, you'll have to pay an HOA fee and/or Mello Roos taxes which can increase your monthly payment substantially. There are many single family homes, townhomes, and condos in Aliso Viejo, Mission Viejo, Lake Forest, Laguna Hills and nearby areas that require an HOA fee.
3. Determine the amount you'll pay for closing costs. This is not an area to forget about as closing costs can change a lot of home appliance or upgrades you were going to do upon move-in. Closing cost fees are typically lender's origination, title insurance and settlement/escrow, and monthly recurring expenses such as property taxes, homeowners insurance, and HOA.
4. Is your monthly income adequate to cope with owning a home. Lenders recommend that buyers pay out a maximum of 28% of their monthly income on housing expenses and 43% for all combined monthly expenses.
5. If you're not truly approved by a lender? Find a local OC lender and get pre-approved. The realtor you talk to should have a good referral to get it done. Once you're pre-approved for a mortgage, it'll help you negotiate from a position of strength when you are searching for a home to buy.
