Here are a few things to consider before you start shopping for your dream home
It is critical to be pre-approved, even before you find the perfect house. It is very disheartening to find a home you love, only to find out that you can’t afford to buy it. Be prepared to supply a bank or lender
with your overall financial picture, including your debt, income, and assets. Once you receive a pre-approval letter we get to work. If there is a multiple offer situation, most home sellers will accept the offer that the buyers are already pre-approved. We know which lenders are most likely to get you the best financing for your situation. We are also First Home Certified so we are familiar with what you will need to qualify for special programs.
Mortgage options. There are two main types of mortgage loans for you to choose from: adjustable-rate mortgage (ARM) or fixed-rate mortgage. Sometimes an ARM is a better fit, even though your interest rate can go up or down since there is typically a limited percentage the rate can increase in a given period. If you decide ARM, after the introductory period is over, your interest rate will either go up or go down according to market trends. With a fixed rate mortgage, your principle payment will always stay the same. If you have questions, we are here for you.
Start setting aside money now.
Do you know how much you’ll need? Find out here
. Now is the time to start tucking away any money that you can to build your down payment.
- Earnest Money. On average, you will need 1% of the purchase price for an Earnest deposit. This will be deposited upon acceptance and will be applied to either your down payment or closing costs at closing.
- Closing Costs. According to Zillow, closing costs are “fees associated with your home purchase that are paid at the closing of a real estate transaction.” These costs can sneak up on you if you’re not ready for them and they can cost anywhere from 2%-5% of your total loan depending on your lenders fees.
When you start shopping, this is the time to already know what it is you’re looking for.
You should take a look into all of the details of a home, not just the bedrooms and bathrooms. Consider commute time, nearby schools, habits and lifestyle preferences. You should also account for how long you are planning to live in this home, and how many repairs you are willing to make during the time period. Think about this, and more. Explore local attractions, and make regular visits. Check out our resources tab
for links to local offices and businesses.
Figure out which neighborhood is right for you.
Take some afternoon strolls down the neighborhoods around the homes in Bismarck that you’re interested in. You will gain the best perspective of the home you’re interested in by seeing it in person, as well as the neighborhood. If you would like to learn more about what Bismarck, ND, has to offer, visit the Resident Information page
provided by the City of Bismarck.
Read the fine print. From regulations to housing authority covenants to contingencies, there are so many items that could leave you with a surprise after closing if you’re not diligent. Look over your contracts and contingencies and make sure you’re happy with the considerations. We pride ourselves on customer care, and we are happy to go over your contract with you to ensure you are getting exactly what you want.
Get your agreements in writing. As always, it’s imperative that you get all agreements in writing. Your documents will be invaluable as a reference later if you need them.