How Much House You Can Afford?

Once you have made up your mind that you're serious about buying that home or farm, and before you start looking at properties, round-up all the information you will need to show to lenders. Check our simple Mortgage Application Check list to help you gather the information you will need. Review your financial situation to determine the down payment you can afford and how large a load you can carry monthly. To figure out your Debt-to-Income Ratio divide your monthly payment obligation on long term debts by your gross monthly income. When you've completed that task, arrange to meet with lenders to have your figures analyzed by mortgage formulas to illustrate your affordable price range. This important first step, known as "pre-qualifying"-- will offer you an idea of your financial comfort zone. We have prepared a brief list of Questions you may want to ask you lender.

Define Your Housing Needs

Now that you know how much home you can afford, it's important to begin thinking about just what type of home you want and need. Buying a home is probably the single largest investment you are going to make, so be sure you get the right home for you. Pay special attention to the location and overall quality of the home. Tip: Don't chase an exact price or particular feature, like a swimming

pool or workshop. Price can be negotiated with the seller, assuming your offer is in the ballpark, and you can always customize your new home by adding that pool after you move in.

Develop a list of what you need and what you want. "Needs" are those must have items, while "wants" are desirable features that you should consider ranking (high, medium, low). Come up with a "Don't Want" list as well! Finding a home with all the desired features is only part of the procedure. The prospective property should also be free from objectionable or negative features.

The Search is On!

Once you've been pre-qualified for your mortgage, and made up your mind on your wants and needs, it's time to hit the road searching for your new house. Pat and Vince are very knowledgeable about the real estate market in San Benito County and adjacent areas. Both Pat and Vince will be able to guide you through the entire home buying process: locating the right home for you in the right location, making an offer and responding to any counter-offers, having the house appraised and inspected, preparing for settlement, and finally closing the sale. They also have the resources of MLS, multiple listing service, a database of all the available homes in a given area, at their fingertips.

Pat and Vince also know the local farmers and ranchers and are accustomed to "Cold Calling" potential sellers to secure a listing which might fulfill your want list.