Buying Your Home - What You Can Afford
How much does my real estate agent need to know?
Real estate agents would say that the more you tell them, the better they can negotiate on your behalf. All REALTORS licensed in California are bound to the Code of Ethics that essentially says we must operate in the best interest of our clients... it's called a Fiduciary responsibility.
How much will I spend on maintenance expenses?
Experts generally agree that you can plan on annually spend 1 percent of the purchase price of your house on repairing gutters, caulking windows, sealing your driveway and the myriad other maintenance chores that come with the privilege of homeownership. Newer homes will cost less to maintain than older homes. It also depends on how well the house has been maintained over the years.
What can I afford?
Knowing what you can afford is the rule #1 in Home Buying. For example, we shouldn't be looking at homes in the $400k range if your lender will only loan $300k. Most lenders will be happy to roughly calculate what you can afford and prequalify you for a loan. Each lender will have their own requirements, but in general these are the factors they look for.
1. gross income
2. the amount of cash you have available for the down payment, closing costs and cash reserves required by the lender
3. your outstanding debts
4. your credit history
5. the type of mortgage you select
6. current interest rates
When selecting the lender for your Big Bear purchase, you may want to contact your current mortgage lender first... however, there are several lenders here in Big Bear that have given my clients very good service... this list is not all-inclusive, but just two that I have direct recent experience with:
Where do I get information on housing market stats?
There is another rule in Real Estate... "all real estate is local". National real estate trends and stats are interesting, but they just don't map out to what's happening in Big Bear. My other website, www.BillYoung-BigBearHomes.com, has more info than the average bear wants to know. However, I encourage you to have a look... lots of Big Bear real estate history as well as past and current trends that we can use to look forward with.