Purchase Home with Chris Tsamoudakis and First Coast Financial

Once you have decided that purchasing a home is right for you, there are a a couple of questions you want to ask yourself; how much space will you need? How much space can you afford? Be realistic. It will help you find a home that’ll best fit your needs.

Knowing what you can afford can help you determine what type of home is suitable given your price range. Save yourself the time and frustration by narrowing down your search between a single-family home, a condo, and other housing options.

Time and money are both major investments required in the home buying process. Working with the right professionals is imperative and will make the process easier on both your bottom line and peace of mind. Make sure to find professionals who have your best interest in mind. Chris Tsamoudakis with nearly 19 years of experience helps you with Purchase Loan, Refinancing and Home Equity.

Make sure you have a clear budget. To find the best loan option to suit your budget, there are a few questions before you begin your search;

• Do you have a down payment?
• What is your income-to-debt ratio?
• What is your credit score?

It’s important to figure out your monthly payments and how much you can afford. Your monthly mortgage payment consists of what is referred to as PITI (Principal, Interest, Taxes and Insurance).

• Principal: The initial borrowed amount to purchase the home and the remaining outstanding balance throughout the life of the loan
• Interest: the charge for borrowing the money
• Taxes: what is assessed by your local government and typically paid to your lender as a portion of your payment and collected in an escrow account. The lender will then pay them to the government upon their due date

Insurance: what is collected by the lender and put into an escrow account. Insurance is comprised of 2 prominent types of coverage. Homeowner’s insurance provides coverage for damages caused, but not limited to wind and fire. For those who are making smaller down payments on their loan, mortgage insurance typically is required. In the instance that mortgage requirements aren’t met, the insurance provides protection for the lender.

Mortgage interest rate is one of the biggest concerns for homeowners because it affects the monthly payments for the entire life of the loan. For this reason, homebuyers search for steps they can take to get the lowest interest rate out there. Several factors should be considered when researching interest rates:

• Do you prefer fixed or adjustable rate?
• Will discount points be paid?
• Do you want a short- or long-term loan?

• Ability to shop with the confidence of knowing your price range
• Opportunity to identify credit problems that can be addressed early in the lending process
• Negotiating power as some sellers seek comfort in offers from prequalified buyers
• Prequalification gives 1st-time homebuyers the advantage of matching their offer with other homebuyers’ offers

Prequalification is of no charge to you because the prequalification process is not comprehensive, it’s not guaranteed nor is it considered any type of loan commitment. It simply means that you’ve approached a lender who was serious about helping you determine what you can afford and will walk you through the proc

Finding the right neighborhood may be as important as finding the right house. There are key questions asked when considering a neighborhood such as; Is it near my job? Is it in the school district I want for my children? Is the neighborhood suitable for me and my family presently and in the future?

Each home provides different options in terms of space, responsibilities, and ownership. It’s best to consider all these factors when deciding on whether to purchase a single-family home, a condominium or a townhouse.

What do you need versus want in a home? Do you prefer a single or two-story home? How many bedrooms and bathrooms are required? Do you want a backyard? A home office? Consider all the different aspects and prioritize the features you would like to have.

Heavy negotiations are involved when purchasing a home. A realtor can be a valuable resource to have to help determine the appropriate initial offer to extend. During this process you’ll want to consider the following;

• You’ll want to provide the prequalification letter from your loan officer. Sellers prefer an offer with financial security
• You’ll want all negotiations in writing in order to have a record of deals and decisions made while helping comb through misunderstandings
• In an earnest deposit (or “good faith”) you’ll want to have money ready. All of this will be placed into an escrow account until the purchase transaction is complete

Now that the seller has accepted your offer, you’ll need to know the following;

• Review your loan commitment with your loan officer and make sure you understand your loan’s rate terms
• Obtain homeowner’s insurance and any other insurance if required
• Set a closing date and time when using your loan commitment and purchase agreement as guides
• Confirm that a property survey was ordered with a closing agent or attorney
• Do a final inspection of the purchasing home
• Make sure you’ve met all the guidelines and conditions in the purchase agreement established by the seller.
• Because personal checks and/or cash are not typically accepted, bring the total you owe in closing costs in the form of a certified or cashier’s check to your closing appointment

Now that the money has officially changed hands, you’re nearing the end. Next step is to finalize the purchase agreement. This is a legally binding contract between the buyer and the seller of the property which contains all terms and features of the final transaction. This includes;

• Property address and legal description
• Sales price, loan, down payment and deposit amounts
• Names of all parties involved in the transaction including buyer, buyer’s agent, seller, seller’s agent, mortgage broker/banker and any attorneys
• The transaction’s time limits that may apply
• Any contingencies that need to be addressed before the deal is complete and finalized
• These contracts are not uniform as every home transaction is different.