I am a Realtor serving Cape Cod, New Hampshire and Coastal Rhode Island. Many of our clients are second home buyers and sellers. We also work with first time home buyers and commercial property.
This is a period in time that many a “shoulda, woulda, coulda’s” will be born. Real estate prices are very low, inventory is decent and interest rates are historically low. It is the perfect storm for real estate.
Now, that being said, there are steps you need to take to ensure the smoothest possible transaction. “Smooth” is a relative term and the meaning differs depending on whether it is a traditional sale, a short sale of foreclosure.
Your First Steps in Finding a Home
Determine what you can afford.
Just about everyone has the dream of a home within earshot of the pounding surf or with sweeping views of mountain vistas. However, our budgets can sometimes restrict that dream. Before you set out on your home search, make sure you have the funds and credit to purchase the home and the income for the cost of ownership.
First step: Make sure you have good credit.
Go online and seek out a truly free credit reporting service. Avoid the sites that ask for a credit card and force you to sign up for a monthly service. Review your credit history and make sure there are no discrepancies. If there are, contact the company that is listed as the problem and begin cleaning it up immediately. Then choose a mortgage lender and get pre-approved, not just pre-qualified.
How much do I need for a down payment?
That is a loaded question. Many programs are still available that allow only 3.5% down for a first time home buyer, if you qualify. Other plans call for at least 10% and most lenders may require 20% or even 30% on second homes.
How do I choose a lender?
The three types of lenders you should shop are local banks, national banks and a mortgage broker. Do not apply to more than one, but shop their programs and rates. Every time you apply, the lender will pull your credit report and if you do that multiple times it can adversely affect your credit score. A local bank may be more helpful with unique properties as they have a better understanding of the value of local markets. If it is a more traditional home and neighborhood then the national lenders and brokers can be very competitive. Just make sure they always use local appraisers.
What are the operating costs?
There are always costs of ownership. Insurance can be significant, especially if you are in a coastal property. Be sure to understand the associated coverage. Taxes can vary widely, from wonderfully inexpensive to something you will need to budget. Also, lawn maintenance, building upkeep, furnishing, trash removal and all the normal expenses are to be considered. If it is a condominium, then many of these costs are part of you association fee and are easier to foresee and budget.
I know what I can afford now what?
If the property you are seeking is in New Hampshire, Rhode Island or on Cape Cod, contact us. Otherwise, you should contact a local Realtor that specializes in the area. If you know the targeted area and property type, you can also jump online and search for a home yourself. A Realtor, however, may be able to save you time and frustration by doing the search with you and setting you up on an automatic search such as our On-demand Property Finder.
Although the process can be emotional, it is also a financial investment that needs to be carefully considered and executed.
Now, DO IT! Don’t be a “woulda, shoulda, coulda”.
Cape Cod Real Estate 