Starting the race as a winning buyer

This is an incredible time to buy a home in Sonoma County. We have increased inventory, excellent interest rates, and profitable returns for current home owners who are ready to move. All of these elements together can create a competitive environment, but you can win the home buying race if you prepare well with a great trainer, your real estate agent. Before you jump into the competition, read on so you are fit to win!

Ready!

Training starts by becoming familiar with the many advantages of home ownership:

Appreciation - Your home can increase in value over time, increasing your equity and your personal net worth.

Personalization - You can change or improve your home to suit your style and needs, such as painting or wallpapering, installing new flooring, or upgrading the bathrooms.

Space - A house generally offers you more space inside and out than a rental apartment, along with the ability to remodel the existing space or add on.

Enjoyment - Plain and simple, most homeowners take a great deal of pride in their homes.

When you think you might be ready to jump in the pool, it's time to get specific. Get ready to make the right move for your situation by considering your goals and plans for the future. Meet with a trusted real estate professional to discuss:

When you want to make your move

How much money you would like to spend

What type of home you would like

Where you would like to live

Set!

To be ready to jump at the next opportunity, there is one step that is essential: finding out how much you can qualify for and deciding the type of financing that will work best for you.

Most lenders require you to pay a portion of your own funds—the down payment—toward the purchase of a home. Saving for a down payment can be one of the most challenging steps in buying a home, but there are some programs that offer down payment assistance. Your lender will have more information about these opportunities.

Your down payment plus your pre-approved loan amount will determine how much home you can afford. A down payment can come from many places: savings, investments such as stocks and bonds, gifts from relatives, company bonuses, equity in other assets, and life insurance policies, to name a few. Then again, there may be home mortgage alternatives that do not require a down payment.

If feel that you need more information before moving forward, you might want to speak with a lender about receiving pre-qualification. If you choose to become pre-qualified, the lender will determine how much you can borrow based on financial information you provide to the lender. Pre-qualification is useful for making preliminary decisions about how much home you can afford, but does not assess your creditworthiness. You will need to fill out a loan application and go through the lender's loan approval process at a later date.

Before you begin looking at properties, you will want to become pre-approved for a loan. When you are pre-approved, the lender conducts a thorough credit check and verifies your employment and deposit. The lender's pre-approval is a commitment to loan up to a certain pre-determined amount. The only thing missing is the lender's appraisal of the home to confirm its value.

Pre-approval is so important for a winning offer because it strengthens your offer and negotiating position. A home seller will often choose an offer that is pre-approved for a mortgage over someone whose financial picture is still in question.

Go!

With your pre-approval letter in hand, you are standing at the starting line! It's time to identify a property you love, and make the offer. When you make an offer, the seller can:

Accept it

Reject it outright if the offer does not meet the specifications in the listing

Counter it with different price and terms

Here are some tips to present a Gold Medal offer and set yourself apart from the competition:

Pre-approval: Make sure you have been pre-approved, not just pre-qualified.

Strong deposit: Provide a substantial earnest money deposit. This is "good faith" money and shows the seller you are serious about purchasing the home.

Contingencies: Limit the number of contingencies; include only the ones you really need, like financing and an inspection, etc.

With determination and a great team behind you, you are starting the race as a winning buyer. You are on your way to the prize of a lifetime – a new home! Ready, Set, Go!