|
It's true that home prices are starting to rebound, but it's still a buyer's market. Prices are around 30% lower than their peak before the crash and mortgage rates remain near all-time lows. This doesn't mean you should jump in without being prepared, though. Before you start searching for Danville homes for sale, here are some things to understand first. Run the Numbers First The first step you should always make is creating a plan to decide how much home you can afford to buy. While it's a great time to buy Danville real estate, this doesn't necessarily mean it's a good time for you to buy, given your situation. Determine your monthly net income and debts to see how much of a mortgage you can afford, but don't forget to calculate property taxes, private mortgage insurance (if putting down less than 20%), homeowner's insurance and utilities. Save Up 20% It's a good idea to save up 20% for a down payment. There are a few reasons for this. Putting down 20% or more means you won't have to get private mortgage insurance (PMI), and you can begin with equity in the home already. Be Informed You certainly wouldn't buy a home just because the pictures online look nice, right? Just as you wouldn't go only by the pictures online, don't assume the price is right. Do thorough price research and talk to people in the neighborhood. It's also important to consult with an experienced Danville realtor who can help you determine if the asking price is fair. What's Your Credit? Make sure you understand where your credit stands before you even think about buying Danville real estate. To get the best rates on a mortgage, you'll need excellent credit. You'll need good credit to even qualify for a mortgage, regardless of where you go. Take the time to correct any mistakes before you begin the mortgage process and do what you can to improve your credit. Even a few points difference in your credit score can save or cost you thousands. Get Pre-Approved Getting pre-approved for a mortgage before you start searching for homes is essential. This time-consuming process will give you a commitment letter, which guarantees you a mortgage for a specific amount, and it gives you a price range to help you shop. You can narrow down your options based on how much the bank is willing to lend you, and being pre-approved with make your purchase offers on Danville homes for sale that much stronger. Find a Great Agent Finding a great Danville realtor is just as important as finding the right home. Find a Danville real estate agent who represents buyers and has the experience, honestly and connections you need to guide you through this process and help you make a smart decision. Get a Home Inspection Even if you think you've found the home of your dreams, don't skip on getting the house inspected. A home inspector will point out problems you may miss, and help you spot potentially costly problems before you buy. If the home needs a new roof, for example, you may negotiate the price with the seller, or pass altogether. Get Homeowners Insurance Finally, once the home is yours, don't forget to get a homeowners insurance policy. If you've been renting most of your life, you probably don't realize just how expensive owning a home can be -- and just what can go wrong. Christine Daniel writes for The Ray Marquez Real Estate Team, which focuses on Blackhawk and Danville real estate in the San Ramon Valley.
Related Articles -
danville real estate, danville realtor,
| 
