Top Five Questions Dothan Home Buyers Ask
October 24th, 2007 - Categories: Buying a home in the Dothan area
By: Keshia
We as real estate agents get asked a lot of questions. Answering those questions is one part of this business that I love the most. There are questions that are asked more often than others, and here are arguably the five we are ask most often.
How much home can I afford?
Generally speaking you can probably qualify to purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend on your employment history, credit history, current savings and debts, and the amount of down payment you are able to make. You may also be able to take advantage of special financing options. You never want to purchase a home that will have payment that you can not afford.
How do I find a good agent to work with?
One sure way to find a good real estate agent is to ask friends, family, or a neighbor that has purchased a home recently. Get them to tell you what they liked best about their experience, and what they didn’t like. If they were satisfied and recommend the agent they used, you should interview that agent to see what they have to offer. Another excellent way to find a good real estate agent is to go with a company or brand name you can trust and that has been around for years. Many companies, especially the top brands, send their agents through weeks of rigourous industry related training. CENTURY 21 offers a Buyer Service Pledge to guarantee their services. You must keep in mind that just like in any profession there are good and bad agents out there and that experienced agents are not necessarily better than new agents.
What is the best time to buy?
I don’t know how there could be a better time to buy a home in Dothan than right now! The number of homes on the market is near an all-time high, meaning there are plenty of homes in every price range for you to choose from. Mortgage rates are still very low historically, with rates around Dothan running around 6.25% to 6.5%. The Dothan economy is still strong and vibrant, and unemployment remains below the state and national averages. And despite what you are hearing from the national media, lenders are still letting folks borrow money to buy a home.
What if I have credit issues?
The very first thing you should do is to talk with a good mortgage lender and let them point you in the right direction. If you need a recommendation, send me an email. Should you feel your credit is too bad and you would rather work on cleaning it up yourself before talking with a lender, then there are a few things you can do. First, take inventory of your credit report and work on eliminating the negatives. Any dings on your report that are not true should be reported to the credit bureaus immediately. Pay all your bills on time and work toward paying them off as soon as possible. One thing NOT to do…work with a credit repair service. You can do everything yourself that they do for you, and it won’t cost you anything but a little time.
How much cash will I need to purchase a home?
The amount of cash that is necessary depends mostly on the type of mortgage you choose, but there are also a few other costs involved. Generally speaking though you will need money for your earnest money deposit, a home inspection, an appraisal and credit report from your lender, some prepaid items such as homeowner’s insurance and prepaid interest, and your down payment. Closing costs may also be required depending on the sales contract negotiated with the seller. Have a question that I didn’t cover here? Leave a comment below or send me an email and I will try to answer it.