Bo Lee - Coldwell Banker Residential Brokerage

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Posted by Bo Lee on 4/11/2021

Purchasing a house on a budget can be difficult for even the most diligent property buyer. Lucky for you, we're here to help you create an effective homebuying budget and reduce the temptation to spend beyond your means to acquire your ideal residence.

Now, let's take a look at three tips to help you craft a property buying budget.

1. Examine Your Finances Closely

Your income, everyday expenses and other financial factors may impact your ability to buy a house. Therefore, you should analyze your finances closely to determine how much you can spend on a residence.

Once you evaluate your finances, you can establish a price range for your home search. Next, you can kick off a house search and move one step closer to acquiring your dream house.

2. Get Your Credit Score

Your credit score is a three-digit number based on your outstanding debt, length of credit history and other factors. It may have a major impact on your ability to secure home financing and establish a successful homebuying budget. As such, you should review your credit score and work to improve it before you enter the housing market.

To obtain your credit score, you can request a copy of your credit report from each of the three reporting bureaus (Equifax, Experian and TransUnion). You are eligible to receive a free copy of your credit report annually from each credit reporting bureau. Thus, you should take advantage of this complimentary perk and obtain your credit report as soon as you can.

If you identify outstanding debt on your credit report, you should work to pay this off. Or, if you find errors on your credit report, you should contact the bureau that provided the report to fix these mistakes.

3. Meet with Lenders

Banks and credit unions are happy to meet with you to discuss various home financing options. If you consult with these lenders, you may be better equipped than ever before to create a successful homebuying budget before you launch a house search.

Ultimately, lenders can help you get pre-approved for a mortgage. If you get a mortgage prior to searching for a house, you'll know exactly how much you can spend on a residence. Then, you can speed up your home search and discover your dream house faster than ever before.

As you get ready to begin your quest for your ideal residence, you may want to hire a real estate agent too. This housing market professional can put you in touch with top lenders in your area and help you secure home financing. Furthermore, a real estate agent can tailor a home search to your property buying budget. Perhaps best of all, a real estate agent will help you negotiate with a seller's agent to ensure you can get the best price on any home, at any time.

Create an effective homebuying budget use the aforementioned tips, and you can establish a property buying budget and use it to streamline your home search.





Posted by Bo Lee on 3/21/2021

Purchasing a house should be an unforgettable journey for all the right reasons. However, problems sometimes may arise that can make it tough to enjoy a positive homebuying experience.

Whether it's struggling to know where to search for your dream home or getting the financing you need to purchase a house, myriad problems may prevent you from enjoying a positive homebuying experience. Lucky for you, we're here to help you identify potential homebuying hurdles and eliminate such problems before they escalate.

Now, let's take a look at three tips to help you reap the benefits of a positive homebuying experience.

1. Enter the Housing Market with Clear Expectations

If you know you want to purchase a house, it helps to enter the real estate market with clear expectations. That way, you'll be better equipped than ever before to streamline your house search.

Consider what you want to find in your dream house. For example, if you want to own a house near the beach, you should conduct your home search accordingly. Or, if you want to buy a home with a big backyard and outdoor swimming pool, you can hone your home search as needed.

Think about areas where you want to reside too. By doing so, you can focus on available homes in specific cities and towns.

2. Know Your Homebuying Budget

Get pre-approved for a mortgage you'll be glad you did. Because if you have a mortgage at your disposal, you can pursue houses in a specific price range and speed up your home search.

Obtaining a mortgage can be simple. In fact, if you meet with a variety of banks and credit unions, you may be able to get a mortgage in no time at all.

Remember, banks and credit unions employ knowledgeable mortgage specialists who are happy to assist you in any way possible. If you have any mortgage questions, these specialists can respond to your queries. And as a result, you can gain the insights you need to get a mortgage that matches your finances.

3. Employ a Real Estate Agent

A real estate agent is a difference-maker, particularly for a homebuyer who wants to seamlessly navigate the property buying journey. With a real estate agent at your side, you can achieve the best-possible results, regardless of where and when you're searching for a home.

Typically, a real estate agent will meet with you, learn about your homebuying expectations and help you map out a property buying strategy. This housing market professional can offer expert insights into the local real estate market and ensure you can pursue houses that match your expectations. Plus, a real estate agent will set up home showings, help you submit an offer to purchase your dream house and negotiate with a seller's agent on your behalf. And if you ever have concerns during the homebuying journey, a real estate agent will address them immediately.

Ready to enjoy a positive homebuying experience? Use the aforementioned tips, and you can quickly and effortlessly navigate the homebuying journey.




Categories: Buying a Home   buying tips  


Posted by Bo Lee on 3/14/2021

For those who want to enjoy a seamless homebuying experience, it helps to prepare accordingly. That way, you will be ready to identify and address any hurdles that come your way during the homebuying journey.

Ultimately, there are lots of things you can do to avoid a complex homebuying journey, such as:

1. Establish Homebuying Criteria

If you enter the housing market with homebuying criteria in hand, you can search for residences that match your expectations. Best of all, you may be better equipped than ever before to streamline your quest to find and acquire your dream home.

To craft homebuying criteria, think about what you require from a house. For instance, if you need a home that is located near your office in the city, you can hone your house search to residences in or near the city itself. On the other hand, if you want a home that offers two or more bedrooms, you can search for a house that provides the space you need.

You may want to create a list of home must-haves, too. This list may help you simultaneously narrow your home search and speed up the homebuying journey.

2. Know Your Homebuying Budget

There is no need to focus on homes that fall outside your price range. Instead, develop a homebuying budget, and you can avoid the risk of wasting time pursuing a house that you are unable to afford.

Oftentimes, it helps to meet with banks and credit unions before you launch a home search. These financial institutions can teach you about different home financing options so you can develop an effective property buying budget.

Banks and credit unions can help you get pre-approved for a mortgage as well. Once you have a mortgage in hand, you will know precisely how much you can spend to acquire your ideal residence.

3. Collaborate with a Real Estate Agent

Let's face it no one wants to encounter roadblocks during the homebuying journey. Fortunately, real estate agents are available in cities and towns nationwide, and these homebuying experts are happy to help you achieve your desired results.

A real estate agent can offer comprehensive insights into the homebuying journey. He or she also can help you conduct an in-depth home search, set up house showings and much more.

In addition, a real estate agent understands the challenges associated with buying a house. He or she will help you alleviate stress throughout the homebuying journey and ensure you can make informed decisions along the way. Plus, a real estate agent is ready to provide homebuying recommendations and suggestions at your request.

When it comes to navigating the homebuying journey, you may want to start planning today. Thanks to the aforementioned tips, you can map out a successful homebuying journey. And as a result, you can boost the likelihood of purchasing a house that will serve you well both now and in the future.




Categories: Buying a Home   buying tips  


Posted by Bo Lee on 3/7/2021

If possible, it helps to maintain a flexible deadline as you navigate the homebuying journey. Because if you have a tight deadline in place, you risk making a rash homebuying decision. And as a result, you may pay too much to acquire a home. Perhaps even worse, you risk purchasing a house that fails to match your expectations.

As you prepare to kick off your homebuying quest, it helps to plan ahead. Fortunately, there are lots of things you can do to streamline your home search and discover your ideal residence in no time at all.

Now, let's take a look at three tips to help you accelerate the homebuying journey.

1. Prepare Homebuying Criteria

If you know you want to buy a home, you should put together property buying criteria. That way, you can enter the housing market with a plan in hand to acquire your dream residence.

To establish homebuying criteria, think about where you want to reside. For instance, if you want a home close to parks and other family-friendly attractions, you should hone your house search accordingly. On the other hand, if you need a house that offers quick, easy access to family members, you should search for a home near these relatives.

Consider the features you want to find in your dream home, too. If you make a list of home must-haves, you can focus exclusively on houses that have the features you require.

2. Establish a Budget

Usually, it is beneficial to begin a home search with a mortgage at your disposal. If you get pre-approved for a mortgage, you will know how much you can spend on a house. Then, you can search for houses that won't force you to exceed your budget.

To obtain a mortgage, you should meet with a variety of banks and credit unions. These financial institutions can teach you everything you need to know about home financing. Plus, they can help you make an informed mortgage selection.

3. Hire a Real Estate Agent

With a real estate agent at your side, you should have no trouble performing a successful home search.

A real estate agent is devoted to homebuyers' success, and as such, will do what it takes to help you achieve your desired results. For instance, if you want to buy an affordable house in a small town, a real estate agent will make it simple for you to do just that. Or, if you want to purchase a home near your office in the city, a real estate agent will craft a custom homebuying plan so you can accomplish your goal.

Furthermore, a real estate agent takes the guesswork out of buying a house. If you ever have homebuying concerns or questions, a real estate agent will respond to them without exception.

Want to enjoy a fast, stress-free homebuying experience? Take advantage of the aforementioned tips, and you may be better equipped than ever before to seamlessly navigate the homebuying journey.




Categories: Buying a Home   buying tips  


Posted by Bo Lee on 2/14/2021

Photo by Jonathan Borba from Pexels

Many home buyers have lots of questions as they go through the buying process, especially first-time buyers. Whether you’re looking for a $50,000 house or a multi-million dollar luxury home, the questions are often the same.

How Much House Can I Afford?

Lenders use several factors in determining whether to loan you money, including your credit score, loan-to-value and debt-to-income. If you are self-employed, you could make $400,000 per year and still not afford a $150,000 home. Lenders look at your income, and if you are self-employed like many luxury home buyers, you use tax deductions and expenses to your benefit. However, doing that lowers your adjusted net income. If your adjusted net income plus depreciation doesn’t meet the debt-to-income bar for the lender, you won’t qualify for the loan. People in this situation need to find a lender who will lend based on bank statements instead of tax returns.

How Convenient Is This Location?

Luxury home buyers often have location concerns. You travel more and have more people — friends and relatives — visit. That means you need a home location that is convenient for travel. If travel convenience is a concern, ask your real estate agent about the distance to the airport, the ability to rent limos, and other travel concerns.

How Much Down Payment Do I Need?

Most loans require 20 percent down if you do not want to pay private mortgage insurance (PMI). However, if you are buying a multi-million dollar luxury home, that might be difficult if you don’t have liquid assets. Before you start looking, get a pre-approval from a jumbo lender, including the amount the lender requires with and without PMI. You can adjust the amount you are willing to spend or take the time to liquidate assets to get the down payment if you have your heart set on a home that requires a high down payment.

What Does My Credit Score Need to Be?

Conventional loans have a cap, which changes depending on your location and whether the Federal Housing Finance Agency (FHFA) increases that cap. If your mortgage is going to be higher than that cap, you will need to take out a jumbo loan unless you put enough down so that you are financing an amount below the cap. When you take out a jumbo loan, you are at a higher risk to the lender, so you have to jump through more hoops, including having a higher credit score.

If you are applying for a conventional loan, especially a loan backed by the VA, Fannie Mae or Freddy Mac, your credit score could be as low as 500. However, with a jumbo loan, your score must be at least 680. Some jumbo lenders require scores as high as 720.




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