Posted 7.10.13 @ 8:55
If you and your partner haven’t taken the plunge just yet but you want to buy a home, you’re in luck! You’ll still be able to buy a home, you’ll just need to be smart about it. Like buying a home on your own you’ll both need to be able to prove your income and assets, you’ll want to work with an attorney or real estate lawyer and you’ll need to plan for the worst.
How Do You Want the Title to Be Held?
Your first step should be a frank conversation about how you want the title to be held. Will it be a 50/50 split? Understanding the percentage at which you’ll both be vested now will help you avoid problems at closing. There are so many different arrangements when it comes to this that you’ll want to work with an attorney or a lawyer to make sure all your bases are covered. Remember to figure this out BEFORE you start all the other steps.
Your next step is getting preapproved for your mortgage. You need to know how much the two of you can qualify for as co-applicants ahead of time.
Remember that preapproval is a guarantee of available funds, while prequalification just means they’ll take your application. Virtually everyone is prequalified – but with preapproval you’ll have a letter you can show your luxury realtor (us!) and sellers to get the upper hand.
You need to know how much house you can afford right off the bat, so don’t skip this step!
Find the House You Want to Buy
This is where we come in. Once you know how you’re going to vest the property and what your home budget is, it’s time to start searching. You’ll want to decide between a house or a condo, a brand new home or a resale home, etc. We suggest making a list of your wants and needs and we’ll take it from there.
Complete Your Loan Application
Once you’ve found the home you want, it’s time to complete your loan application. Your lender will send out a team to appraise the property to make sure that its value is correct. You’ll want to start having the home inspected and audits done to make sure that there aren’t any issues with the property; if there are, you’ll be able to stipulate that these be fixed by closing or a certain date.
Remember to have all of your documentation ready for the final approval; ask your mortgage broker or loan officer for a list of things you’ll need to finish this step.
Close On Your Home
Once you’ve been approved and the home checks out, it’s time to close. You’ll need to sign your promissory note, the deed and a few other pieces of paperwork and you’ll be done.
As co-applicants you’ll both be responsible for the mortgage; if you default both of your credit will be affected. It’s important that you plan for the future and plan for the worst. Work with an attorney to make sure that buying a luxury home for sale is really the right way for you to go.
Trying to find the home that’s right for you? Let us help! Give us a call today and see what the Goodale Miller Team can do for you.