Buying a home in Chelan, WA, can be a fun and exciting new adventure for you and your family. However, there is nothing more discouraging than unforeseen bumps in the road. Fortunately, buying a home, even if you’re a first-time home buyer, is a lot easier when you prepare for the process. And when you work together with a competent, dependable real estate firm like Coldwell Banker Chelan, you can save time and money.
Today’s housing market is a fast-paced world, and you have to be ready to act with a moment’s notice. Once you decide to become a homeowner, where do you begin? Here are some things to consider and work on before you start shopping for your dream home.
Learn the financing basics. Learn the difference from being preapproved and prequalified. Being prequalified means that you’ve taken the first steps in the initial lender screening, while being preapproved means that you’ve taken all of the required documents to the bank and been approved for a certain size of mortgage (depending on your income and assets). If given the choice between a prequalified or a preapproved, most home sellers will opt for the preapproved.
Research your mortgage options. What type of loan will be best for you? Would you benefit from a fixed mortgage or an adjustable-rate mortgage? If you choose a fixed mortgage, which option would be better--a 30-year or a 15-year? Learning the difference between home loans and picking the right one for you can be the difference between saving thousands of dollars and not. If you have questions, our knowledgeable Buyers Agents are here for you.
Hire a buyer’s agent. The peace of mind you can receive when you hire a buyer’s agent from Coldwell Banker Chelan is worth more than just a good night’s sleep. Having a buyer’s agent who helps you facilitate the purchase of your next Chelan, WA, home can also save you money in the long run. Our friendly and helpful agents have years of experience and they are ready to help you get into the home of your dreams.
Start setting aside money now. Do you know how much you'll need? Find out here. Now is the time to start tucking away any money that you can to build your down payment.
Down payment. This is the largest potential chunk of money that you can invest in your home up front. Down payments can range anywhere between 3%-20% on average. A higher down payment can mean that your offer will hold more water and may also lower your monthly payments and your upfront fees. There are some programs available to first time home buyers which don’t require a large down payment, and the buying agents at Coldwell Banker Chelan know if there are local low down payment options.
Closing Costs. Closing costs can be a surprise if you’re not ready for them, especially when they can cost anywhere from 2%-5% of your total loan. It is possible to have these costs covered by the seller if you include them in your offer and the seller approves. However, the seller covering closing costs is less prevalent in today’s market, so it’s best to plan ahead.
Paying for mortgage points. Points cost 1% of your mortgage cost and can act as prepaid interest so your buying down your interest rate. These mortgage points can save you money over the course of your mortgage.
Move in costs. Whether you’re moving across the country or just across town in Chelan, WA, there are some moving costs that you ought to take into account. Perhaps you’ll be spending a few days out of work or you’ll need to hire a moving service. Whatever the case is, you’ll need to prepare for those inevitable costs.
Ask yourself the big (and little) questions. When you start shopping, this is the time to already know what it is you’re looking for. This is the time to answer the questions you never even considered. More than bathrooms and bedrooms, you should consider your habits and lifestyle preferences. How far away are you willing to live from work? How much time in your week could you commit to yard work/home improvements? How long are you planning to live in your new home?
Figure out which neighborhood is right for you. Do you have specific needs or considerations? Take some afternoon drives or strolls down Chelan, WA, neighborhood streets to get a better idea of the area. And which view do you want? A view of Lake Chelan, Stormy Mountain or Elephant Head? Find out more about Chelan, WA here.
Buying a home in Chelan, WA
When looking at a home, don't shy away from elbow grease. There is a difference between a home needing structural remodelling and a fresh coat of paint. Yes, just one out-dated shade of paint can put you off of a home, but if you look past the color or the carpet, you may find the potential for your perfect Chelan, WA home.
Submit a strong offer. This can be tricky. If your offer is too low, it will get turned down, but if your offer is too high, you could be out a few thousand dollars. So where’s the sweet spot? As the housing market changes so quickly right now, it’s best to get expert advice from your dedicated Coldwell Banker Chelan Agent.
Read the fine print. From regulations to housing authority covenants to contingencies, there are so many items that could leave you with a surprise after closing if you’re not diligent. Look over your contracts and contingencies and make sure you’re happy with the considerations.
Get your agreements in writing. As always, it’s imperative that you get all agreements in writing. Your documents will be invaluable as a reference later if you need them.
For more information about buying Lake Chelan real estate, call our office today!