Finding and purchasing a home that will meet your needs now and in the years to come is a significant and often stressful time. The Tahoe Dream Team’s goal is to make this transition as smooth as possible. Here are some tips that you may follow to make the search of finding your dream home seamless. We have an extensive library of literature on every aspect of buying a home. Contact us to receive a hard or soft copy of additional Buyer’s Information.
Before you start looking for a home you should ask yourself a few questions and make some important decisions:
- Where do you want to live? Do you want to be close to a ski area, trails, or shopping?
- What kind of house would you like or do you need? Are you looking for a particular style? How many bedrooms and bathrooms do you want? Do you want a garage?
- How much house can you afford? Have you consulted a mortgage lender to determine the size of the mortgage you would qualify for?
- Have a reputable Lender pull your credit report and make sure the information is accurate. If you find any errors take steps to correct them immediately. A good lender should be able to council you on ways to improve your credit. We suggest using a good, qualified, local lender, or using a lender you have had prior good service from and that you have a previous working relationship with.
- Browse through listings here on TahoeDreamTeam.com. This will give you a good feel for the types of homes that are on the market and what they cost.
- Take a self-guided driving tour with listings and maps from our website to assist you in deciding which neighborhoods you would like to invest in and what you will get for your dollar.
- Start saving money – you’ll need to have cash on hand for a down payment and closing costs.
- Don’t incur any additional debt. Pay down your credit cards – and don’t apply for any new ones. Don’t make any major purchases on credit – buy the furniture or car later.
- Contact the Tahoe Dream Team at 530-583-1354. We can help you determine how much you can afford and provide you with information on homes that may interest you. We will utilize our extensive experience and knowledge to match you with the house of your dreams.
How much house can you afford?
A quick way to estimate the size of the mortgage you may qualify for is to take your gross monthly income (that’s before taxes and other deductions) and multiply it by .28. This works out to just over 1/4 of your gross income.
Mortgage companies use something called qualifying ratios to determine how much they will lend you. Most mortgage companies use either a 28/36 ratio or a 25/33 ratio. The first number in each pair is the percentage of your gross income that the lender would consider acceptable as a monthly mortgage payment (i.e. if you make $3,000 per month, 28% of that is $840 per month).
The second number in each pair is used when all debt payments are considered, not just the mortgage. (i.e. if you make $3,000 per month, but also have a $250 a month car payment, 36% of $3,000 is $1,080, minus the $250 car payment equals $830).
Why you should work with the Tahoe Dream Team!
Working with a professional Realtor to buy your home is a good idea for several reasons:
- We will analyze your financial situation to help you determine how much you can afford.
- We know the process of buying a home and will explain it to you.
- We can easily access information on all properties listed for sale by Realtors in our area.
- We can set up appointments for you to see homes that interest you.
- We will help you complete all the necessary paperwork when it comes time to make an offer.
- We will help you arrange financing.
- We will be there at closing to answer your questions and make sure that everything runs smooth.
- We can save you time and money by using our experience and knowledge to get you the best price and terms.