While there are several types of credit scores, most lenders use your FICO score to determine your eligibility for a loan. This three-digit number, ranging from 300 to 850, informs lenders of your credit worthiness based on your length of credit history, available credit, on-time payments and outstanding balances, and credit to debt ratio, among other factors. You credit report will show you the factors used to calculate your credit score in much greater detail.  Many banks and credit care companies offer a free credit score and your credit report can be obtained for free annually from the U.S. government.

There are several styles of lenders that offer a multitude of loan types — each combination with its own set of pros and cons.  Your loan options will include shorter term loans with higher payments and lower interest rates or longer term loans where you pay more interest over time but your monthly payments are lower.  Read reviews and compare average interest rates and APR’s.  Once you have enough information to narrow down your options, use an online mortgage calculator to compare and contrast down-payment amounts and interest rates to get an idea of potential monthly payments and what type of property and terms you can afford.  You are encouraged to seek out online quotes and speak with several lenders before selecting one to do business with.  Be sure to have documentation available to provide proof of income (recent W-2's, paystubs, bank statements, etc.).  Between online lenders, credit unions, and your local bank branch you are sure to find a lender and loan type that suits your needs.

Not to be confused with a mortgage pre-qualification, a pre-approval means that a lender has checked your credit and verified your documentation to approve a specific loan amount.  Once pre-approved, your lender will provide you with a pre-approval letter that states that your loan will be approved once you purchase a home and submit the appropriate documents.  This means that you now have a price range to begin searching for your dream home!

Time to contact a licensed professional real estate agent and Jacek at Absolutely Sold is your go to agent to show you the best homes for sale on Long Island available on the market right now.  Stop by the office or connect with Jacek online to partner with the friendliest and most knowledgeable professional offering the personalized, one-on-on service that you deserve when making one of the largest single purchases most homebuyers ever make.

Jacek is a real estate agent that is from Long Island making him an invaluable resource in searching for properties.  After the initial meeting, Jacek will show you properties and take note of your likes and dislikes in order to learn your preferences and gain a better understanding of what homes to show you next.  With our cutting-edge polygon map tool, you’ll be able to draw a boundary around your preferred search area to ensure you never miss a listing by being limited by a zip code.  Jacek is a local expert that is prepared to take the time necessary to explore the items on your wish list and navigate the pros and cons of tradeoffs necessary to find you the home to suit your needs and budget.

With Jacek’s help, you will choose a starting price to offer — Jaceks’ expertise regarding an offer terms will include your budget and needs, knowledge of the local market, condition of the home, and the seller’s situation will all help determine the best strategy.  After determining contingencies (home inspection, appraisals, closing costs, non-financial incentives, etc.) and how much money to put in escrow, the initial offer will be accepted, declined, or a counter-offer will be made.  In competitive markets, consider writing a house offer letter, essentially a cover letter for buying a home, to win the home seller’s attention and make your offer stand out.

After negotiations are complete and the purchase offer is accepted, you sign a purchase agreement and are now under contract.  An appraisal is to be completed to ensure the home’s value is worth the price that has been agreed upon before a lender will approve a loan.  Next, an underwriter from your lender will verify your qualifications and approve your lone.  Lastly, a home inspection should be completed to inform the buyer and ensure the buyer is aware of the true condition of the home.

Though not legally required, a home inspection is a necessary step to protect the buyer from committing to purchasing a home that has major defects.  You will want to look for a licensed home inspector, preferably a licensed P.E., or Professional Engineer, to complete your home inspection.  A home inspector will look at a house’s HVAC system, interior plumbing and electrical systems, roof, attic, floors, windows, doors, foundation, basement, and structural components.  Once complete, your inspector will then provide a written report with results.  It is strongly encouraged that the potential home buyer attends the inspection, as it will give you the opportunity to explore your new home and ask questions that can be answered by professional while they are on-site.  Once completed, review the report and look not at the number of defects listed on the report but the severity.  Once reviewed, discuss how to proceed with the home inspector and real estate agent.

The real estate closing, or settlement, is the final step in a real estate purchase transaction.  Property ownership is transferred from the seller to the buyer, funds are taken out of escrow and distributed to the seller, the buyer pays any remaining fees, and the new deed is registered in the buyer’s name.  It is also possible that there will be a final walkthrough of the property performed on the day of closing before the settlement commences.  The seller, lender, and buyer will likely all have legal counsel present at the closing.  In New York State, the buyer is usually required to be present to sign all applicable paperwork.  Once all paperwork is signed and fees are paid, the keys to the property are given to the buyer.  The buyer now officially owns the home.

Kick up your feet — you are now the proud owner of your dream home!