Purchasing a home can be very stressful. First, you need to find the right condo that you can afford in the town you would like to live in. Then you need to find a condo that has the amenities that you need with reasonable condo fees. It can be quite overwhelming. Fortunately, you have taken care of a lot of the stress already by deciding that you are buying a condo at Ocean Edge. The amenities are second to none, and there are so many different condo layouts to choose from, you can’t go wrong! Brewster is centrally located on Cape Cod, so you can not beat the location. You have made a wise decision when you decided that you are going to be buying a condo at Ocean Edge in Brewster!
Pre-Approval
Before you obtain financing for your mortgage, many financial institutions are insisting upon a letter of pre-approval in order to consider you for a mortgage product. Obtaining pre-approval in advance almost guarantees that you will be approved for a mortgage from a lender. Finding the perfect Ocean Edge condo, doing your research and not going ahead and getting pre-approved before applying for a mortgage with a lender could result in heartache for you as the buyer. Do yourself a favor and go for the pre-approval in the very beginning of your condo search for piece of mind and make financing through a mortgage lender a breeze.
Cost
It is vital that you understand what it is going to cost you to buy your condominium before you even begin the purchasing process. This means understanding what you are expected to bring with you to the closing of your condo as well as what it is going to cost you every month to own your property. Before closing on your property, you need to decide whether you will come up with closing fees, have the owner cover the closing fees you accumulate, or if you are going to roll them into your mortgage payment. To find out what fees you can expect at closing, check out our blog “Hidden Costs of Buying a Home.”
There are 5 components that make up your monthly housing bill. These 5 components are: principal, interest, taxes, insurance and condo fees. The principal is the money that is coming off of your selling price. The interest is the interest on your loan that you are paying off. The taxes are your assessed property tax and the insurance is your home owners insurance. The condo fee takes care of the exterior of the property (including landscape) and your membership package (if you choose to purchase one through Ocean Edge). It is important that you also figure in that you are going to be paying for monthly utilities. Ask your realtor to ask the current owners to give you an idea of what their utilities were during the summer and winter months so that you have an idea of what you could spend on your utilities.
Credit
Credit is a vital part of your ability to secure financing from a mortgage lender to buy your home. Mortgage lenders have strict guidelines you must fall into in order for you to qualify for different mortgage products with their institutions. This is why it is so important to have a handle on your credit before you start the house buying process. There are free apps and websites, such as Credit Karma that give you an estimated credit score so you can see what your credit score is at any time. Any changes that occur to your credit such as starting a new job, closing a credit card or a late payment will negatively impact your credit score, which could jeopardize your financing and ultimately buying a condo at Ocean Edge. For more tips on how to build your credit, check out our blog “Clean Up Your Credit Score Before You Buy.”
Budget & Timeline
Before you begin the process of buying, it is important to ask yourself what your personal timeline is for buying a house. Are you in a rush to find something right away because you just sold your home or is your rental lease ending soon? Maybe you’re staying with family while you look for a house, or have a month to month lease that is more flexible and allows you to take your time in searching for the perfect house.
Your personal timeline plays into budgeting for your home. Keep in mind that you are potentially signing a 30 year fixed mortgage, so how long are you planning on living in your new home? Since you have already budgeted for your mortgage payments, condo fees and other monthly expenses, you should have an idea of what to set aside every month to pay your bills. As long as you do not see your finances changing for the time that you plan on spending in your home, home ownership should be a breeze.
Prepare Paperwork
Every lender is different. Make sure you have all of the information you need when you meet with the financial institution to sign on the dotted line. Some examples of paperwork that you might need to bring with you is: divorce paperwork, birth certificates, bank statements, pay stubs, etc. Make sure you find out ahead of time what you will need, as some of the paperwork may take time to collect.
Buying a Condo at Ocean Edge
Buying a home is stressful for anyone. However, if you are prepared for what is ahead, you can limit your stress if you know what to expect when buying a condo at Ocean Edge. Start keeping track of your credit score, secure pre-approval and obtain vital paperwork for your lender as soon as you decide you are ready to make the leap into home ownership. If you are currently renting and are unsure as to how to make the transition from renter to home owner, check out our blog “Renter to Homeowner: How to Make the Leap.”
