» Buyers Tips

Getting Started

Before you start looking for a home you should ask yourself a few questions. Where do you want to live? Do you want to be close to schools, shopping, or work? What kind of house would you like (need)? are you looking for a particular style? How many bedrooms and bathrooms do you want? Do you want a yard? How much house can you afford? Have you consulted a Realtor or mortgage lender to determine the size of the mortgage you would qualify for?
Here are a few tips to help you get organized:

• Call Southwest Funding Mortgage Loans locate right here in our building for you convenience at 8096-358-2200 for a mortgage loan. You'll find out the maximum house payment you can qualify for and whether you need to addr3ss any credit issues or mistakes on your credit history. Southwest Funding Mortgage Loans may also qualify you for one of the many down payment assistant programs.
• Browse through real estate advertisements in the newspaper and The Real Estate Book at local supermarkets and convenience stores. This will give you a good feel for the types of homes that are on the market and what they cost.
• Check ActionRealtyGroup.com often for new listings that meet your search criteria. The site is updated in real-time as new properties come on the market, with over 1,200 homes to choose from.
• 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 etc. later.
• Contact an Action Realty Group Associate at one of our Texas offices in Amarillo or the Hereford area. Your Realtor can help you determine how much you can afford, and they can provide you with information on homes that may interest you. The Sales Associate will also help you complete all the necessary forms when it comes time to make an offer. Our offices not only can assist you in the Amarillo and Hereford areas but also help you throughout the entire Texas Panhandle.

Why you should work with a Realtor

Working with a professional Realtor to buy your home is a good idea for several reasons:

• They'll analyze your financial situation to help you determine how much you can afford.
• They're familiar with the process of buying a home and can explain things to you.
• They can easily access information on all properties listed for sale by Realtors in your area.
• They can set up appointments for you to see homes that interest you.
• They'll help you complete all the necessary paperwork when it comes time to make an offer.
• They'll help you arrange financing.
• They'll be there at closing to answer you questions and make sure everything runs smoothly.

How much house can you afford?

Simply put, you can afford a house that costs as much as the largest monthly mortgage payment you qualify for. A quick way to estimate the size of mortgage you 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 quality ratios to determine how much they'll lend you. Most mortgage companies use either a 28/36 ration or a 29/41 ratio. The first number in each pair is the percentage of your gross income that the lender would consider acceptable as a monthly 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). As you can see, in this example the numbers work out to be almost the same. Obviously if you have more debt you would qualify for less.

Choosing A Realtor

Searching for your dream home can be a time consuming experience. Working with a professional Realtor will make the process much more efficient. Since most people spend a fair amount of time with their Realtor, it's important to choose a Realtor you feel comfortable with, and one who is responsive to your needs. The following questions will help you decide if a particular Realtor is right for you:

• Do they return your phone calls?
• Do they ask you questions to determine what you want/need in a house?
• Do they perform a financial analysis to help you determine how much you can afford?
• Do they explain things clearly?
• Do they suggest financing methods?
• Do they seem knowledgeable about the community?
• Do you feel comfortable spending time with them?

If the answer to most of these questions is "Yes" - you've found yourself a great Realtor.