Get Your Finances in Order

Published On: May 30th, 2020

Before you even begin searching Silicon Valley homes listed for sale or multi-family homes for sale online, make sure your finances are in order. This will most likely be the biggest purchase of your life, so you must cover all your bases.

Examine your current financial situation and think about how it may change in the future. Get a handle on how much you make, spend, and save each month so you can be prepared to pay for:

The down payment
Closing costs, which you pay at the final stage of a real estate transaction
Moving expenses
Property taxes, pro-rated based upon the closing date
Lender fees paid in the form of points on your loan or mortgage
Homeowners or property Insurance
Property inspections
Any unexpected future repairs

What About Your Credit?

You should review your credit report periodically – and doing so is even more important when you’re buying a home or property. In order to qualify for a mortgage (and one at more competitive interest rates), you’ll need a good credit history (and score). You should NOT to make any major purchases prior to buying a home or property, such as a new car or boat. This will affect your credit score and could negatively impact your mortgage application.

Thanks to the Federal Trade Commission, you’re entitled to one free copy of your credit report from each of the three major agencies (Experian, TransUnion and Equifax) each year. You can get yours here.

Do You Need a 20 Percent Down Payment?

You don’t always need a 20 percent down payment to buy a home or property. There are several loan products available that let you buy a property with as little as 3.5 percent down (FHA)– and even some that let you buy with nothing down, such as VA loans. However, with most investment properties you will need 25-30% down to make it work.

Ready to Talk About Your Next Home or Investment Property?

If you’re ready to buy an investment property or home in Silicon Valley, we’re here to help. Simply click here to set an appointment now to talk about your needs – we’ll help you find your perfect investment property or dream house!