Buying a home is not easy – especially in Silicon Valley. A recent video from Realtor.com explains the ‘4 Habits of Successful Home Buyers’ and we have adapted them according to our own market needs and conditions. Below you will find the original feedback and then our Homes of Silicon Valley commentary below.
#1: Ditch an indulgence or two. While it’s true that canceling a cable service or hitting the coffee shop a little less can always help your budget, it would be unrealistic to assume that 3 less lattes a week is going to make up for your down payment in a year or two. However, creating a budget with realistic 'fun money' can help you prepare for home expenses that will come into play when you are a homeowner. As far as that down payment goes, it’s best to work with your financial advisor & trusted mortgage officer (let us know if you need one!) to weigh various options. In addition, homebuyer assistance may be available for low- and moderate-income first-time homebuyers. The City of San Jose provides some information here. Let us know if you want to chat about the ways in which our recent buyers have strategized getting into their first or next home.
#2: Make a separate savings account. This is great advice for any major purchase including a home! Having that separate account to see those funds for your goals accrue is a great motivating factor and makes it easy to deposit employer bonuses and gift funds directly into an earmarked fund.
#3: Take a test run of homeownership: Once you’ve worked with a trusted mortgage advisor and know what your mortgage payment, property taxes, insurance and HOA dues (if applicable) would be – practice living within that budget for a few months. What would you do if you had an unexpected car expense? Can you still make ends meet if a home repair comes up? How that budget feels may help you determine if you want to scale back your purchase price or work on increasing your savings or down payment.
#4: Keep track of your credit score. Not only is it important to know what your credit score is and how it impacts your rate and payment – but knowing what it takes to keep it the same or even increase it. There are even a specific set of guidelines that borrowers need to follow once prequalifying for a mortgage – such as accruing new debt, decreasing income, juggling job changes and facing other events that can impact your qualifying criteria. While opportunity knocks here in Silicon Valley and a job change is not a deal breaker, the gap between jobs, the change (or not) in title and such can play a role in how a lender views an employment move.
Homes of Silicon Valley has 25+ years of experience in helping our clients navigate their home buying goals amidst their professional careers. We love seeing how our clients’ lives evolve and how real estate plays a role in making it happen. That is especially important now as many buyers hope to get into the market before rates rise further.
Homes of Silicon Valley would like to acknowledge that buying a home is not easy and that sometimes the data out there can over-simplify what it really takes. Please reach out to us at any time for a realistic, compassionate and data-based approach. We don’t view housing goals in a tunnel; we do see them as opportunities to challenge and change us all for the better. Life is good, home can make it better!