Adjustable Rate Mortgages – The Basics

An adjustable rate mortgage (ARM) has an interest rate that fluctuates periodically. This is in contrast to a fixed rate mortgage, which always has the same interest rate.

Every ARM has basic components:

1. An index
2. A margin
3. Adjustment Period
4. An interest rate cap
5. An initial interest rate

The Index

An ARM’s interest rate is tied to one of many economic indices, some examples of which are the 1-year constant maturity Treasury security, the Cost of Funds Index, or the London Interbank Offered Rate. Different indices move at different rates so know the characteristics of the index used for your ARM.

The Margin

The interest rate for your ARM will be calculated by adding a margin to the interest rate from the index. The margin is basically the markup charged by the lender that allows them to make a profit off of your loan, such as adding 2% to the index, where the 2% is the margin. The margin of your loan usually does not fluctuate.

The Adjustment Period

The Adjustment Period controls when and how often your interest rate changes. For example, if your ARM has an adjustment period of 1 year, your interest rate will be subject to change at the end of each year and your monthly mortgage payment will be recalculated to reflect this change. For business payment calculations use this tool.

The Interest Rate Cap

Interest rate caps are built into the loan to protect the borrower from drastic interest rate fluctuations. The caps limit how much the interest rate or monthly payment can change at the end of each adjustment period. An ARM can also have a cap for the life of the loan. For example, during the life of a loan, the interest rate can only be increased by 5%.

The Initial Interest Rate

The Initial Interest Rate is the interest rate that you start with at the beginning of your loan period. The length of time your loan stays at this rate is built into the loan. For example, you may stay at the initial interest rate for 1 year, 5 years, or another length of time depending on your specific mortgage. This type of ARM is generally referred to as a Hybrid ARM. The initial interest rate for an adjustable rate mortgage is generally lower than that of a fixed rate mortgage.

Home Buying: Building a Plan of Action

Buying a home will probably rank as one of the biggest personal investments one can make. Being organized and in control will contribute significantly to getting the best home deal possible with the least amount of stress. It’s important to anticipate the steps required to successfully achieve your housing goal and to build a plan of action that gets you there.

Before you can build a plan of action, take the time to lay the groundwork for your decision-making process.

First, ask yourself how much you can afford to pay for a home. If you’re not sure on the price range, find a lender and get pre-approved. Pre-approval will let you know how much you can afford, allowing you to look for homes in your price range. Getting pre-approved also helps you to alleviate some of the anxieties that come with home buying. You know exactly what you qualify for and at what rate, you know how large your monthly mortgage payments will be, and you know how much you will have for a down payment. Once you are pre-approved, you avoid the frustration of finding homes that you think are perfect, but are not in your price range.

Second, ask yourself where you want to live and what the best location for you and/or your family is. Things to consider:

• convenience for all family members
• proximity to work, school
• crime rate of neighborhood
• local transportation
• types of homes in neighborhood, for example condos, town homes, co-ops, newly constructed homes etc.

We are here for any of your home-buying questions. Don’t hesitate to call our office at (858)-755-4663 for more information!

Becoming A Homeowner As A Millennial

If you are stuck with student debt you may feel like you have a ball and chain attached to your foot and think you may never be able to afford a home.  A study showed that close to 70% of millennials are waiting to become homeowners due to their student debt.

A student loan is only part of your overall financial profile so it is unlikely that will affect your ability to get a mortgage.

You will want to have a handle on the debt you already have so you can see how much more you can reasonably take on.

The biggest impact on your monthly payments will be how much you put up for a down payment and the interest rate on the mortgage.  There are calculators offered by Zillow, Bankrate, and others to calculate mortgage payments and affordability.

Urban San Diego Condos

For many, an urban lifestyle is very appealing. In a city like San Diego, you can live  Quick access to the trendiest restaurants and bars, shorter commute to work, and the overwhelming excitement that an urban city has to offer. Here’s what to look for if purchasing a condo is in your future!

Amenities:

A  perk of owning a condo  is that the community often offers amenities that may be out of reach for most people. Look for a condo that offers residents a pool or fitness center to get the most out of your purchase!

Maintenance: 

While living in a condo, other people handle the maintenance for you. This is great news for anyone who works, travels, or just doesn’t feel like dealing with the work.

Homeowners Association Fees:

HOA fees vary widely depending on location and the quality of your condo. These fees cover the costs of amenities such as a gym, pool, and maintenance, as well as upkeep of the property.

Privacy:

A big benefit of owning a home is the privacy it gives you to do what you please. Some condominiums lack privacy due to the fact that walls, parking, and other common areas are shared with your neighbors. Consider factors such as noise and the number of residents in your building  to ensure peace and quiet around you.

Parking:

Most condo complexes offer residents at least 1 or 2 parking spaces, but it is important to consider your social life. Explore the area surrounding your complex so you can get a good idea if your friends and family will have easy access to on-street or off-street parking.

Commuting:

Living in an urban city can be a huge time saver on your commute to work. If you work downtown, there is the option of walking, or taking public transit. If you work in the suburbs, the odds are high that you will reach your destination quickly due to “reverse commute.”

 

 

 

An Insider’s Guide On Navigating Adjustable Rate Mortgages.

If you know what a Adjustable Rate Mortgage is, you also may be wondering what the advantages and disadvantages are. So let’s explore that issue.

Offering adjustable rates allows lenders to transfer part of the interest rate risk from themselves to the borrower. If you get a fixed rate mortgage and the interest rate then goes up, it costs the lender money. However, if you have an adjustable rate mortgage, as the interest rate goes up, so does your payment, thus compensating the lender. Adjustable rate mortgages are particularly useful when unpredictable interest rates make fixed rate loans hard to get.

One of the main advantages of an adjustable rate mortgage is that the initial interest rate is lower than that of a fixed rate mortgage. A lower rate means lower payments, which may help you qualify for a larger loan. This is an important detail if you expect your future earnings to rise. In this case, the ARM will allow you to qualify for a larger loan amount earlier rather than later.

However, this information should only be used with care. If you use an ARM to qualify for a larger loan amount than a fixed rate would allow you and the interest rate then rises drastically or your income doesn’t rise, you may not be able to afford the larger monthly payments, thus causing you to default on your loan.

A situation in which an adjustable rate mortgage makes sense would be if you are only going to keep the house for a short period of time. If you are only planning to own your house for only a few years, the risk of the interest rate rising goes down. This means that you will get a better rate with an ARM, making it a good choice. However, if you plan on staying in your home for a long period of time, a fixed rate may be a better option.

The lesson here is to have a plan. Know what your goals are in purchasing a home and plan for all eventualities. Do your research when shopping for an ARM and consider the worst-case scenario.

Deadly Homebuying Pitfalls

Buying a home is a huge deal for everyone. Unfortunately, there are many big mistakes and pitfalls that buyers often make. These mistakes complicate the home buying process and can cost you tons of money and time correcting the mistakes.

Many buyers get caught up in the excitement of purchasing a home and let their emotions make decisions, only to find out they missed an important step. This post will explore some of the biggest pitfalls buyers make when looking to purchase a home.

Deadly home buying pitfalls:

1 – Not Getting Proper and Professional Help

It’s important to remember that while you may be able to learn a lot about purchasing a home on the internet, it is impossible to learn everything. Real estate is a constantly evolving market and something you read just last year could now be useless.

There are many aspects of purchasing a house that buyers don’t even know exist. From the buyers and sellers agent, to appraisers,to inspectors, to attorneys and mortgage bankers. Each one of those jobs have professionals that perform those tasks 8 hours a day, every day of the year, and have perfected the profession. Trying to save a few hundred dollars by skipping out on an inspection or attorneys is foolish and almost always returns to haunt you.

2 – Not Getting Pre-Qualified Before Looking at Homes

Most people enjoy looking at new homes, but do not enjoy talking about the money aspect. Obtaining a proper pre-approval will save you tons of stress later in the process.

Getting a proper pre-approval allows you to know exactly how much money you are capable of spending on a house and helps you narrow down the market to what you can afford. Additionally, some buyers are able to use their pre-approval as a negotiating tool to help get the price down.

3 – Thinking Too Short Term And Ignoring The Long Term

When looking to purchase a home people tend to think about the next 4-5 years of their life, instead of the next 8-10, which is where they should be thinking. Yes, 5 years is a long time and a lot can change from job and marital status to children, but selling your home does have a cost. If the market does not appreciate quick enough you can stand to not get your moneys worth from the original purchase.

Obviously there are many circumstances that no body is able to predict, but spending time thinking through just some of the basic scenarios can save you a lot of trouble in the long run.

4 – Not Understanding The Full Costs Involved

There are many costs involved with purchasing a home that many buyers don’t realize. It is not just pay the listing price and it is yours. There is inspection costs, moving costs, closing costs, escrows, and more. Professionals can explain and walk you through all these extra costs, ensuring there are no surprises at the very end.

5 – Not Understanding Fair Market Value

One of the biggest issues when buying a house is buyers not understanding the market price of a home. People get caught up with what their parents think it should cost, or what you can afford in total, or with personal opinions about the price of a home which often is far different than the market value. There is a very organized process to determine the market price of a home that involves reviewing similar comparable homes that sold within the nearby vicinity.

It is important to know what the market value is because a house can be listed over, under, or exactly at market price. Being able to recognize the difference between the listing price and the market price can save you lots of stress and money and help you formulate a concrete offer.

 

 

 

Moving Guide

No one ever said moving was easy. The process of gathering all of your things typically involves far more things than you realized you ever had, and transferring them from one place to another is difficult at the best of times. The work is substantial and is rarely something that can be done quickly. However, there are ways to make your move a bit easier.

 

General Tips:

1. Reduce your possessions-

Depending on how long you have lived in your home, you may have accumulated a substantial amount of items. Not all of these items are going to be important, useful, or otherwise necessary to bring with you to your new place. By taking the time to go through your stuff and clear out the clutter, you can reduce the number and volume of things that you have to pack. To make this easy, you can break it down by room or even on a smaller level like closets and areas with different functions: office, kitchen, bathroom, etc. Go through each area and create four piles: donation, sell, keep and throw away.

2. Get packing supplies-

Boxes, bags, tape, bubble wrap, paper, scissors, box cutters, blankets, etc. What you gather will depend on what you need to move. Just keep in mind that once you get going with the actual packing you don’t want to waste time finding more packing materials. Most of this stuff is cheap and it is better to have too much than too little. Going from task to task efficiently, de-cluttering, gather packing materials, packing, moving, etc., will help you avoid frustration and keep up your momentum.

3. Create an inventory list-

You do not need to list every single thing you own but having a list of your most valuable possessions is important. This becomes important not so much for the packing part of your move, but when you are ready to unpack.

4. Consider what you will need most-

You don’t want to pack everything just based on where it is in your house. There are some things that you will need sooner than others once you arrive in your new home. Things like your most used kitchen supplies, bathroom supplies, food, computer and medicine may all be things you want quick access to. Set aside some boxes for essentials, things to unpack first, and fill them with the appropriate items.

5. Pack the items you will need FIRST in a clear plastic bin-

This tip correlates with tip #4. Things to pack first includes items like a box cutter, paper towels, trash bags, eating utensils, select cookware, power strips, phone chargers, toilet paper, tools, etc. The clear bin allows you to see inside for easy access; it also separates itself from the myriad of cardboard boxes.

6. Follow packing protocol- 

There is a right way to pack a box. Heavier items go on the bottom with medium weight and lighter weight following as you would expect. If the items are important to you it is best to wrap them individually, as they will shift around and cause wear on each other. Fill the empty space, both on the bottom and at the top, to keep the items in place as much as possible. Both packing peanuts and paper can be used for this purpose.

7. Label your boxes-

Label each box with what it contains and where it should go. The more detailed your label is the easier it will be to find what you are looking for. Again, you will probably not unpack everything the first day. The easier it is to find out what is in each box the easier your life will be after the move. Also make sure that labels are found on all sides of the box, because not every box will be placed upright as it’s unloaded off of the truck.

8. Take pictures-

One of the things that can be a dread for everyone about moving is putting all of their electronics back together. One of the best ways to help make setting everything back up again easier is to take pictures of what it looks like before dismantling it! Having a reference of something to look at will make this process far less cumbersome.

9. Pack an overnight bag containing all the essentials-

Chances are, you’ll be too tired to unpack your things. You’ll want your essentials within easy access, including a change of clothes if you’re going back to work the next day as well as all your toiletries. It’s also a great way to transport a laptop, which could run the risk of getting stolen during a move.

10. Show up to your new home before the move and pre-clean the bathroom and kitchen-

If you can, put up a new shower curtain liner and stock some new bath towels and toilet paper, as well. You’ll want an already clean bathroom and to take a hot shower after a long day of moving.

11. Address your toiletries-

Cover the openings of your toiletries with saran wrap, then put the tops back on. This will keep your toiletries from breaking and leaking all over your stuff during the move.

12. Plates-

Pack plates vertically, like records. They’ll be less likely to break.

13. Dresser Drawers-

Keep drawers intact to the their dresser by covering and wrapping them with saran wrap. Dresser drawers are like their own moving boxes, this will keep you from having to unpack and refold their contents. It’ll also make moving the actual dresser much more manageable.

14. Packing your closet-

There is an easy way to pack your closet. Keeping the clothes on the hanger, push about 30-35 items as close together as possible. Then, starting from the bottom, take a trash bag and bring it up around the cloths. This will keep your clothes together and make it easy to put them back on the rack all at once.

15. Finish packing before friends help-

Make sure everything is completely packed before your friends show up to help you move. Don’t be that horrible person who makes everyone wait around/help you pack. Also, if you have enough people, split them up into shifts, one set to help you move in the morning, and another to help you move when you get to your new home.

16. Hire movers for fragile objects- 

If you have a lot of fragile valuables, hiring movers as opposed to asking friends can end up paying for itself. Many movers come with insurance, which means if something breaks, they have to compensate you. You might want to weigh the pros and cons though, they won’t want to be responsible for a television that is not properly packed in its original box and could end up charging you upward of $150 to pack it as they see fit. Also remember to book them weeks in advance, as you’re probably not the only person trying to get out of your space on the last day of the month.

17. Wacky Rules-

Going along with tip #16, if you do hire movers, be sure to read the fine print and find out if they have any weird rules. For instance, some movers will only move things in boxes, not garbage bags. Which means you’ll be paying them extra for unnecessary boxes at a marked-up price.

18. Take pictures before moving in and out-

If you’re renting, take photos of your cleaned-out old home and your new home before moving in. This is essential if you ever hope to get your deposit back. It will save you major headaches with difficult landlords who charge you cleaning and repair fees unnecessarily when moving out.

19. Changing your address-

Change your address at least two weeks prior to moving. This might seem like a no-brainer for important things like utilities and cable, but don’t forget the small stuff. You’ve also got Amazon, PayPal, credit cards, your bank, magazine subscriptions, and your mail to worry about.

20. Shipping cross-country-

If you’re doing a cross-country move and you don’t need your stuff immediately, consider shipping via Greyhound. It’s an inexpensive shipping option for large items. Just remember to pack your stuff really well because your boxes WILL get a little beat up along the way.

 

How to Save For a House

Saving for a down payment may be the most daunting step to buying a home. It takes time, patience, and for most, a lifestyle change. These simple tricks will help you buckle down on your savings and turn your dream of buying a home into a reality.

Cut Unnecessary Spending

Thankfully, saving up for a mortgage doesn’t have to be as grueling as your ramen-eating college days! A great way to cut costs and begin saving is to pin point money siphons that you barely notice. For example…

• Nix your cable and stick to an online streaming service such as Netflix or Hulu!
• Start cooking meals at home, and cut back on eating or drinking out to 1 time per week. Your bank account and waist line will thank you!
• Utilize all the beauty that San Diego has to offer by canceling your fitness membership and bringing your exercise outside.
• Gas usually isn’t cheap in San Diego. Plan errands, work, and leisurely activities accordingly to make the most of each tank of gas.
• Take advantage of SDG&E Reduce Your Use days! You can earn rewards toward your monthly bill by saving energy! Learn more about the program here.
• Save your loose change and turn them into cash at the bank or with Coinstar! Coinstar charges a fee for turning your loose change into cash, but if you choose a gift card, you can hang onto all your money! Pick a gift card to Amazon or a grocery store you normally shop at to put your saved money back into something you already need, rather than choosing a gift card to a clothing store or restaurant.

Open a Savings account

When it comes to saving money, opening a savings account can be very beneficial. You will earn interest on your money and can easily track how you are progressing towards your goal. Make sure to set up a recurring transfer from another account (for example, the one where you put your paycheck) to your savings. This is a great way to ensure you’re setting aside a little bit of each paycheck without having to think about it. If the money’s not available, you won’t spend it. Saving a small amount of the money you earn every month can really add up over time if you are consistent with your efforts!

Get the Most Out of Your Credit Card

To qualify for a mortgage, you need to have credit. A credit card allows you to build good credit, but did you also know it can help you save money? Before opening a credit card, make sure you thoroughly research their rewards program-many will give you cash back on everyday purchases like gas and groceries! Apply these cashback rewards to your credit card bill to make the most out of your card! Just be sure you pay your credit card on time, pay more than the monthly minimum, and watch out for annual fees.

Get Help!

If this is will be your first time buying a home, you can take advantage of the FHA loan program to pay a lesser down payment. You may still have to pay PMI (Private Mortgage Insurance), but depending on your situation, putting less than 20% down on a home may be the smart choice.

If you or your spouse have ever served in the military, you will want to check out the VA and CAL-VET loan programs.

You may also be eligible for down payment assistance programs.  The programs usually provide help to people below the area median in the form of a low interest loan or grant. If you have a higher income, do your research! Certain programs also offer assistance for higher-income households. Visit DownPaymentResource.com to see available resources in San Diego.

Finally, your most important resource to help you save for a down payment and determine your mortgage eligibility is to meet with a lender. They will be able to look at your situation, determine where you are, and give you advice to get where you need to be to purchase your San Diego dream home!

We can help you become a San Diego homeowner! Our agents have helped thousands of people become home owners – contact us today to get started!

6 Reasons Why You Still Need A Realtor

Many industries have been disrupted and even sometimes replaced by the rise of new and innovative technology. Uber has all, but replaced taxis. AirBnB is used just as often as hotels. Expedia and other similar sites made travel agents a thing of the past. And the list goes on.

Some people have predicted that it would only be a matter of time before this paradigm shift would make its way into the world of Real Estate. On the surface, it seems that the internet would have caused Realtors to go the way of the travel agent. But when we dig deeper, we see that the real estate agent is a much more immovable force. Although the role of the Realtor has certainly shifted in the face of many challengers, here are a few reasons why you should still use a Realtor to buy or sell your home.

1. Your Realtor Works For You

Simply put, your real estate agent works for you as a full-time liaison to help you accomplish your goals. If you’re selling a home, they can respond to any call or inquiry regarding your home instantly. People will move on very quickly if they are having difficulty seeing a home, particularly in markets where many similar homes are for sale. Your Realtor’s job is to be ready and available to field these calls. If you’re buying a home, your Realtor is busy reviewing new listings that fit your search criteria and networking with other agents to find properties that haven’t hit the market yet.

2. Your Realtor Negotiates on Your Behalf

If you’re selling your home, although you are paying commission, using a Realtor usually nets you more money in the end. They are trained, expert negotiators and work hard to make sure your interests are well represented in the deal. Their professionalism and code of ethics allows them to present your needs in a way that makes sense to the buyer and the buyer’s agent. Negotiating can be a long process and it pays off to have a professional on your side.

The same holds true if you’re a buyer, but with one, awesome caveat: using a Realtor doesn’t cost you anything!

3. Your Realtor Helps You Navigate the Contracts

Needless to say, contracts can be confusing to those who don’t deal with them on a regular basis. It can be hard to navigate the legalese. Your Realtor not only knows what paperwork needs to be completed, they also know how to read the contracts and ensure that you’re not signing off on something you could regret. Paying for this piece of mind is often worth the cost.

4. Your Realtor Has a Fiduciary Responsibility to You

Realtors have fiduciary responsibility, meaning that they are bound by law to act in their client’s (your) best interest. For most people, your home is your largest financial transaction. Great care should be taken with the process of buying or selling a home and your Realtor is bound by law to serve as your trusted advisor.

5. Your Realtor Saves You Money

Many people’s main motivation for forgoing an agent and trying to do it themselves is to save money by not paying an agent’s commission. If you’re a buyer, your agent’s commission is paid by the seller. If you’re a seller, using a Realtor nets you more money in the end by helping you negotiate with the buyer. On both sides, your Realtor ensures the contract you sign most likely won’t turn into a headache down the road. By doing it yourself, you may end up going to court with the other party later on, an expense and headache that could have been avoided by using a trained professional in the first place.

6. Your Realtor is Your Consultant

With so much information about the real estate market online, your Realtor is extremely valuable to you in other ways. They have the pulse of the neighborhood. They know what’s happening with schools and businesses. They have great recommendations for local restaurants. As Realtors, they also have access to quality contractor referrals right at their fingertips. Need a painter? No problem. Looking for a pool guy to take care of your new saltwater spa? Consider it done. Whatever your need, your Realtor can point you in the right direction. They’re your own personal Yelp!

Overall, although some people COULD sell or buy their own home, your home usually represents your largest financial transaction and is rarely worth the time and effort to handle it yourself.

What You Actually Need to Buy a Home in San Diego

Have San Diego’s perfect weather, delicious Mexican food, beautiful beaches, and amazing sunsets convinced you to stay? Are you dreaming about buying a home in sunny San Diego? These eight steps will help make that dream a reality!

 

 

Step 1: Become Familiar With The Real Estate Market

According to an April 2016 article from Time Magazine, San Diego is predicted to be one of the hottest real estate markets over the next five years. Home prices are expected to increase modestly over the next few years. Low inventory has us in a competitive seller’s market, meaning that buyer’s have to compete for the few available homes, especially in the entry-level price ranges.

 

Step 2: Build Strong Credit

Simply put, the better your credit, the better rate you’ll get on your mortgage. A great credit score is evidence that you are a “good investment” for the bank.

If your credit is less than stellar, you will want to work to improve it.

• Pay your bills on time.
• Don’t take out more credit cards than you need.
• Don’t max out your available credit on the cards you do have each month.
• Pay down credit card debt.
• Check your credit report for inaccuracies and get them corrected.
• Raise your credit line when able. This increases your debt-to-credit-limit ratio.

 

Step 3: Save for a Down Payment

Very few people have enough cash to buy their first home without a mortgage. Most need financing to afford today’s home prices. But there are many different mortgage programs out there. As a first-time home buyer you can buy a home with less than the standard 20% down, sometimes as low as 3.5-4% down, but you may have to pay Private Mortgage Insurance (PMI) to the lender on top of your mortgage. For some people, that will require a budget adjustment or to wait until they can save up for a larger down payment. There are many different affordability calculators online that can help to determine an individual budget more closely. You can take a look at ours here, which will give you a rough idea of what you can afford.

 

Step 4. Choose a Real Estate Agent

Who you work with matters. Not only is it important to select an agent who is knowledgeable in the area(s) you wish to buy in, but you also want to choose someone whom you trust and who makes you feel comfortable. In most cases, your home purchase will be your largest purchase to date. When selecting a real estate agent, you’re also picking someone who will be the custodian of that transaction. You will want to interview a few agents to determine who is your best fit. Ask the agents you’re interviewing if they have reviews from buyers like yourself and/or if they can provide you with a list of their past clients. Nobody knows a real estate agent better than the people who have hired them!

At Coastal Premier Properties, we will hand-pick an agent that will be a great match for you and your real estate needs.

 

Step 5: Research & Get Pre-Approved for a Loan

Your real estate agent can point you in the direction of some great lenders who can look at your finances and determine how much home you can afford. Not every mortgage program is the same, so it’s important to talk to a few different people and look at different programs and loan types before deciding what will be best for you.

Your lender will provide you with a Pre-Approval Letter, which is key to getting a home in a challenging market place. The letter is a note that states how much home you can afford. When sellers are choosing between competing buyers, having that Pre-Approval Letter is an extra assurance that you are a legitimate buyer and if they go into escrow with you, that you have the funds to purchase their home.

 

Step 6: Narrow Down Your Search

Now that you know how much horse your can afford, where do you want to buy? Explore different neighborhoods and find the one that best fits your needs. Explore shops and dining, research commute and traffic information, look up pictures of houses in the area, and see which one feels like your perfect fit! What kind of house do you want? Create a wish list of your wants and needs for your future home. List the amount of bedrooms and bathrooms you want, a preferred house style, ideal yard size, or any specific property features you are looking for.

 

Step 7: Begin Viewing Properties

This is the fun part! Start viewing properties that fit your criteria. See what’s available! Your ideal choice may change during this process, as you explore the different options and see the market up close. Take your time and look at as many options as you want! Buying a house is a big decision, so you want to be well informed on what is available.

 

Step 8: Put Together an Offer and Buy That House!

Once you have decided on your dream home, you will need to put together an offer. Your agent will help you come up with the best offer strategy. Try to look at recently sold houses in the same neighborhood that are comparable to the one you’re looking to purchase for an idea of the price you will need to pay. Once an offer is accepted, the contract will be drawn up, and after the closing date comes, that dream house will be yours!