4. Be prepared.
Make sure your contract has reasonable contingencies included to protect you as a buyer. Reasonable can be things like approval by a home inspector, and title clearance.
For the long-term investment, make sure that you buy homeowner’s insurance, and upgrade it as the value of your new home and its contents increase.
5. Be reasonable.
No home will be without flaws. Many times it’s these flaws that lend character to older homes, but nonetheless, it will take SOME work to personalize any home.
Preparing yourself with these five simple things – loan pre-approval, a great broker, getting to know the neighborhood, protecting yourself, and being reasonable – will help make the home buying process easier for you and your family.
Four Important Questions To Ask Your Mortgage Lender Before You Sign Any Of Their Documents...
1. Do you have a variety of loan programs to fit my cash flow and expected length of ownership needs?
If you’re going to live in your new home for less than five years, you may want to consider an adjustable rate mortgage or “ARM.”
With an ARM your payments will be lower, but they will go up according to the terms of the loan.
If you’re going to live in your new home for over five years, a traditional fixed-rate mortgage may be a better plan.
2. Do you offer written mortgage pre-approvals, not just pre-qualifications?
A “pre-qualification” is usually a Lender’s opinion of your eligibility for a loan. If you ask to be pre-approved, the Lender will actually submit your job and credit history to an underwriter and get a conditional approval for a loan and a loan commitment.
The advantage of having a pre-approval is that it will make your offer to buy a home stronger and it will usually allow you to close on the home faster.
3. Do you have the ability to handle difficult credit history?
Many Lenders will only work with you if you have perfect credit, and if a problem comes up, they won’t help you.
Make sure your Lender has reviewed and received approval for you and your specific credit history.
4. Is the rate that you quoted me the rate I will get at closing?
Many Lenders advertise their rates in the paper and in homes magazines. These are what are called “Teaser Rates” in the industry. The name says it all.
After they’ve got you committed to using them, many Lenders then tell you what the “real” rate will be. By this time, it’s too late for you to do anything about it.
Make The Home Buying Process Easier (Part1)
In reality, there are only five things you need to know and do to make your home buying experience as simple as possible.
1. Get pre-approved for your loan.
If possible, get “pre-approved” for a loan in the amount you’re willing to borrow.
With this pre-approval, you’re in a stronger position to buy a home when you’re ready – rather than finding your dream home, only to lose it to another buyer because you were waiting on the approval.
2. Find a great real estate consultant.
Once you’ve decided to buy a home, find a great real estate consultant. What you’re looking for is a Buyer’s Agent.
Drive around the neighborhood at different times of day. Get out and walk around and chat with neighbors. Some people like friendly neighbors, others think of them as nosy.
Drive to the local grocery store, laundry, anywhere that you frequent.Visit nearby schools and see for yourself how the kids behave and how the grounds look. The point is to see if this is really the type of neighborhood you want to live in BEFORE you make an offer. - Part 2 on Friday
1. Get pre-approved for your loan.
If possible, get “pre-approved” for a loan in the amount you’re willing to borrow.
With this pre-approval, you’re in a stronger position to buy a home when you’re ready – rather than finding your dream home, only to lose it to another buyer because you were waiting on the approval.
2. Find a great real estate consultant.
Once you’ve decided to buy a home, find a great real estate consultant. What you’re looking for is a Buyer’s Agent.
This means that the consultant represents YOU as the buyer, rather than the person selling the home.
They will have YOUR best interests at heart. Really good consultants know their markets, and will help you find the best match for your needs and wants.
They can also recommend mortgage brokers with whom they’ve worked in the past.
3. Look before you leap.
They will have YOUR best interests at heart. Really good consultants know their markets, and will help you find the best match for your needs and wants.
They can also recommend mortgage brokers with whom they’ve worked in the past.
3. Look before you leap.
Drive around the neighborhood at different times of day. Get out and walk around and chat with neighbors. Some people like friendly neighbors, others think of them as nosy.
Drive to the local grocery store, laundry, anywhere that you frequent.Visit nearby schools and see for yourself how the kids behave and how the grounds look. The point is to see if this is really the type of neighborhood you want to live in BEFORE you make an offer. - Part 2 on Friday
More Than Money: Rent vs. Buy A Home
While being a homeowner is the quintessential American dream, finding the right time to buy can be a challenge. Owning a home is likely the largest investment a person makes in their lifetime. Performing a "Rent vs. Buy" analysis looks at not only the financial factors involved, but the overall value of home ownership versus renting.
With so many factors going into a home purchase: finances, lifestyle, employment and personal goals, it's critical to run the necessary due diligence. Every potential homeowner should run a buying versus renting analysis to determine if the time to buy is now, or if renting is a more prudent decision. Here are the factors to consider when running a buy versus rent analysis:
Can You Afford It? A Cost Comparison
This question is a bit more complex that it might seem. Often, potential buyers stack the mortgage payment alongside the monthly rent and consider the comparison complete. There are also some overlooked costs associated with home ownership. Financing, homeowner fees, property taxes, repairs and maintenance can add up quickly. On the other hand, mortgage interest on both first and second homes are tax-deductible which make homeownership one of the best ways to trim your tax bill.
In today's market, shopping around for a competitive interest rate is necessary for solid financing that works with your budget. What you can afford will be greatly impacted by how much money you can borrow, and at what rate you are borrowing. One thing to keep in mind is that like most markets, the mortgage market is very dynamic.
Good credit and a low debt to income ratio will help to secure a lower rate and make the cost of borrowing less in the long run. A good mortgage broker or loan officer can be a great help to a prospective borrower. If a borrower is financially savvy, they could also shop around for the best rates themselves. Anyone with a less than stellar FICO score (680-700 and above is generally considered excellent) could be lumped into what is known as the sub prime mortgage category. If they cannot provide full documentation of their income and/or assets, and have less than stellar credit, then they will almost certainly be categorized as sub prime. First time home buyers sometimes fall in because they haven't established credit. People with existing mortgages who have had late mortgage payments in the past or a bankruptcy might also be sub prime. The easiest way for someone to find out where they stand, in regards to credit, is to run a credit report. There are many different services on the web where this can be done for free, or consult a mortgage broker who can run a credit report and advise accordingly.
Not all types of property are created equal. Condominiums, townhomes and other complex-style dwellings often carry homeowner dues that ranges anywhere from under $100.00 to several hundred dollars a month. These fees are imposed by the homeowner's association for upkeep on common grounds, gym, pool and laundry facilities and other community maintenance. Knowing these fees and what they include is essential to the final assessment of your monthly payment.
Property taxes too are a factor in determining what your monthly payment as a homeowner will be. (Often, loans will have an automated escrow account within the loan which will raise the monthly mortgage, but make this bi-yearly bill automatically accounted for.) Taxes are determined by type of property, property value and location. in your area is the first step.
One of the least considered factors in homeownership is both financial and emotional: the cost of repairs and maintenance. Bad wiring, plumbing, termites, shifted foundation: these are all the bane of a new homeowner's existence. Having a reputable housing inspector go over a prospective property can assist in determining the quality of the structure and help assess the need for repairs. Other overlooked costs include closing costs, which are usually about 1% of the total property value.
Regardless of these costs, it may be advantageous to buy versus to rent, depending on the rate of increase on your rent annually. If rent increases at 5% per year the inflation might overrun a mortgage and its associated costs.
Homeownership
For many, buying a place to call your own is the ultimate financial goal. The non financial value and personal sense of community a homeowner wins is a certain type of satisfaction. There too, are tangible freedoms such as the ability to change the decor or the structure of your home without a landlord's prior approval.
The actual value of non-financial factors will vary greatly. Lifestyle and personal preference will weight heavy in deciding not only when the right time to buy is, but also what type of property. Family size, occupation, need for security: these are all tangible factors that weigh into the final decision of buying versus renting.
There are still, other considerations. As a homeowner, you are your own landlord. Repairs, maintenance and community issues are all the responsibility of the homeowner. If you are someone who prefers less responsibility and greater ease to move, buying investment property rather than a home to live in might be a better choice.
Regardless Of The Final Decision, It Is Important To Carefully Examine Your Options When Looking At Buying Or Renting A Home.
With so many factors going into a home purchase: finances, lifestyle, employment and personal goals, it's critical to run the necessary due diligence. Every potential homeowner should run a buying versus renting analysis to determine if the time to buy is now, or if renting is a more prudent decision. Here are the factors to consider when running a buy versus rent analysis:
Can You Afford It? A Cost Comparison
This question is a bit more complex that it might seem. Often, potential buyers stack the mortgage payment alongside the monthly rent and consider the comparison complete. There are also some overlooked costs associated with home ownership. Financing, homeowner fees, property taxes, repairs and maintenance can add up quickly. On the other hand, mortgage interest on both first and second homes are tax-deductible which make homeownership one of the best ways to trim your tax bill.
In today's market, shopping around for a competitive interest rate is necessary for solid financing that works with your budget. What you can afford will be greatly impacted by how much money you can borrow, and at what rate you are borrowing. One thing to keep in mind is that like most markets, the mortgage market is very dynamic.
Good credit and a low debt to income ratio will help to secure a lower rate and make the cost of borrowing less in the long run. A good mortgage broker or loan officer can be a great help to a prospective borrower. If a borrower is financially savvy, they could also shop around for the best rates themselves. Anyone with a less than stellar FICO score (680-700 and above is generally considered excellent) could be lumped into what is known as the sub prime mortgage category. If they cannot provide full documentation of their income and/or assets, and have less than stellar credit, then they will almost certainly be categorized as sub prime. First time home buyers sometimes fall in because they haven't established credit. People with existing mortgages who have had late mortgage payments in the past or a bankruptcy might also be sub prime. The easiest way for someone to find out where they stand, in regards to credit, is to run a credit report. There are many different services on the web where this can be done for free, or consult a mortgage broker who can run a credit report and advise accordingly.
Not all types of property are created equal. Condominiums, townhomes and other complex-style dwellings often carry homeowner dues that ranges anywhere from under $100.00 to several hundred dollars a month. These fees are imposed by the homeowner's association for upkeep on common grounds, gym, pool and laundry facilities and other community maintenance. Knowing these fees and what they include is essential to the final assessment of your monthly payment.
Property taxes too are a factor in determining what your monthly payment as a homeowner will be. (Often, loans will have an automated escrow account within the loan which will raise the monthly mortgage, but make this bi-yearly bill automatically accounted for.) Taxes are determined by type of property, property value and location. in your area is the first step.
One of the least considered factors in homeownership is both financial and emotional: the cost of repairs and maintenance. Bad wiring, plumbing, termites, shifted foundation: these are all the bane of a new homeowner's existence. Having a reputable housing inspector go over a prospective property can assist in determining the quality of the structure and help assess the need for repairs. Other overlooked costs include closing costs, which are usually about 1% of the total property value.
Regardless of these costs, it may be advantageous to buy versus to rent, depending on the rate of increase on your rent annually. If rent increases at 5% per year the inflation might overrun a mortgage and its associated costs.
Homeownership
For many, buying a place to call your own is the ultimate financial goal. The non financial value and personal sense of community a homeowner wins is a certain type of satisfaction. There too, are tangible freedoms such as the ability to change the decor or the structure of your home without a landlord's prior approval.
The actual value of non-financial factors will vary greatly. Lifestyle and personal preference will weight heavy in deciding not only when the right time to buy is, but also what type of property. Family size, occupation, need for security: these are all tangible factors that weigh into the final decision of buying versus renting.
There are still, other considerations. As a homeowner, you are your own landlord. Repairs, maintenance and community issues are all the responsibility of the homeowner. If you are someone who prefers less responsibility and greater ease to move, buying investment property rather than a home to live in might be a better choice.
Regardless Of The Final Decision, It Is Important To Carefully Examine Your Options When Looking At Buying Or Renting A Home.
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