Buying your first home is an occasion which marks a very special passage in your life. You are about to go from being a renter to being a home owner which, in a sense, means that you’re going to be "all grown up". But when you start going through the process of first time home buying, you might quickly find that the last thing you feel like is a grown-up. There are just so many things to consider that you can easily begin to feel overwhelmed. Take a deep breath and relax. You’re going to get through this and buy your first home.
Here are the basics of the first time home buyer guide to real estate which is all you need to know to get started with the process:
• Know yourself. The first step to buying a home is knowing what kind of home you want to buy. Believe it or not, many people go looking to buy their first home without really stopping to assess what’s important to them in a home. You should really take the time to figure out everything that you want in a home, including which characteristics are non-negotiable and which you can be flexible about. Ask yourself about everything from neighborhoods and number of bedrooms to age of the home and material of the construction. By narrowing this criteria down before you start looking into buying your first home, you’ll save yourself quite a bit of time and hassle.
• Find a realtor. Although it’s possible to buy a home without the assistance of a professional, it’s a lot easier if you work with someone who knows all about the process. Do your research into local real estate agents and find one who has the knowledge and experience to assist you in buying your first home. When interviewing realtors, ask them specifically about their experience in working with first time home buyers.
• Learn the terminology. Your realtor will be able to explain everything to you as the process goes on, but things will go a lot more smoothly if you know right away what he or she is talking about. You don’t need to know what every single thing in a contract means, but you should learn the basic terminology of the real estate process. Learn about "the closing" and "escrow" and "mortgage". A basic book about real estate or a website defining common real estate terms can do wonders for making you an informed buyer.
• Know the market. At times, it’s a buyer’s market and at times, it’s a seller’s market. Of course, you want to buy when the market is right for you, so start keeping an eye on the market in the months leading up to buying your first home. Don’t buy until the time is right.
• Don’t be afraid to negotiate. Some people find the process of bargaining to be a natural thing but many others hesitate to negotiate. Buying your first home is an exercise in the art of negotiation. Let your real estate agent help you with this part of the process but don’t be afraid of doing it. You should get the home at the right price.
• Make sure that you’re in your budget and get a good home loan. When you were first narrowing down what you wanted in your home, you probably considered cost. Before making the final purchase, make sure that the home is within your budget. And then make sure that you can get a good loan that will allow you to pay the mortgage on your home without excessive stress in your life. The new home may be ideal but if you’re going to have to move out in a year because you can’t actually afford it, then it’s not the right place for your first home.
There are many steps that take place when you’re first buying a home, from finding the home to closing the deal. However, the basics are all the same. By knowing what you want, keeping within those limits and working with professionals who can assist you throughout the process, you’ll be able to buy your first home with relative ease. Before you know it, you’ll feel all grown up.
http://www.buzzle.com/articles//first-time-home-buyer-guide-to-real-estate.html
Saturday, August 25, 2007
5 Useful Tips in Buying a House
Buying a house is a very serious matter that comes in to people’s lives. It is very risky to invest your money in buying just any house you find. You must have some guidelines that can help you decide which house is the best for you. Here are some:
1. Determine your rights
When you are ready to buy your own house, be sure you understand your rights as a homebuyer. Knowing the process of buying a house prevents you from getting scammed. You can personally do your home work or seek for a knowledgeable person like a real estate agent or a broker. Make sure that the agent you hire is licensed and have a wide knowledge regarding the area.
2. Make sure you can afford it
Your budget is really a big deal in buying your own house. What you want is different from what you need, so be practical. You don’t really need a big house if you’re just one person that travels everyday, right? Make sure that you make the best for your money. Seek help or ask for suggestions especially for those who have knowledge in real estate prices. If you can’t stay for at least a year, buying a house is inappropriate for you. You may save a whole lot more of money if you sell it urgently.
3. Make sure it fits your lifestyle
Make your house a home. Be sure it really fits your way of life and you are comfortable with it. A good example of this is if you’re working in an office, a good place to find is near or in the vicinity of your office. If you love nature, a good place to find is outside the city with clean air, near parks, has a mountain view or near at the beach. Your personality really matters in finding a good house. Make sure to look at its suburbs first and try to gather some information about the area and its surroundings. Try also to consider the kind of neighbors you will have.
4. Consider your future plan
If you’re newly married, you might to consider how many kids you want to have. You can assume the number of rooms or the home space you need. If you can afford a house that is near to a good school, it is better. School districts are more important to home buyers, therefore, it will increase your property values.
5. Be organized
It is very important to make your document files organized and safe. Because it will prove that you own the house. It will help you a lot especially when it comes in paying your house payments (taxes and amortization).
Ester is one of the SEOs of http://www.ozfreeonline.com and takes care of the Ozfree Online Real Estate Page where in it offers a comprehensive list of office & commercial real estates, homes for rent or sell and an apartment finder to thousands of properties in Australia. For more information, visit http://www.ozfreeonline.com/realestate.
http://www.buzzle.com/editorials/7-18-2006-102712.asp
1. Determine your rights
When you are ready to buy your own house, be sure you understand your rights as a homebuyer. Knowing the process of buying a house prevents you from getting scammed. You can personally do your home work or seek for a knowledgeable person like a real estate agent or a broker. Make sure that the agent you hire is licensed and have a wide knowledge regarding the area.
2. Make sure you can afford it
Your budget is really a big deal in buying your own house. What you want is different from what you need, so be practical. You don’t really need a big house if you’re just one person that travels everyday, right? Make sure that you make the best for your money. Seek help or ask for suggestions especially for those who have knowledge in real estate prices. If you can’t stay for at least a year, buying a house is inappropriate for you. You may save a whole lot more of money if you sell it urgently.
3. Make sure it fits your lifestyle
Make your house a home. Be sure it really fits your way of life and you are comfortable with it. A good example of this is if you’re working in an office, a good place to find is near or in the vicinity of your office. If you love nature, a good place to find is outside the city with clean air, near parks, has a mountain view or near at the beach. Your personality really matters in finding a good house. Make sure to look at its suburbs first and try to gather some information about the area and its surroundings. Try also to consider the kind of neighbors you will have.
4. Consider your future plan
If you’re newly married, you might to consider how many kids you want to have. You can assume the number of rooms or the home space you need. If you can afford a house that is near to a good school, it is better. School districts are more important to home buyers, therefore, it will increase your property values.
5. Be organized
It is very important to make your document files organized and safe. Because it will prove that you own the house. It will help you a lot especially when it comes in paying your house payments (taxes and amortization).
Ester is one of the SEOs of http://www.ozfreeonline.com and takes care of the Ozfree Online Real Estate Page where in it offers a comprehensive list of office & commercial real estates, homes for rent or sell and an apartment finder to thousands of properties in Australia. For more information, visit http://www.ozfreeonline.com/realestate.
http://www.buzzle.com/editorials/7-18-2006-102712.asp
Real Estate - Tips On Buying A Home After Bankruptcy
Experienced bankruptcy lately? You may wonder if you will still will be able to get a home loan. You may also be wondering if buying home after bankruptcy is a good idea for you.
While bankruptcy can make your mortgage loan approval difficult, it is still possible to get approved. In fact there have been more and more, bad credit loans coming out all the time.
They are called the Subprime lenders; they are focusing more on helping individuals with poor credit in buying home after bankruptcy.
This is happening mostly because bankruptcies are still on the rise and there is an increasing number of people with bad credit who are looking for home financing.
Just to give you a bit of an overview here are some very good reasons to consider after bankruptcy buying home:
Increase your credit rating. When you make your payments on a regular basis, you will be able to develop your credit rating. Once your pre-payment penalty is done, you should be able to refinance your credit loan for a much lesser interest rate.
After your bankruptcy has been for ended 2-3 years, you ought to have a much easier time qualifying for a lesser interest rate mortgage loan.
You will be able to own an asset. If you are just renting a home then you are absolutely throwing your monthly payments away. Why not just buy a home, over time, its value will increase and you are working you way towards owing an asset.
Once you have bought your house, as soon as 6 months or so later, you might be able to take out an equity loan on your home and consolidate any other debt that you might have since your bankruptcy or debt that could not be included in your bankruptcy.
Taxes and student loans will not be discharged in a bankruptcy. You may also want to use the extra cash to invest in a business venture or for needed home improvement.
Read the rest of this article by going now to: buying a home after bankruptcy
http://www.buzzle.com/editorials/2-27-2006-89939.asp
While bankruptcy can make your mortgage loan approval difficult, it is still possible to get approved. In fact there have been more and more, bad credit loans coming out all the time.
They are called the Subprime lenders; they are focusing more on helping individuals with poor credit in buying home after bankruptcy.
This is happening mostly because bankruptcies are still on the rise and there is an increasing number of people with bad credit who are looking for home financing.
Just to give you a bit of an overview here are some very good reasons to consider after bankruptcy buying home:
Increase your credit rating. When you make your payments on a regular basis, you will be able to develop your credit rating. Once your pre-payment penalty is done, you should be able to refinance your credit loan for a much lesser interest rate.
After your bankruptcy has been for ended 2-3 years, you ought to have a much easier time qualifying for a lesser interest rate mortgage loan.
You will be able to own an asset. If you are just renting a home then you are absolutely throwing your monthly payments away. Why not just buy a home, over time, its value will increase and you are working you way towards owing an asset.
Once you have bought your house, as soon as 6 months or so later, you might be able to take out an equity loan on your home and consolidate any other debt that you might have since your bankruptcy or debt that could not be included in your bankruptcy.
Taxes and student loans will not be discharged in a bankruptcy. You may also want to use the extra cash to invest in a business venture or for needed home improvement.
Read the rest of this article by going now to: buying a home after bankruptcy
http://www.buzzle.com/editorials/2-27-2006-89939.asp
Home Buying For Dummies
Residentially speaking, there's never been a more confusing time for Americans. Mixed messages abound. If you're a renter, you wonder if it's time to buy. After all, house prices keep rising steadily. What if you wait so long that you're priced out of the market? Plus, interest rates are still manageable. On the other hand, if you already own a home--especially one in a hot market--you wonder if it's time to sell. What if the much-dreaded "bubble" bursts before you get your piece of the pie? And even if it doesn't, don't you deserve to "trade up"?
Take a few minutes to benefit from the cool head and sage wisdom of financial counselor/real estate guru/bestselling author Eric Tyson. The co-author of three books on the "home" subject--Home Buying For Dummies ® , 3rd Edition (with Ray Brown; Wiley, 2006, ISBN: 0-4717-6847-2, $21.99), House Selling For Dummies ® , 2nd Edition (with Ray Brown; Wiley, ISBN: 0-7645-5425-5, $21.99) and Real Estate Investing For Dummies ® (with Robert S. Griswold; Wiley, ISBN: 0-7645-2565-4, $21.99)--Tyson urges prospective buyers/sellers to think it through carefully before taking the plunge.
"It's easy to get so caught up in hoopla and hysteria that you make an emotional decision or a too-quick one based on false assumptions," he asserts. "Don't do it. Buying a home, whether it's your first one or a trade up, is a big deal with big implications for your economic picture and your quality of life. Think it through."
Tyson offers a few tips to help you do just that, no matter which side of the (white picket) fence you're standing on:
IF YOU'RE A RENTER THINKING OF BUYING . .
· First, be sure you really want to buy and aren't succumbing to peer pressure. If you're a relatively young renter, you may have the impression that home ownership is the "grown up" choice. Nonsense, says Tyson. Buying a home is a personal choice and it isn't necessarily the path to fun. In fact, as he and his co-author point out in Home Buying For Dummies, a study by Peter Rossi and Eleanor Weber of the University of Massachusetts found that:
- Homeowners are less social, on average, than renters--spending less time with friends, neighbors, and co-workers
- Homeowners spend more time on household chores
- Perhaps for the preceding reasons, renters have more sex and less marital discord, and cope better with parenting than homeowners do!
"None of this is meant to suggest that you shouldn't buy a home," Tyson points out. "But do consider the impact that the increased responsibility will have on your lifestyle."
· On the other hand, don't underestimate the financial benefits of homeownership. For most people, owning actually is less expensive than renting. Obviously, there are tax benefits. The IRS and most state governments allow you to deduct, within certain limits, mortgage interest and property taxes when you file your annual income tax return. And generally speaking, the value of a home appreciates as the years go by, turning your home into a "forced savings account" that you'll be glad for in the future.
Here's a guideline that may change the way you view your seemingly cheap monthly rent. To figure out the price of a home you could buy for approximately the same monthly cost of your current rent, simply do the following calculation:
$________ per month x 200 = $ ______________
Example: $1,000 x 200 = $200,000
See? If you are paying rent of $1,000 per month, you would pay approximately the same amount per month to own a $200,000 home (factoring in tax savings.)
· Don't let "lock out" fears rush you into buying. >From time to time, particular local real estate markets experience rapidly escalating prices. During such times, some prospective buyers panic, often with encouragement from those with vested interests in converting prospective renters to buyers. Escalating housing prices make some renters feel left out of the party. But here's a word of sanity: never in the history of the real estate business have prices risen so high as to price vast numbers of people out of the market. In fact, patient buyers who can wait out a market that has increased sharply in value are often rewarded with steadying and, in some cases, declining prices.
IF YOU'RE A HOMEOWNER THINKING OF TRADING UP . . .
· Make sure selling is right for you holistically, not just monetarily. Don't let a "hot housing market" cloud your judgment. If you were lucky enough to buy a nice house in a thriving market ten years ago, the temptation to sell and clear a tidy profit can be huge. But because you can sell doesn't mean you should. Do you really want to uproot your kids from school? Are you ready to break ties with the neighbors you've come to know and like? Are you likely to fall into the trap of choosing a trade up that's too "up" for your budget and bank account? Consider all angles before you make your decision.
"Nothing's wrong with spending money to trade in one house for another, but before you set those wheels in motion, think about the impact of that kind of spending on other aspects of your life," Tyson and his co-author Ray Brown write in House Selling For Dummies. "The more you spend on housing, the less you'll have for other goals that you may have defined for yourself, such as saving for retirement, taking annual vacations, and spending less time working and more time with your family and friends."
· If you do decide to sell, don't get greedy and grossly overprice your house. You may be tempted to do so in hopes that an uneducated buyer may pay you more than the property is really worth. The danger in this strategy is that you won't find a fool who will part with all that money for your overpriced property, and no one else will bid on it. Then, as you lower the price closer to what the house is really worth, prospective buyers may be wary of buying your property because of the extended length of time it's been on the market. In the end, you may have a hard time getting 100 percent of what your home is really worth. Price to sell and you won't regret it.
· Finally, don't you become the aforementioned fool who buys an overpriced trade-up. "Some housing markets are over-inflated at the moment," says Tyson. "And many people who successfully sell an overpriced house assume that they can trade up in the same or an equally hot market and repeat their success in a few years. It ain't necessarily so. Suppose prices fall and you can't recoup your investment? You might be stuck with a house you can't afford to sell. Add a job loss or a new baby to the mix and you might end up with some serious buyer's regret."
The bottom line, of course, is to be sure that any house you buy--be it your first or your fifth--is priced at what it's really worth. Assemble an all-star real estate team and get a good Comparable Market Analysis (CMA) on any house you're considering buying so you'll know the fair market value. And oh, yes: don't just take your agent's word for it. Read up on the "value" subject yourself. (Tyson's books are a great resource.)
"An educated home buyer is a happy home buyer," concludes Tyson. "Do your own due diligence. I always say there are two areas you should never enter into uninformed: medical procedures and real estate. The former represents your health, the latter represents, in many ways, your wealth and your happiness. Do your homework, no pun intended. Bubble or no bubble, you'll be glad you did."
About Eric Tyson:
Eric Tyson is one of the nation's best-selling personal finance book authors and has penned five national best sellers (he is also the only author to have four of his books simultaneously on Business Week's business book best-seller list). His Personal Finance for Dummies (Wiley) won the Benjamin Franklin Award for the Best Business Book of the Year. He is also the author of Investing for Dummies and co-author of Home Buying for Dummies and Real Estate Investing for Dummies, among other titles.
His new book, Mind over Money (CDS/Perseus), examines the problematic financial habits people engage in and provides proven strategies for overcoming them.
Eric is a former columnist and award-winning journalist for the San Francisco Examiner. His work has been featured and quoted in hundreds of local and national publications and media outlets including Newsweek, The Wall Street Journal, Los Angeles Times, Chicago Tribune, Forbes, Kiplinger's Personal Finance, Money, Worth, Parenting, and USA Today, as well as on NBC's Today Show, ABC, CNBC, PBS's Nightly Business Report, CNN, CBS national radio, NPR's MarketPlace Money, and Bloomberg Business Radio. He was also a featured speaker at a White House conference on retirement planning.
Tired of working as a management consultant to Fortune 500 financial services firms that were more interested in maximizing short-term profits than in providing sound financial products and services, Eric founded, in 1990, the nation's first financial counseling firm that works exclusively on an hourly basis. He started his new company with a simple mission: to provide objective, cost-effective, personal finance advice, especially to nonwealthy Americans. Through family and friends, Eric had seen many intelligent people make horrendous mistakes in managing their money.
In addition to his writing and counseling, Eric also taught the nation's most highly attended personal financial management course at the University of California, Berkeley. A dynamic and provocative speaker, he has spoken at many corporations and nonprofits.
His educational background includes a bachelor's degree in economics from Yale and an MBA from the Stanford Graduate School of Business.
http://www.buzzle.com/editorials/6-27-2006-100638.asp
Take a few minutes to benefit from the cool head and sage wisdom of financial counselor/real estate guru/bestselling author Eric Tyson. The co-author of three books on the "home" subject--Home Buying For Dummies ® , 3rd Edition (with Ray Brown; Wiley, 2006, ISBN: 0-4717-6847-2, $21.99), House Selling For Dummies ® , 2nd Edition (with Ray Brown; Wiley, ISBN: 0-7645-5425-5, $21.99) and Real Estate Investing For Dummies ® (with Robert S. Griswold; Wiley, ISBN: 0-7645-2565-4, $21.99)--Tyson urges prospective buyers/sellers to think it through carefully before taking the plunge.
"It's easy to get so caught up in hoopla and hysteria that you make an emotional decision or a too-quick one based on false assumptions," he asserts. "Don't do it. Buying a home, whether it's your first one or a trade up, is a big deal with big implications for your economic picture and your quality of life. Think it through."
Tyson offers a few tips to help you do just that, no matter which side of the (white picket) fence you're standing on:
IF YOU'RE A RENTER THINKING OF BUYING . .
· First, be sure you really want to buy and aren't succumbing to peer pressure. If you're a relatively young renter, you may have the impression that home ownership is the "grown up" choice. Nonsense, says Tyson. Buying a home is a personal choice and it isn't necessarily the path to fun. In fact, as he and his co-author point out in Home Buying For Dummies, a study by Peter Rossi and Eleanor Weber of the University of Massachusetts found that:
- Homeowners are less social, on average, than renters--spending less time with friends, neighbors, and co-workers
- Homeowners spend more time on household chores
- Perhaps for the preceding reasons, renters have more sex and less marital discord, and cope better with parenting than homeowners do!
"None of this is meant to suggest that you shouldn't buy a home," Tyson points out. "But do consider the impact that the increased responsibility will have on your lifestyle."
· On the other hand, don't underestimate the financial benefits of homeownership. For most people, owning actually is less expensive than renting. Obviously, there are tax benefits. The IRS and most state governments allow you to deduct, within certain limits, mortgage interest and property taxes when you file your annual income tax return. And generally speaking, the value of a home appreciates as the years go by, turning your home into a "forced savings account" that you'll be glad for in the future.
Here's a guideline that may change the way you view your seemingly cheap monthly rent. To figure out the price of a home you could buy for approximately the same monthly cost of your current rent, simply do the following calculation:
$________ per month x 200 = $ ______________
Example: $1,000 x 200 = $200,000
See? If you are paying rent of $1,000 per month, you would pay approximately the same amount per month to own a $200,000 home (factoring in tax savings.)
· Don't let "lock out" fears rush you into buying. >From time to time, particular local real estate markets experience rapidly escalating prices. During such times, some prospective buyers panic, often with encouragement from those with vested interests in converting prospective renters to buyers. Escalating housing prices make some renters feel left out of the party. But here's a word of sanity: never in the history of the real estate business have prices risen so high as to price vast numbers of people out of the market. In fact, patient buyers who can wait out a market that has increased sharply in value are often rewarded with steadying and, in some cases, declining prices.
IF YOU'RE A HOMEOWNER THINKING OF TRADING UP . . .
· Make sure selling is right for you holistically, not just monetarily. Don't let a "hot housing market" cloud your judgment. If you were lucky enough to buy a nice house in a thriving market ten years ago, the temptation to sell and clear a tidy profit can be huge. But because you can sell doesn't mean you should. Do you really want to uproot your kids from school? Are you ready to break ties with the neighbors you've come to know and like? Are you likely to fall into the trap of choosing a trade up that's too "up" for your budget and bank account? Consider all angles before you make your decision.
"Nothing's wrong with spending money to trade in one house for another, but before you set those wheels in motion, think about the impact of that kind of spending on other aspects of your life," Tyson and his co-author Ray Brown write in House Selling For Dummies. "The more you spend on housing, the less you'll have for other goals that you may have defined for yourself, such as saving for retirement, taking annual vacations, and spending less time working and more time with your family and friends."
· If you do decide to sell, don't get greedy and grossly overprice your house. You may be tempted to do so in hopes that an uneducated buyer may pay you more than the property is really worth. The danger in this strategy is that you won't find a fool who will part with all that money for your overpriced property, and no one else will bid on it. Then, as you lower the price closer to what the house is really worth, prospective buyers may be wary of buying your property because of the extended length of time it's been on the market. In the end, you may have a hard time getting 100 percent of what your home is really worth. Price to sell and you won't regret it.
· Finally, don't you become the aforementioned fool who buys an overpriced trade-up. "Some housing markets are over-inflated at the moment," says Tyson. "And many people who successfully sell an overpriced house assume that they can trade up in the same or an equally hot market and repeat their success in a few years. It ain't necessarily so. Suppose prices fall and you can't recoup your investment? You might be stuck with a house you can't afford to sell. Add a job loss or a new baby to the mix and you might end up with some serious buyer's regret."
The bottom line, of course, is to be sure that any house you buy--be it your first or your fifth--is priced at what it's really worth. Assemble an all-star real estate team and get a good Comparable Market Analysis (CMA) on any house you're considering buying so you'll know the fair market value. And oh, yes: don't just take your agent's word for it. Read up on the "value" subject yourself. (Tyson's books are a great resource.)
"An educated home buyer is a happy home buyer," concludes Tyson. "Do your own due diligence. I always say there are two areas you should never enter into uninformed: medical procedures and real estate. The former represents your health, the latter represents, in many ways, your wealth and your happiness. Do your homework, no pun intended. Bubble or no bubble, you'll be glad you did."
About Eric Tyson:
Eric Tyson is one of the nation's best-selling personal finance book authors and has penned five national best sellers (he is also the only author to have four of his books simultaneously on Business Week's business book best-seller list). His Personal Finance for Dummies (Wiley) won the Benjamin Franklin Award for the Best Business Book of the Year. He is also the author of Investing for Dummies and co-author of Home Buying for Dummies and Real Estate Investing for Dummies, among other titles.
His new book, Mind over Money (CDS/Perseus), examines the problematic financial habits people engage in and provides proven strategies for overcoming them.
Eric is a former columnist and award-winning journalist for the San Francisco Examiner. His work has been featured and quoted in hundreds of local and national publications and media outlets including Newsweek, The Wall Street Journal, Los Angeles Times, Chicago Tribune, Forbes, Kiplinger's Personal Finance, Money, Worth, Parenting, and USA Today, as well as on NBC's Today Show, ABC, CNBC, PBS's Nightly Business Report, CNN, CBS national radio, NPR's MarketPlace Money, and Bloomberg Business Radio. He was also a featured speaker at a White House conference on retirement planning.
Tired of working as a management consultant to Fortune 500 financial services firms that were more interested in maximizing short-term profits than in providing sound financial products and services, Eric founded, in 1990, the nation's first financial counseling firm that works exclusively on an hourly basis. He started his new company with a simple mission: to provide objective, cost-effective, personal finance advice, especially to nonwealthy Americans. Through family and friends, Eric had seen many intelligent people make horrendous mistakes in managing their money.
In addition to his writing and counseling, Eric also taught the nation's most highly attended personal financial management course at the University of California, Berkeley. A dynamic and provocative speaker, he has spoken at many corporations and nonprofits.
His educational background includes a bachelor's degree in economics from Yale and an MBA from the Stanford Graduate School of Business.
http://www.buzzle.com/editorials/6-27-2006-100638.asp
Home Buying: Things to keep in mind
So you’ve decided you want to own a home and now you want to begin your search for one. Before jumping into a home search, there are a few things you should keep in mind when going about buying a home.
First things first, you cannot buy a home if you can’t afford it! Don’t assume how much you can afford, find out your loan eligibility. If you’re planning on purchasing a car or any other high-priced item on a loan, then please stall such purchase until after you get your home as your eligibility reduces with every other loan you hold at the time of a mortgage application.
Next, when you go in to see a home, don’t let an unkempt / untidy house put you off. Try and visualise the house in its best condition and see if it would suit you then. In fact, an unkempt house may put other buyers off and by some chance this may lead you into a better position when negotiating for the home, as the seller may find it difficult finding a buyer for his place.
If the home you decide to purchase is being sold by the home owner himself, don’t deposit any earnest money with him directly. Such earnest money should be deposited in a trust account as some owners mistake such money to be theirs and hesitate in refunding the same if the deal falls through for valid reasons, such as financing or repair issues.
Once you’ve finalised on a home and go to get an appraisal of the home done by a professional appraiser, do not panic if the appraisal value comes below the actual price you decide to pay for the home. There are options you can consider in this case. You would have to consult your agent or your mortgage broker for some advice.
Some other factors you may want to consider are listed below:
- Any signs of leakage in the house near the roofs and the foundation walls
- Problems with the sewer drainage system, if any
- Neighborhood by daylight and night. Drive by and see for yourself before making a decision.
- Natural light. Are the rooms dark without artifical light? Does that concern you?
- The amount of property taxes that has to be paid every year
- Any structure on the property which may overlap into an adjoining property.
- Is the home located in an airport's flight path?
- Any planned roadways, which may eat into the property's front yard.
So, don’t rush into buying a home without considering some of these factors. Wish you the best of luck in finding your new home!
Sameer S Panjwani is the CEO and Founder of ChoiceOfHomes.com - Real Estate Portal to Sell / Rent Your Home Online.
http://www.buzzle.com/editorials/4-19-2005-68753.asp
First things first, you cannot buy a home if you can’t afford it! Don’t assume how much you can afford, find out your loan eligibility. If you’re planning on purchasing a car or any other high-priced item on a loan, then please stall such purchase until after you get your home as your eligibility reduces with every other loan you hold at the time of a mortgage application.
Next, when you go in to see a home, don’t let an unkempt / untidy house put you off. Try and visualise the house in its best condition and see if it would suit you then. In fact, an unkempt house may put other buyers off and by some chance this may lead you into a better position when negotiating for the home, as the seller may find it difficult finding a buyer for his place.
If the home you decide to purchase is being sold by the home owner himself, don’t deposit any earnest money with him directly. Such earnest money should be deposited in a trust account as some owners mistake such money to be theirs and hesitate in refunding the same if the deal falls through for valid reasons, such as financing or repair issues.
Once you’ve finalised on a home and go to get an appraisal of the home done by a professional appraiser, do not panic if the appraisal value comes below the actual price you decide to pay for the home. There are options you can consider in this case. You would have to consult your agent or your mortgage broker for some advice.
Some other factors you may want to consider are listed below:
- Any signs of leakage in the house near the roofs and the foundation walls
- Problems with the sewer drainage system, if any
- Neighborhood by daylight and night. Drive by and see for yourself before making a decision.
- Natural light. Are the rooms dark without artifical light? Does that concern you?
- The amount of property taxes that has to be paid every year
- Any structure on the property which may overlap into an adjoining property.
- Is the home located in an airport's flight path?
- Any planned roadways, which may eat into the property's front yard.
So, don’t rush into buying a home without considering some of these factors. Wish you the best of luck in finding your new home!
Sameer S Panjwani is the CEO and Founder of ChoiceOfHomes.com - Real Estate Portal to Sell / Rent Your Home Online.
http://www.buzzle.com/editorials/4-19-2005-68753.asp
Six home buying disasters to avoid
Whether you are a first time home buyer or a happy home owner who wants to refinance an existing home loan, there are some cardinal "dos" and "don’ts" to follow. For many, home ownership is the biggest investment in their lives and that could be the reason why some people act irrationally, as if they purposely want to sabotage the deal. Follow these simple rules and you will be sure to make your experience difficult and unpleasant, if not a complete disaster.
Don't get pre-approved or pre-qualified for a loan; lose your dream home to someone else.
Being pre-qualified shows some commitment on your part to both the mortgage broker and the seller. Being pre-approved is an even better step to take. The lender knows your financial standing and is able to present you with the loan deal. If you are neither pre-approved nor pre-qualified, a real estate agent representing the seller will not treat you seriously, and the property you want will most likely sell to someone else during the time you waste securing a home loan. Go ahead and procrastinate, you didn't want that house anyway.
Make verbal contracts only. Talk is not cheap.
Since they are not enforceable in most states, make sure that the details of the deal regarding who pays certain costs or necessary repairs are agreed on verbally, and only verbally. Similarly, when the lender tells you that your rate is locked in, don’t ask for written evidence. You might be in for a big surprise at the closing appointment, but who doesn't like surprises?
No need to be discriminating. Choose a lender by using only one criteria.
A favorite criteria of most people is to go with a bank that offers the lowest interest rate, without any consideration of the true cost of the loan. Even if you know how to calculate it, you'll probably choose the lowest rate loan. The chances are that the lowest rate bank is charging a lot more in fees and points than others, but who has time to shop around? Life is busy. Others, usually more cautious people, go with the bank where they have their checking account. After all, your bank loves you and would not wish any financial harm, right?
Pay more than you should. Choose the seller’s real estate agent to represent you.
It is truly the best option. Rather than asking friends or colleagues for referrals, picking up the yellow pages or searching online for your own agent, simply go with someone whose job it is to get the best deal for the seller. Who cares about conflict of interest. Be house poor.
No need for tedious professional home inspections.
After all, what could go wrong? Leaky roofs, plumbing problems, termites, asbestos; all a minor nuisance. If electrical problems happen to start a fire… well, that’s what smoke detectors are for.
Don't bother reading important contracts. Just sign all documents.
They are long, difficult to read and understand and are very time consuming. Rather than familiarize yourself with them ahead of time, just wait and sign everything at your closing appointment. Besides, what you've signed may open the door to a world of surprising homeowner adventures you could never have imagined. More surprises for you to enjoy!
Buying a house will most likely be the most important purchase you make in your life. Don't mess it up!
There are countless websites, magazines, books etc with which you can empower yourself in this daunting task. Don't let yourself be taken advantage of; learn all that there is when it comes to buying a home. If you want to fail, just follow the preceding steps. But, success at negotiating the best price and the best loan rates can be achieved by simply avoiding these foolish and costly mistakes. The lenders and agents are counting on you to walk blindly into your home purchase. For them, the bottom line is getting the commission. They are hoping for as quick a sale as possible, and they would like you to be a typical uninformed client who makes decisions with their hearts only and not their heads. Make the agents work for you. Take the extra time, arm yourself with the knowledge of home buying and lending practices in order to make informed, sound judgments and decisions.
http://www.buzzle.com/editorials/2-23-2006-89694.asp
Don't get pre-approved or pre-qualified for a loan; lose your dream home to someone else.
Being pre-qualified shows some commitment on your part to both the mortgage broker and the seller. Being pre-approved is an even better step to take. The lender knows your financial standing and is able to present you with the loan deal. If you are neither pre-approved nor pre-qualified, a real estate agent representing the seller will not treat you seriously, and the property you want will most likely sell to someone else during the time you waste securing a home loan. Go ahead and procrastinate, you didn't want that house anyway.
Make verbal contracts only. Talk is not cheap.
Since they are not enforceable in most states, make sure that the details of the deal regarding who pays certain costs or necessary repairs are agreed on verbally, and only verbally. Similarly, when the lender tells you that your rate is locked in, don’t ask for written evidence. You might be in for a big surprise at the closing appointment, but who doesn't like surprises?
No need to be discriminating. Choose a lender by using only one criteria.
A favorite criteria of most people is to go with a bank that offers the lowest interest rate, without any consideration of the true cost of the loan. Even if you know how to calculate it, you'll probably choose the lowest rate loan. The chances are that the lowest rate bank is charging a lot more in fees and points than others, but who has time to shop around? Life is busy. Others, usually more cautious people, go with the bank where they have their checking account. After all, your bank loves you and would not wish any financial harm, right?
Pay more than you should. Choose the seller’s real estate agent to represent you.
It is truly the best option. Rather than asking friends or colleagues for referrals, picking up the yellow pages or searching online for your own agent, simply go with someone whose job it is to get the best deal for the seller. Who cares about conflict of interest. Be house poor.
No need for tedious professional home inspections.
After all, what could go wrong? Leaky roofs, plumbing problems, termites, asbestos; all a minor nuisance. If electrical problems happen to start a fire… well, that’s what smoke detectors are for.
Don't bother reading important contracts. Just sign all documents.
They are long, difficult to read and understand and are very time consuming. Rather than familiarize yourself with them ahead of time, just wait and sign everything at your closing appointment. Besides, what you've signed may open the door to a world of surprising homeowner adventures you could never have imagined. More surprises for you to enjoy!
Buying a house will most likely be the most important purchase you make in your life. Don't mess it up!
There are countless websites, magazines, books etc with which you can empower yourself in this daunting task. Don't let yourself be taken advantage of; learn all that there is when it comes to buying a home. If you want to fail, just follow the preceding steps. But, success at negotiating the best price and the best loan rates can be achieved by simply avoiding these foolish and costly mistakes. The lenders and agents are counting on you to walk blindly into your home purchase. For them, the bottom line is getting the commission. They are hoping for as quick a sale as possible, and they would like you to be a typical uninformed client who makes decisions with their hearts only and not their heads. Make the agents work for you. Take the extra time, arm yourself with the knowledge of home buying and lending practices in order to make informed, sound judgments and decisions.
http://www.buzzle.com/editorials/2-23-2006-89694.asp
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