It is much better to pay a home mortgage loan and build equity than it is to rent and pay someone else's home mortgage loan for them.
By purchasing your own home you are investing in your own future. The possibility of owning ones own home is easily within reach, if there is someone there to help.
When buying your own home there are many programs specifically tailored to meet your needs.
The US government insures many of these programs which in turn reduces the risk for a lender. Due to the reduction in risk lenders are extending more credit to first time buyers than ever before.
In 2005 40% of home buyer's were able to finance their home mortgage loan with no cash down. This dramatic increase is due to government subsidized loans. Stop paying another persons loan and begin earning equity in your own home.
The best place to start is by getting a pre-approval. The best thing one can do is have a friendly experienced mortgage company to help you through the process. There are several steps that one should analyze as a first time buyer. All of these steps will help you in during your first home purchase and first home mortgage loan.
1. Get an idea of what you can afford
There are several factors, that when combined, will tell one what is affordable as a housing expense. It is best to contact a mortgage broker to help with the calculations.
Some of the criteria include, but are not limited to: income, current expenses, credit, down payment, interest, job stability, payment history, loan rate, loan term and closing costs.
2. Know your rights
You should receive a copy of a Good Faith Estimate or GFE. You need to know what the fees are associated with the home loan and the total cost of interest to you. These are called the closing costs.
Although getting a low rate loan is great, one has to realize that the closing costs have an effect on the annual percentage rate. The annual percentage rate is different than the interest rate. The annual percentage rate is a calculation that includes the interest and the closing costs.
It is illegal to be discriminated against based on your sex, creed, race, age, sexual preference and several other issues. You are entitled to know why you were not approved for credit if that is the case.
3. Shop around
There are tens of thousands of lenders and brokers in the United States. Find someone you are comfortable with. A lot of people do not realize that when one goes to a lender they can only take advantage of a program that the specific lender offers.
By utilizing a broker you are able to take advantage of the wholesale purchasing power of that broker. A broker can generally save money from what a lender would actually charge.
4. Understand the programs available to you
There are several government insured loans that can help to relax the requirements needed to get a home mortgage loan. Last year 40% of home buyers purchased their new home with no money down. This dispels the myth that one needs to put money down in order to purchase a home and get a home mortgage loan. FHA, VA, and HUD are three government insured loans.
5. Shop for a home
Finding the right home is a very important process. There are more factors involved than the home itself. Look at the school systems, the emergency service personnel, and the town or city government. Make sure the home you pick is in the place you want to live as well.
Make sure you look at more than one home. Even if your first impression of the first home you look at is "This is the one!" take a look at a few more just to make sure. This, for most people, is the biggest purchase they will make in their entire lives. Take your time and be sure about the right home.
6. Make an offer
When making an offer make sure everything is put in writing. What items you would like included. Things like curtains, blinds, fixtures, chandeliers. All of these things should be listed on the purchase agreement to make sure you are getting what you requested. Simply because you place an item on the purchase agreement does not mean the seller will agree to it. It does mean that it will at least get addressed and will be factored during the negotiation. Make sure you make the sale contingent on a home inspection and have everything put in writing.
7. Have a professional inspect the home
Hire a professional home inspector. The home inspector will go through the home and make sure the home is in good condition. Although a home may look beautiful from the outside, there could be some underlying issues that would change your opinion. The home inspector will make sure all of the mechanical and electrical systems are sound and will also make sure there is no damage from water, rodents or insects.
8. Shop for home owner's insurance
There are plenty of insurance companies out there. Just like auto insurance, the premiums can vary greatly between companies. Check several companies and make sure you are getting a good price for the coverage you need.
9. Close on your first new home
When closing on a home it is very important to read everything that you sign. It is important to get copies of the documentation prior to closing so you can go through them. You need to be able to address any concerns prior to the final signing date. If everything is in order, receive your keys, and move into your new home.
http://www.homebuyinginstitute.com/homebuyingprocess_article7.php
Monday, September 3, 2007
Home Buying Advice
Knowing Your Rights as a Borrower
Several federal laws provide you with protection during the processing of your loan. These laws prohibit discrimination and provide you with rights to certain information. Here are some of your basic rights.
Discrimination
The Equal Credit Opportunities Act (ECOA) prohibits lenders from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, martial status, or age. The Act also prevents discrimination resulting from the applicants income source, if said income comes from any public assistance program. Finally, ECOA prevents discrimination based on the fact that the applicant has exercised any right under any federal consumer protection law.
It's important however to note the following distinction - This does not mean that the lender won't ask for certain information such as race, sex, age, and marital status when taking your application. In fact, they frequently must do so in order to help government agencies monitor ECOA compliance.
Your local or state government will likely also have laws in place prohibiting discrimination. While overall very similar, these laws can and do vary from state to state.
Prompt Action/Notification of Action
Once you have submitted your completed application, your lender or mortgage broker must act on it and inform you of the action taken no later than 30 days after it is received. Note: your application will not be considered "complete" until you have submitted all of the material and information requested.
Statement of Reason for Denial
If your application is denied, the lender must give you a statement of specific reasons why you were denied, or at the very least tell you how you can acquire such a statement. If it was due to information obtained on your credit report, the Fair Credit Reporting Act (FCRA) requires the lender to give you information on how you can obtain a free copy of your credit report. You always have the right to dispute the accuracy or completeness of any information found on your credit report, but such disputes typically happen begin with you and the credit reporting agency that provided the report. The agency will provide you with the steps you'll need to take to clean up your report. The three major credit reporting agencies are:
* Experian 1-800-682-7654
* Equifax 1-800-685-1111
* Trans Union 1-800-916-8800
Obtaining Your Appraisal
The lender needs to know the value of your home to determine if it is enough to secure the loan. To do this, the lender typically hires a professional appraiser to give their opinion on the value of the home. ECOA requires the lender to tell you that you have a right to get a copy of the appraisal report, as well as how and when you can obtain it.
If you feel that you have been discriminated against by a lender or anyone else in the home buying process, you may want to talk to an attorney; or ask the federal agency that enforces ECOA (the Board of Governors of the Federal Reserve System) or the Fair Housing Act (HUD). For more information or to download a complaint form, visit http://www.hud.gov/fhe/fheact.html.
http://www.greatriverfcu.org/asp/mortgage/mortgage_advice.asp?id=4
Several federal laws provide you with protection during the processing of your loan. These laws prohibit discrimination and provide you with rights to certain information. Here are some of your basic rights.
Discrimination
The Equal Credit Opportunities Act (ECOA) prohibits lenders from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, martial status, or age. The Act also prevents discrimination resulting from the applicants income source, if said income comes from any public assistance program. Finally, ECOA prevents discrimination based on the fact that the applicant has exercised any right under any federal consumer protection law.
It's important however to note the following distinction - This does not mean that the lender won't ask for certain information such as race, sex, age, and marital status when taking your application. In fact, they frequently must do so in order to help government agencies monitor ECOA compliance.
Your local or state government will likely also have laws in place prohibiting discrimination. While overall very similar, these laws can and do vary from state to state.
Prompt Action/Notification of Action
Once you have submitted your completed application, your lender or mortgage broker must act on it and inform you of the action taken no later than 30 days after it is received. Note: your application will not be considered "complete" until you have submitted all of the material and information requested.
Statement of Reason for Denial
If your application is denied, the lender must give you a statement of specific reasons why you were denied, or at the very least tell you how you can acquire such a statement. If it was due to information obtained on your credit report, the Fair Credit Reporting Act (FCRA) requires the lender to give you information on how you can obtain a free copy of your credit report. You always have the right to dispute the accuracy or completeness of any information found on your credit report, but such disputes typically happen begin with you and the credit reporting agency that provided the report. The agency will provide you with the steps you'll need to take to clean up your report. The three major credit reporting agencies are:
* Experian 1-800-682-7654
* Equifax 1-800-685-1111
* Trans Union 1-800-916-8800
Obtaining Your Appraisal
The lender needs to know the value of your home to determine if it is enough to secure the loan. To do this, the lender typically hires a professional appraiser to give their opinion on the value of the home. ECOA requires the lender to tell you that you have a right to get a copy of the appraisal report, as well as how and when you can obtain it.
If you feel that you have been discriminated against by a lender or anyone else in the home buying process, you may want to talk to an attorney; or ask the federal agency that enforces ECOA (the Board of Governors of the Federal Reserve System) or the Fair Housing Act (HUD). For more information or to download a complaint form, visit http://www.hud.gov/fhe/fheact.html.
http://www.greatriverfcu.org/asp/mortgage/mortgage_advice.asp?id=4
Purchasing a Vacation Home
It's vacation season. Whether you're enjoying a beachfront house, country cottage, or mountain chalet, chances are you have a vision of calling your favorite vacation spot "home" one day.
With an expected increase in demand, today's favorable interest rates, and creative vacation home mortgage options, it's a great time to invest in a second home. In fact, it's a wise investment.
CNN recently reported that homes in 13 top seasonal (vacation) counties appreciated by 49% between the fourth quarters of 2000 and 2003.*
This trend will likely continue. As baby boomers begin to retire, it's expected that more than 30 million Americans will buy a vacation home within the next decade.
With rising demand in popular vacation areas, knowing your vacation home mortgage options and how much you can afford can make a big difference in getting your perfect vacation home. Many homeowners use the equity in their primary home to finance their vacation investment, or take advantage of other vacation home mortgage options such as interest-only programs. Calculate your potential monthly payments using our payment calculator to see if you can afford to invest in a vacation home, or call a Quicken Loans home loan expert at 800-251-9080 for creative financing advice.
Before you begin your search, here are a few things you should consider:
* Family appeal: How does it fit the needs of your family? Will there be space and activities for family members who visit?
* Travel time: If it takes all day to get to your vacation home, you may not visit it as frequently. Two to three hours travel time is ideal.
* Climate: What is the area like year-round, especially during off-season? What are the political and tax issues? Browse through local newspapers as a guide.
* Healthcare facilities: If your vacation home becomes your primary residence one day, quality healthcare may be one of your top priorities.
It has never been easier to bring your vision of beachfront, mountain, or lakeside properties into focus. With the proper planning and home financing, your dream of owning a vacation retreat can be a reality.
http://www.quickenloans.com/mortgage/articles/buying_home/buying_vacation_home.html?lid=804
With an expected increase in demand, today's favorable interest rates, and creative vacation home mortgage options, it's a great time to invest in a second home. In fact, it's a wise investment.
CNN recently reported that homes in 13 top seasonal (vacation) counties appreciated by 49% between the fourth quarters of 2000 and 2003.*
This trend will likely continue. As baby boomers begin to retire, it's expected that more than 30 million Americans will buy a vacation home within the next decade.
With rising demand in popular vacation areas, knowing your vacation home mortgage options and how much you can afford can make a big difference in getting your perfect vacation home. Many homeowners use the equity in their primary home to finance their vacation investment, or take advantage of other vacation home mortgage options such as interest-only programs. Calculate your potential monthly payments using our payment calculator to see if you can afford to invest in a vacation home, or call a Quicken Loans home loan expert at 800-251-9080 for creative financing advice.
Before you begin your search, here are a few things you should consider:
* Family appeal: How does it fit the needs of your family? Will there be space and activities for family members who visit?
* Travel time: If it takes all day to get to your vacation home, you may not visit it as frequently. Two to three hours travel time is ideal.
* Climate: What is the area like year-round, especially during off-season? What are the political and tax issues? Browse through local newspapers as a guide.
* Healthcare facilities: If your vacation home becomes your primary residence one day, quality healthcare may be one of your top priorities.
It has never been easier to bring your vision of beachfront, mountain, or lakeside properties into focus. With the proper planning and home financing, your dream of owning a vacation retreat can be a reality.
http://www.quickenloans.com/mortgage/articles/buying_home/buying_vacation_home.html?lid=804
Homeowner Tax Deductions
Deducting Mortgage Interest. Mortgage interest on a primary residence is usually fully tax-deductible, unless your mortgage balance exceeds $1 million or you took out a mortgage for reasons other than buying, building or improving a home.
To claim this tax deduction, you should fill out Schedule A, labeled "itemized deductions." Your lender should send you a "Form 1098" that tells you how much mortgage interest you paid for the year. You should record your interest deduction on line 10.
Late payment charges also may be deducted as home mortgage interest if not for a specific service received in connection with your home loan. The same is true for mortgage prepayment penalties—if you pay off your mortgage early and incur a prepayment penalty, you can deduct that penalty as home mortgage interest (subject to the same requirements for late payments).
Deducting Real Estate Taxes. Real estate taxes, which are annual taxes based on the assessed value of a property, also are tax deductible. Your mortgage interest statement may list the amount of real estate taxes you paid if your taxes and homeowners' insurance were placed in an escrow account when you closed on your mortgage. If real estate taxes aren't included, you could review your cancelled checks to determine your total real estate tax deduction.
Deducting Loan Points Paid on a Purchase. The points you pay on a purchase mortgage are deductible the year you made the purchase. You can deduct any points you paid—and that a seller paid on your behalf*—if you meet the following criteria:
* The loan is secured by your primary residence and the loan was used to buy, improve or build the home.
* Paying points (and the amount of points paid) is not an irregular practice in the seller's geographic area;
* The points are computed as a percentage of the loan principal;
* The points are clearly delineated on the buyer's settlement statement; and
* You put cash into your home purchase in an amount at least equal to the points you were charged.
*Seller Paid Points are Deductible by the Buyer. When a seller pays points for the buyer (or in other words, buys the mortgage rate down) the buyer gets a lower mortgage rate.
Deducting Loan Points Paid on a Refinance. If you refinanced last year, you may be able to write-off any points you paid to buy down the mortgage rate. To do so, you deduct the points proportionately over the life of the new loan. For example, if you took out a 30-year loan, you would deduct 1/30th of the points you paid each year.
Have you refinanced more than once in recent years? Many homeowners may have overlooked an important opportunity. Say, for example, you refinanced in 2003 and paid points. You can deduct 1/30th of those points in that tax year. However, say you refinanced again in 2006, paying off that 2003 loan. The remaining points from the 2003 refinance-that is, those that hadn't yet been deducted-can now be deducted in full since that loan has been paid off.
Deducting Interest on a Home Equity Loan. The interest on a home equity loan is usually tax-deductible*. However, if your home equity loan when combined with your first mortgage amount, increases the debt on your home to an amount more than the property's actual value, there may be deductibility limits. Usually, you can deduct the smaller of interest on a $100,000 loan or your home's value less the amount of your existing mortgage.
http://www.quickenloans.com/mortgage/articles/buying_home/homeowner_tax_tips.html
To claim this tax deduction, you should fill out Schedule A, labeled "itemized deductions." Your lender should send you a "Form 1098" that tells you how much mortgage interest you paid for the year. You should record your interest deduction on line 10.
Late payment charges also may be deducted as home mortgage interest if not for a specific service received in connection with your home loan. The same is true for mortgage prepayment penalties—if you pay off your mortgage early and incur a prepayment penalty, you can deduct that penalty as home mortgage interest (subject to the same requirements for late payments).
Deducting Real Estate Taxes. Real estate taxes, which are annual taxes based on the assessed value of a property, also are tax deductible. Your mortgage interest statement may list the amount of real estate taxes you paid if your taxes and homeowners' insurance were placed in an escrow account when you closed on your mortgage. If real estate taxes aren't included, you could review your cancelled checks to determine your total real estate tax deduction.
Deducting Loan Points Paid on a Purchase. The points you pay on a purchase mortgage are deductible the year you made the purchase. You can deduct any points you paid—and that a seller paid on your behalf*—if you meet the following criteria:
* The loan is secured by your primary residence and the loan was used to buy, improve or build the home.
* Paying points (and the amount of points paid) is not an irregular practice in the seller's geographic area;
* The points are computed as a percentage of the loan principal;
* The points are clearly delineated on the buyer's settlement statement; and
* You put cash into your home purchase in an amount at least equal to the points you were charged.
*Seller Paid Points are Deductible by the Buyer. When a seller pays points for the buyer (or in other words, buys the mortgage rate down) the buyer gets a lower mortgage rate.
Deducting Loan Points Paid on a Refinance. If you refinanced last year, you may be able to write-off any points you paid to buy down the mortgage rate. To do so, you deduct the points proportionately over the life of the new loan. For example, if you took out a 30-year loan, you would deduct 1/30th of the points you paid each year.
Have you refinanced more than once in recent years? Many homeowners may have overlooked an important opportunity. Say, for example, you refinanced in 2003 and paid points. You can deduct 1/30th of those points in that tax year. However, say you refinanced again in 2006, paying off that 2003 loan. The remaining points from the 2003 refinance-that is, those that hadn't yet been deducted-can now be deducted in full since that loan has been paid off.
Deducting Interest on a Home Equity Loan. The interest on a home equity loan is usually tax-deductible*. However, if your home equity loan when combined with your first mortgage amount, increases the debt on your home to an amount more than the property's actual value, there may be deductibility limits. Usually, you can deduct the smaller of interest on a $100,000 loan or your home's value less the amount of your existing mortgage.
http://www.quickenloans.com/mortgage/articles/buying_home/homeowner_tax_tips.html
How to Analyze Home Buyer Personality Types to Improve Real Estate Negotiations
Whether you are buying or selling a home, you will face all kinds of people - people motivated by a variety of factors. By identifying their skills and preferences, you can form a strategy that will improve your negotiations skills during real estate transactions. When negotiating the sales price or purchase price of a home it can be helpful to classify people into three broad types - analytical, visual, and intuitive - in terms of the way their thinking influences their behavior.
Analytical People - The analytical home buyer/seller is mostly influenced by financial, statistical and factual matters. As you might guess, analytic people tend to choose analytical jobs that require working with numbers such as accountants, financial analysts, auditors and tax consultants. They tend to be left-brain thinkers. You can more easily persuade an analytical home buyer/seller by being fully prepared with data related to the financial or factual side of the home purchase or sale. You can possibly even down-play aesthetic or intuitive matters, like the quality or beauty of the home, it's close proximity to shopping malls or how you are a trustworthy seller/buyer.
Visual People - The visual home buyer/seller will focus on how things look and feel. In terms of buying your home, a visual person may actually give you a better offer than a potential analytical buyer. In terms of selling a home, they will undoubtedly stress the aesthetic pleasantries of the home including the surrounding good neighborhood. Many artists, writers, actors, interior designers and other people who work in creative jobs tend to be art conscious. Usually, visual people tend to be right-brained thinkers. When selling your home to a visual person, consider emphasizing the appearance, condition, and quality of the home.
Intuitive People - Intuitive thinking home buyers/sellers are influenced more by how they feel about the home, you or situation. People who work in jobs that require rapid analysis, diagnosis, and action are often intuitive thinkers. This includes doctors, lawyers, general managers and salespeople. It will go a long way if you work hard to build a strong bond with this type of home buyer/seller. While you should do this with all people, the intuitive home buyer/seller places more value on ensuring they work with people they like and trust.
In reality, this is over simplified because you can't categorize a home buyer/seller into a single personality profile. Everyone has different experiences, emotions, and preferences that influence their behavior and cause them to straddle between the three personality types. The home buying/selling process further complicates the characterization because you are often not dealing directly with the buyer/seller, but rather their real estate agent. Because of the nature of their job, real estate agents must have the capability to straddling all three personality types. However, everyone including the real estate agent will have a stronger preference or alignment with one of the personality types. Once discovered, you can modify your strategy and approach accordingly.
You best learn a home buyer/seller or real estate agent's personality type during small talk and by asking general questions. This can be done casually early in the discussions. As you begin learning more about the home buyer/seller or real estate agent, be thinking about the three personality types and think about comments, questions and/or arguments that will help convince the various types of people. Be aware, just because you are dealing with a visual thinking person, does not mean you can ignore or fudge the financial aspects. Doing so is naive and will leave you vulnerable. Once you determine the type of person you are dealing with, don't act like you have special insight about that person. Continue to act as you would normally while inwardly work on your strategies, comments and arguments to fit the type of person you're dealing with.
http://www.articleco.com/Article/How-to-Analyze-Home-Buyer-Personality-Types-to-Improve-Real-Estate-Negotiations/22757
Analytical People - The analytical home buyer/seller is mostly influenced by financial, statistical and factual matters. As you might guess, analytic people tend to choose analytical jobs that require working with numbers such as accountants, financial analysts, auditors and tax consultants. They tend to be left-brain thinkers. You can more easily persuade an analytical home buyer/seller by being fully prepared with data related to the financial or factual side of the home purchase or sale. You can possibly even down-play aesthetic or intuitive matters, like the quality or beauty of the home, it's close proximity to shopping malls or how you are a trustworthy seller/buyer.
Visual People - The visual home buyer/seller will focus on how things look and feel. In terms of buying your home, a visual person may actually give you a better offer than a potential analytical buyer. In terms of selling a home, they will undoubtedly stress the aesthetic pleasantries of the home including the surrounding good neighborhood. Many artists, writers, actors, interior designers and other people who work in creative jobs tend to be art conscious. Usually, visual people tend to be right-brained thinkers. When selling your home to a visual person, consider emphasizing the appearance, condition, and quality of the home.
Intuitive People - Intuitive thinking home buyers/sellers are influenced more by how they feel about the home, you or situation. People who work in jobs that require rapid analysis, diagnosis, and action are often intuitive thinkers. This includes doctors, lawyers, general managers and salespeople. It will go a long way if you work hard to build a strong bond with this type of home buyer/seller. While you should do this with all people, the intuitive home buyer/seller places more value on ensuring they work with people they like and trust.
In reality, this is over simplified because you can't categorize a home buyer/seller into a single personality profile. Everyone has different experiences, emotions, and preferences that influence their behavior and cause them to straddle between the three personality types. The home buying/selling process further complicates the characterization because you are often not dealing directly with the buyer/seller, but rather their real estate agent. Because of the nature of their job, real estate agents must have the capability to straddling all three personality types. However, everyone including the real estate agent will have a stronger preference or alignment with one of the personality types. Once discovered, you can modify your strategy and approach accordingly.
You best learn a home buyer/seller or real estate agent's personality type during small talk and by asking general questions. This can be done casually early in the discussions. As you begin learning more about the home buyer/seller or real estate agent, be thinking about the three personality types and think about comments, questions and/or arguments that will help convince the various types of people. Be aware, just because you are dealing with a visual thinking person, does not mean you can ignore or fudge the financial aspects. Doing so is naive and will leave you vulnerable. Once you determine the type of person you are dealing with, don't act like you have special insight about that person. Continue to act as you would normally while inwardly work on your strategies, comments and arguments to fit the type of person you're dealing with.
http://www.articleco.com/Article/How-to-Analyze-Home-Buyer-Personality-Types-to-Improve-Real-Estate-Negotiations/22757
Homes in Phoenix Arizona: Investigating the Best Ones
It can be kind of fun to look at homes for sale, and it can be a little bit tiring sometimes as well. It�s hard to separate the feeling of invading someone�s space while at the same time investigating a home to see if it�s right for you. All too often we hold back, not wanting to offend the owners or the real estate agent.
But buying a house is one of the single most important, and expensive, purchases you�ll make in your lifetime. It�s important that you have an opportunity to know exactly what you are getting into � a chance to �kick the tires,� so to speak. What are the most important questions to ask The following are a few suggestions.
How long has this home been listed The amount of time that the home has been listed with real estate agents is important. If the home has been up for sale for several months it could mean several things � the home is over priced, there may be something wrong with the home that other buyers are seeing, or it could mean that the seller is more open to negotiating to sell the home.
Was this home in escrow before (did the sale fall through) If a home did not successfully sell before, that can be very telling. Sometimes a home sale doesn�t go through because the buyer simply can�t qualify for the home. But sometimes the sale doesn�t go through because of a fundamental flaw in the home, something that may be uncovered at the time of the inspection. If the sale didn�t go through, you have every right to ask why.
What is the age of the home When was the home built Older homes may have very solid construction, but they also may have more impending problems that will require maintenance. Newer homes tend to be free of more routine maintenance, certainly major replacement. It doesn�t matter how old the home is, it still needs to be carefully inspected before the sale closes.
Are there any other fees required (besides the sale price and property tax) Some homes are part of a home owner association and the dues for these associations can be quite a sticker shock to the buyers. Always ask about any other fees before you make an offer on the home. Expect to pay real estate taxes every year, and expect that the taxes will increase slightly each year.
When you take the time to ferret out some basic, but vital information about the home, it can really help your decision making process. The more information you have to aid you in your decision making process, the better. When you work with a skilled real estate agent, he or she will be more than happy to find out the information to help you make a decision, and will probably give you suggestions of other things to look for.
Buying a home is a huge purchase � but with the right questions you will have peace of mind that this is the right home for you.
http://www.articleco.com/Article/Homes-in-Phoenix-Arizona--Investigating-the-Best-Ones/14722
But buying a house is one of the single most important, and expensive, purchases you�ll make in your lifetime. It�s important that you have an opportunity to know exactly what you are getting into � a chance to �kick the tires,� so to speak. What are the most important questions to ask The following are a few suggestions.
How long has this home been listed The amount of time that the home has been listed with real estate agents is important. If the home has been up for sale for several months it could mean several things � the home is over priced, there may be something wrong with the home that other buyers are seeing, or it could mean that the seller is more open to negotiating to sell the home.
Was this home in escrow before (did the sale fall through) If a home did not successfully sell before, that can be very telling. Sometimes a home sale doesn�t go through because the buyer simply can�t qualify for the home. But sometimes the sale doesn�t go through because of a fundamental flaw in the home, something that may be uncovered at the time of the inspection. If the sale didn�t go through, you have every right to ask why.
What is the age of the home When was the home built Older homes may have very solid construction, but they also may have more impending problems that will require maintenance. Newer homes tend to be free of more routine maintenance, certainly major replacement. It doesn�t matter how old the home is, it still needs to be carefully inspected before the sale closes.
Are there any other fees required (besides the sale price and property tax) Some homes are part of a home owner association and the dues for these associations can be quite a sticker shock to the buyers. Always ask about any other fees before you make an offer on the home. Expect to pay real estate taxes every year, and expect that the taxes will increase slightly each year.
When you take the time to ferret out some basic, but vital information about the home, it can really help your decision making process. The more information you have to aid you in your decision making process, the better. When you work with a skilled real estate agent, he or she will be more than happy to find out the information to help you make a decision, and will probably give you suggestions of other things to look for.
Buying a home is a huge purchase � but with the right questions you will have peace of mind that this is the right home for you.
http://www.articleco.com/Article/Homes-in-Phoenix-Arizona--Investigating-the-Best-Ones/14722
Home Buyers: How to Have a Smooth Home Purchase
Buying a new home can be an exciting time, whether its your first home or your fifth. However, your savings, your credit rating, and your financial freedom are all on the line when purchasing a new home.
You want to feel comfortable when it is time to sign on the dotted line and feel good about the home you are about to purchase.
Its important not to let your emotions cloud your judgment when you set out to buy what is most likely the largest single item of your life - your new home.
Before you get to actually looking at homes, take the time to establish your needs and wants. Make a careful assessment of what you absolutely must have in your new home compared to what would just be nice.
Be as specific as possible when determining your needs prior to purchase. It will save you much time and concern to do this before looking rather than getting into a new home only to discover that it doesnt meet your needs.
Determine how much you can afford in a home loan and get pre-approved. Set up a budget for monthly payments and be realistic. By assessing your financial situation and getting pre-approved, you can be certain that when you select a new home, you will have the financial backing to get you in as quickly as possible.
When considering the purchase of a home, dont just look at your current financial status. You will probably be in this home for years, and many things can change. Take your future into account as well, looking at such things as job changes and a growing family.
Once you begin the process of searching for a home, dont let emotions cloud your judgment. Just because a house has a nice lawn or some interesting architectural features doesnt mean it is the perfect one for you. While it is important to consider the aesthetics of a property, consider that much of what you see can be changed.
Never judge a house by how the current owner has decorated. Most likely, whatever is inside the house will be gone when the seller leaves, and it will be up to you to paint and decorate.
Take the time to view several homes. This doesnt mean look at every house available on the market, but look at enough properties to get a good feeling that you arent just making an impulse buy. When you find the right home, all the work you do in this process will pay off.
Once you have selected a home that you feel is right, inspect it thoroughly. Be sure the home is inspected by a professional home inspection company, and go over that report with a fine-toothed comb. By taking the time to do this before making the purchase, you can save yourself an endless amount of stress after the fact.
Dont take anything for granted. There are many pitfalls that can surface during the process, and its vital that you take care of these problems before you move in. When inspecting your home, check for working utilities so there are no surprises later on. Check out all costs and expenses before you sign anything.
Taxes, insurance and homeowner dues may appear, and you need to know all of them. Ask as many questions as possible and be very conscious of details.
Use your home-buying team as much as possible. Align yourself with the right real estate professional and you will have an entire team of reliable lenders, title representatives and home inspection companies available to you. Each of these people should work hand in hand with you and each other for your benefit.
Be sure to do a final walk through once all the previous owners furnishings have been moved to be sure of no surprises. Be absolutely positive the property is in exactly the same condition that you agreed upon in the contract. Things that could not have been spotted before are often unintentionally overlooked.
Plan for flexibility. Closing dates are not carved in stone. Allow for certain contingencies and always have a back-up plan in the event that delays occur. These types of circumstances are not at all uncommon in real estate transactions, so it is important that you are prepared for them.
Any and all promises and agreements must be written. If it is not in writing, then assume that it doesnt exist. Even the best of intentions can be unintentionally misinterpreted, so take the time with your REALTOR to be certain that all agreements have been signed on paper.
Remember, your team will work best for you if you are honest and up front with them. Take the time to select the right team of professionals to get you into your new home and do everything possible to make this an enjoyable experience. They will return the favor by getting you into your new home as smoothly as possible.
http://www.articleco.com/Article/Home-Buyers--How-to-Have-a-Smooth-Home-Purchase/16909
You want to feel comfortable when it is time to sign on the dotted line and feel good about the home you are about to purchase.
Its important not to let your emotions cloud your judgment when you set out to buy what is most likely the largest single item of your life - your new home.
Before you get to actually looking at homes, take the time to establish your needs and wants. Make a careful assessment of what you absolutely must have in your new home compared to what would just be nice.
Be as specific as possible when determining your needs prior to purchase. It will save you much time and concern to do this before looking rather than getting into a new home only to discover that it doesnt meet your needs.
Determine how much you can afford in a home loan and get pre-approved. Set up a budget for monthly payments and be realistic. By assessing your financial situation and getting pre-approved, you can be certain that when you select a new home, you will have the financial backing to get you in as quickly as possible.
When considering the purchase of a home, dont just look at your current financial status. You will probably be in this home for years, and many things can change. Take your future into account as well, looking at such things as job changes and a growing family.
Once you begin the process of searching for a home, dont let emotions cloud your judgment. Just because a house has a nice lawn or some interesting architectural features doesnt mean it is the perfect one for you. While it is important to consider the aesthetics of a property, consider that much of what you see can be changed.
Never judge a house by how the current owner has decorated. Most likely, whatever is inside the house will be gone when the seller leaves, and it will be up to you to paint and decorate.
Take the time to view several homes. This doesnt mean look at every house available on the market, but look at enough properties to get a good feeling that you arent just making an impulse buy. When you find the right home, all the work you do in this process will pay off.
Once you have selected a home that you feel is right, inspect it thoroughly. Be sure the home is inspected by a professional home inspection company, and go over that report with a fine-toothed comb. By taking the time to do this before making the purchase, you can save yourself an endless amount of stress after the fact.
Dont take anything for granted. There are many pitfalls that can surface during the process, and its vital that you take care of these problems before you move in. When inspecting your home, check for working utilities so there are no surprises later on. Check out all costs and expenses before you sign anything.
Taxes, insurance and homeowner dues may appear, and you need to know all of them. Ask as many questions as possible and be very conscious of details.
Use your home-buying team as much as possible. Align yourself with the right real estate professional and you will have an entire team of reliable lenders, title representatives and home inspection companies available to you. Each of these people should work hand in hand with you and each other for your benefit.
Be sure to do a final walk through once all the previous owners furnishings have been moved to be sure of no surprises. Be absolutely positive the property is in exactly the same condition that you agreed upon in the contract. Things that could not have been spotted before are often unintentionally overlooked.
Plan for flexibility. Closing dates are not carved in stone. Allow for certain contingencies and always have a back-up plan in the event that delays occur. These types of circumstances are not at all uncommon in real estate transactions, so it is important that you are prepared for them.
Any and all promises and agreements must be written. If it is not in writing, then assume that it doesnt exist. Even the best of intentions can be unintentionally misinterpreted, so take the time with your REALTOR to be certain that all agreements have been signed on paper.
Remember, your team will work best for you if you are honest and up front with them. Take the time to select the right team of professionals to get you into your new home and do everything possible to make this an enjoyable experience. They will return the favor by getting you into your new home as smoothly as possible.
http://www.articleco.com/Article/Home-Buyers--How-to-Have-a-Smooth-Home-Purchase/16909
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