When you buy a home there are numerous steps that are necessary to get the loan closed. Typically the loan process takes two weeks, ten business days, from loan application to closing.
PRE PURCHASE: The real estate agent and buyer begin the search for the home. During this time, the buyer SHOULD begin to search for a lender. There are many choices for lenders today. The buyer should get referrals from the real estate agent or other trusted sources.
DAY 1 | Application — The application occurs during the first day. The buyer applies for a loan and thus becomes a "borrower" and completes the loan application with the information that includes employment and income data for the past two years, financial information on assets and liabilities and any other data that could affect the loan decision. All information must be documented and proven. The days of liar loans are over.
DAY 2-3 | Opening the File — The lender orders the property appraisal and credit report. Verifications of employment, rent or mortgage, and deposits (assets) are submitted to the correct institutions. It may take up to one week to receive these documents. The lender submits the loan to an internal or external processor who reviews the file to ensure the appropriate documents are included in the file. These documents include but are not limited to credit reports, verifications of asset, income and appraisal. In addition, debt and payment histories are reviewed and verified.
DAYS 4-6 | Lender Underwriting — Typically the file must be complete before submitting the file to the underwriter. It's the job of the underwriter to review the entire package. The underwriter must determine if the borrower meets the underwriting guidelines of the loan they're matched with. If the loan was submitted through an automated underwriting engine and the loan was approved, underwriting is a minor formality. However, if there are questions, it is extremely important that the borrower to respond immediately. If the loan is denied, there is still time to switch loans and/or investors.
DAYS 6-8 | Pre-closing — There are several steps during pre-closing including ensuring that title insurance is ordered, approval conditions are met, closing is scheduled, borrower selects their home owner’s insurance provider.
DAYS 9-10 | Closing The loan is ready to close. A Housing and Urban Development Settlement Form is sent to all parties (buyer, seller, lender, and real estate agents). It's reviewed by all parties for accuracy. The borrower obtains loan proceeds and presents certified check for balance of down payment and closing costs.
Borrower becomes a home owner moves into the new home.
We've put together several articles to help your home buying process easy at Denver Agent. Our goal is to help you get the Denver Home of your dreams.
http://EzineArticles.com/?expert=Bradford_Quinn
Monday, October 1, 2007
Buying A Home
It is still the best investment anyone can make for their future. Buying real estate is a solid long term investment and one that can ensure financial security for a lifetime.
The United States real estate market is prime for anyone looking to get a deal on a new home purchase. Builders and mortgage companies are offering incredible deals in an effort to reduce the back log of available homes.
If you are considering a home purchase there are many things to consider but here are a few that many people overlook.
1. School District - If you have kids or are planning a family make sure to take the time to learn about the local school districts and how they compare to national averages.
2. Crime Rate - Looks can be deceiving and the most peaceful looking neighborhood could be right around the corner from an area that is not so desirable and will have an effect on long term home values.
3. Historical Land Use - Did the developer buy an old farm or are we looking at a home that was built on an old landfill?
4. Local Home Values - What have similar homes in the area sold for and how many other homes are on the market? More homes for sale means more bargaining power for potential buyers.
When applying for a home loan be sure to look around and have companies compete for your business. As stated above there are many companies offering tremendous incentives to get your business.
You want to get a home loan that provides the best long term value and once you identify your mortgage company be sure to lock in those rates to protect yourself while you continue your home search.
Finally, enjoy the home buying experience and realize that you are making one of the most important decisions you will ever make in your life. Be sure to pick the home and the mortgage company that work for you.
If you are in the buying process or considering a home purchase you can get more information at the link below:
Home Buying Resources
http://EzineArticles.com/?expert=Steve_Phipps
The United States real estate market is prime for anyone looking to get a deal on a new home purchase. Builders and mortgage companies are offering incredible deals in an effort to reduce the back log of available homes.
If you are considering a home purchase there are many things to consider but here are a few that many people overlook.
1. School District - If you have kids or are planning a family make sure to take the time to learn about the local school districts and how they compare to national averages.
2. Crime Rate - Looks can be deceiving and the most peaceful looking neighborhood could be right around the corner from an area that is not so desirable and will have an effect on long term home values.
3. Historical Land Use - Did the developer buy an old farm or are we looking at a home that was built on an old landfill?
4. Local Home Values - What have similar homes in the area sold for and how many other homes are on the market? More homes for sale means more bargaining power for potential buyers.
When applying for a home loan be sure to look around and have companies compete for your business. As stated above there are many companies offering tremendous incentives to get your business.
You want to get a home loan that provides the best long term value and once you identify your mortgage company be sure to lock in those rates to protect yourself while you continue your home search.
Finally, enjoy the home buying experience and realize that you are making one of the most important decisions you will ever make in your life. Be sure to pick the home and the mortgage company that work for you.
If you are in the buying process or considering a home purchase you can get more information at the link below:
Home Buying Resources
http://EzineArticles.com/?expert=Steve_Phipps
21st Century Home Buying and the Down Payment Dilemma
In the 20th century we used to provide a 5% to 20% down payment when buying a home. A good down payment is not as much in demand for some lenders today. We are constantly bombarded with invitations to buy a home with little or no money down! Some lenders even offer to pay your closing costs!
We hear about these specialty loans every day. They are sold in support of the adjustable rate mortgages, and interest only mortgages that are designed to provide funding to anyone that can "fog a mirror".
In the past, not much happened without a down payment on a home purchase. If we get back to basics, the general expectations would be a down payment of 10% to 20% of the purchase price. The better your credit score the less money needed, depending on your overall package. A down payment of 20% would also eliminate the need for private mortgage insurance (PMI). Getting rid of the PMI is going to save you at least $40 per month on your $100,000 mortgage payment.
A 20% down payment also puts you on much more solid financial ground. This kind of footing makes it possible for you to take maximum advantage of the property appreciation that most real estate investors and home buyers expect.
Another benefit of a good down payment is it mitigates the periodic market reversals that tend to wipe out gains in market value and leave home owners owing more than their property is worth.
I realize that 20% down may seem unattainable for most home buyers. It actually depends on the situation. For example, if you are selling a property that has no mortgage on it, you are an excellent prospect for a 20% cash down payment. Your challenge becomes finding the right buyer. Don't worry, it may not be as difficult as you might think. We can help you think outside the box.
Earlier I mentioned the importance of your credit score. According to the Federal Home Administration, (FHA), "a low down payment is the best predictor of a loan default". Understanding this fact makes it difficult to have much compassion for the so-called "sub-prime lenders" that make poor credit borrowers their primary customers.
Unfortunately too many people have been and continue to be seduced into home buying financial commitments that in too many cases fail. Just look at the news headlines. Every day we read and hear about another sub-prime lender that has suspended making loans, executives have been fired, companies have gone bankrupt, etc.
The human casualties are even greater. RealtyTrac™ (www.realtytrac.com), the leading online marketplace for foreclosure properties, recently released year-end data from its 2006 U.S. Foreclosure Market Report, which shows more than 1.2 million foreclosure filings were reported nationwide during the year, up 42 percent from 2005 and a foreclosure rate of one foreclosure filing for every 92 U.S. households.
As bad as these facts are, things are poised to get worse. In each of the next two years more than $1 trillion in adjustable rate loans are to begin adjusting! The fallout from these events will be widespread.
For every adversity there is an equal or greater benefit. We must prepare ourselves to make the needed changes to take advantage of the constantly evolving housing marketplace.
I think it was Dr. Martin Luther King, Jr. who said, "We are entertwined in the fabric of destiny. That which affects one of us directly affects all of us indirectly."
The USA has the dubious distinction of a national personal savings rate of -1.2%! Our historical average is between 8% and 10% of income.
Until something changes, the late payments, foreclosures, and bankruptcies will continue to run rampant. Instead of becoming easier, home ownership could become more difficult than ever.
One thing that must be done is for each of us to save more money. You may ask, how does a country with a negative personal savings rate find the money to save? We must learn to work smarter, not harder. We must learn to apply our creative genius to the problems facing us. There are easier, faster, and much smarter ways to buy and sell homes, for example, than we realize.
Instead of trying to save money the traditional way, we must learn to really put our money to work for us more quickly and effectively than ever. Here's an idea. Rather than approach the purchase of your next house in the traditional way, you might consider something a little "outside the box".
Property buyers can change your focus from owning to controlling the property. By using very creative and effective techniques, you will need much less cash to control and actually live in the property than the typical 5% to 20% down payment. It's not uncommon to effectively leverage as little as 2% to 7% into 10% or more in equity within as little as one year! This equity acceleration technique can be used effectively before you are even on title. As a matter of fact, using our techniques, you can build more equity in one year than you will get in five years through normal amortizations!
At the same time property sellers can quickly, effectively, and easily solve their debt relief and cash flow problems.
The point is this. If you want to keep getting what you're getting, just keep doing what you're doing. Otherwise change is essential. There are 169 different ways to buy a house, and cash is only one of them.
When you get right down to it, down payments are not a dilemma at all when you get outside of the box. You just have to know where to go, who to ask, and what to do.
Keith Donald is a professional in private real estate financing. He will consult individuals and small businesses in structuring private paper transactions and turning private paper assets into cash. Mr. Donald is available to assist you with the creation, purchase, and sale of real estate notes. He can be contacted at:
http://EzineArticles.com/?expert=Keith_Donald
We hear about these specialty loans every day. They are sold in support of the adjustable rate mortgages, and interest only mortgages that are designed to provide funding to anyone that can "fog a mirror".
In the past, not much happened without a down payment on a home purchase. If we get back to basics, the general expectations would be a down payment of 10% to 20% of the purchase price. The better your credit score the less money needed, depending on your overall package. A down payment of 20% would also eliminate the need for private mortgage insurance (PMI). Getting rid of the PMI is going to save you at least $40 per month on your $100,000 mortgage payment.
A 20% down payment also puts you on much more solid financial ground. This kind of footing makes it possible for you to take maximum advantage of the property appreciation that most real estate investors and home buyers expect.
Another benefit of a good down payment is it mitigates the periodic market reversals that tend to wipe out gains in market value and leave home owners owing more than their property is worth.
I realize that 20% down may seem unattainable for most home buyers. It actually depends on the situation. For example, if you are selling a property that has no mortgage on it, you are an excellent prospect for a 20% cash down payment. Your challenge becomes finding the right buyer. Don't worry, it may not be as difficult as you might think. We can help you think outside the box.
Earlier I mentioned the importance of your credit score. According to the Federal Home Administration, (FHA), "a low down payment is the best predictor of a loan default". Understanding this fact makes it difficult to have much compassion for the so-called "sub-prime lenders" that make poor credit borrowers their primary customers.
Unfortunately too many people have been and continue to be seduced into home buying financial commitments that in too many cases fail. Just look at the news headlines. Every day we read and hear about another sub-prime lender that has suspended making loans, executives have been fired, companies have gone bankrupt, etc.
The human casualties are even greater. RealtyTrac™ (www.realtytrac.com), the leading online marketplace for foreclosure properties, recently released year-end data from its 2006 U.S. Foreclosure Market Report, which shows more than 1.2 million foreclosure filings were reported nationwide during the year, up 42 percent from 2005 and a foreclosure rate of one foreclosure filing for every 92 U.S. households.
As bad as these facts are, things are poised to get worse. In each of the next two years more than $1 trillion in adjustable rate loans are to begin adjusting! The fallout from these events will be widespread.
For every adversity there is an equal or greater benefit. We must prepare ourselves to make the needed changes to take advantage of the constantly evolving housing marketplace.
I think it was Dr. Martin Luther King, Jr. who said, "We are entertwined in the fabric of destiny. That which affects one of us directly affects all of us indirectly."
The USA has the dubious distinction of a national personal savings rate of -1.2%! Our historical average is between 8% and 10% of income.
Until something changes, the late payments, foreclosures, and bankruptcies will continue to run rampant. Instead of becoming easier, home ownership could become more difficult than ever.
One thing that must be done is for each of us to save more money. You may ask, how does a country with a negative personal savings rate find the money to save? We must learn to work smarter, not harder. We must learn to apply our creative genius to the problems facing us. There are easier, faster, and much smarter ways to buy and sell homes, for example, than we realize.
Instead of trying to save money the traditional way, we must learn to really put our money to work for us more quickly and effectively than ever. Here's an idea. Rather than approach the purchase of your next house in the traditional way, you might consider something a little "outside the box".
Property buyers can change your focus from owning to controlling the property. By using very creative and effective techniques, you will need much less cash to control and actually live in the property than the typical 5% to 20% down payment. It's not uncommon to effectively leverage as little as 2% to 7% into 10% or more in equity within as little as one year! This equity acceleration technique can be used effectively before you are even on title. As a matter of fact, using our techniques, you can build more equity in one year than you will get in five years through normal amortizations!
At the same time property sellers can quickly, effectively, and easily solve their debt relief and cash flow problems.
The point is this. If you want to keep getting what you're getting, just keep doing what you're doing. Otherwise change is essential. There are 169 different ways to buy a house, and cash is only one of them.
When you get right down to it, down payments are not a dilemma at all when you get outside of the box. You just have to know where to go, who to ask, and what to do.
Keith Donald is a professional in private real estate financing. He will consult individuals and small businesses in structuring private paper transactions and turning private paper assets into cash. Mr. Donald is available to assist you with the creation, purchase, and sale of real estate notes. He can be contacted at:
http://EzineArticles.com/?expert=Keith_Donald
home buying - "Homes in Phoenix Arizona: Understanding the Buying Process"
If you've never purchased a home before, or need to brush up on the basics of buying a home, we can help. Buying a home is one of the most important things you can do. It's an important step in the process of building your personal wealth. That's why it's so essential to make your decision carefully.
Few people realize how much of a huge chunk of their monthly budget is spent on a mortgage payment. In a national survey, it was discovered that most people spend somewhere between 20% and 40% of their gross income on their monthly mortgage. That's a huge amount of money to spend on one item each month. That's partially why it's so important to have a home that will accrue in value and make the investment worthwhile in the long run.
Before you even begin looking for a home, take the time to find a trustworthy and knowledgeable mortgage loan officer. Unlike mortgages of old, there are a lot more options for home loans than ever before. More people are qualifying for loans than ever, and more people are finding that they can afford more home than they originally thought.
If you work with a mortgage agent, you'll find out about the various loan options. Most agents will pre-approval you for a loan. They start by gathering information about you current financial situation, including all debts and all income. Based on this information, the mortgage professional is able to determine whether there are any potential problems, and approximately how much you'll be able to qualify for.
There's one more step in the process that can really help you when it comes time to buying, and that is to get prequalified. Prequalification is a little more detailed than the standard pre-approval process. When you are prequalified, the mortgage agent has essentially done all the paperwork and credit checks to make sure that you could qualify for a loan at a certain amount. They issue a letter that you can show to sellers. This can be a huge advantage in the sales process because many sellers want to close the house quickly, and are looking for someone that will qualify for a loan quickly.
We stress how important it is to work with a trustworthy mortgage agent. The same can be said for the real estate agent. Both people are an essential part of the sales process and if either makes mistakes, it can cost the buyer thousands of dollars. In fact, it's often a good idea to work with a real estate and mortgage agent that have already established a good working relationship.
When you work with true real estate and mortgage professionals, you can be assured of finding a home that is the best value for you and has the best return on investment. There's no better feeling than home ownership, and it's possible for you to enjoy your new home in Phoenix while beginning to build your financial wealth.
http://www.realestateinvestmentarticles.net/Article/home-buying----Homes-in-Phoenix-Arizona--Understanding-the-Buying-Process-/2976
Few people realize how much of a huge chunk of their monthly budget is spent on a mortgage payment. In a national survey, it was discovered that most people spend somewhere between 20% and 40% of their gross income on their monthly mortgage. That's a huge amount of money to spend on one item each month. That's partially why it's so important to have a home that will accrue in value and make the investment worthwhile in the long run.
Before you even begin looking for a home, take the time to find a trustworthy and knowledgeable mortgage loan officer. Unlike mortgages of old, there are a lot more options for home loans than ever before. More people are qualifying for loans than ever, and more people are finding that they can afford more home than they originally thought.
If you work with a mortgage agent, you'll find out about the various loan options. Most agents will pre-approval you for a loan. They start by gathering information about you current financial situation, including all debts and all income. Based on this information, the mortgage professional is able to determine whether there are any potential problems, and approximately how much you'll be able to qualify for.
There's one more step in the process that can really help you when it comes time to buying, and that is to get prequalified. Prequalification is a little more detailed than the standard pre-approval process. When you are prequalified, the mortgage agent has essentially done all the paperwork and credit checks to make sure that you could qualify for a loan at a certain amount. They issue a letter that you can show to sellers. This can be a huge advantage in the sales process because many sellers want to close the house quickly, and are looking for someone that will qualify for a loan quickly.
We stress how important it is to work with a trustworthy mortgage agent. The same can be said for the real estate agent. Both people are an essential part of the sales process and if either makes mistakes, it can cost the buyer thousands of dollars. In fact, it's often a good idea to work with a real estate and mortgage agent that have already established a good working relationship.
When you work with true real estate and mortgage professionals, you can be assured of finding a home that is the best value for you and has the best return on investment. There's no better feeling than home ownership, and it's possible for you to enjoy your new home in Phoenix while beginning to build your financial wealth.
http://www.realestateinvestmentarticles.net/Article/home-buying----Homes-in-Phoenix-Arizona--Understanding-the-Buying-Process-/2976
home buying - "How to Ask the Right Questions when Buying a Home in Yuma"
Buying a home is one of the most exciting events in your life. But because it is such a rare event, few people truly understand how to go about the process of looking for a new home. Yuma is an amazing place to find a house, and there is a lot you can do to make the process easier than ever.
Most people don't realize that the best way to approach looking for real estate is to make the process all about getting the most information. It's not really about finding a home you love as much as it is about uncovering every detail about the property. Some of the information that you should focus on are the following.
When was the home listed on the real estate market? Many home buyers don't understand why this question is important, but it provides a great deal of information about the home. If a house has been up for sale for a while, it may mean that the sellers are willing to entertain offers and negotiate on price.
Has there been another buyer for the home? If a home has been in escrow before and the sale fell through, it's important to know. This gives a lot of information - there may be a few factors that contribute to the house not selling the first time. It could be that the buyer couldn't arrange financing, or it could mean that there was something wrong that the buyer or a home inspector found in the sale process. It's important to ask why the sale was not completed if the house fell out of escrow.
How old is the home and how has it been maintained? The age of the home is a huge factor - homes built in before the 1960s will be built with quality materials, but you may be looking at some major upgrading of the home. The home may also have some potential problem areas with older materials, such as lead paint, or asbestos roofing materials. A home built in the 60s, 70s and 80s didn't feature the quality of construction that older homes had. Some of these homes aren't quite as distinctive in character, but often have good potential for remodeling and resale. Homes built in the 90s and later are going to be homes that require less initial maintenance and repair. Regardless of the age of the home, you should always have a home inspected by a qualified inspector.
What other fees will you have to pay beside the sales price? All real estate will have real estate taxes that you must pay each year. Before you commit to a home purchase, find out how much the taxes are and how it will affect your budget. Many homes have home owner association dues that the owner must pay each month. Also, many home communities require home association dues. These dues cover community maintenance, such as pool or community rooms, landscaping for the common areas, etc.
Taking the time to find out some vital information can really help you make decisions about what home is best for you. There's far more to evaluating a home than merely looking at the home and the property. Decision making really requires finding out what lies beneath the surface of the home. Work with your real estate agent, gather as much information as you possibly can, and you'll find the home you love in Yuma.
http://www.realestateinvestmentarticles.net/Article/home-buying----How-to-Ask-the-Right-Questions-when-Buying-a-Home-in-Yuma-/2978
Most people don't realize that the best way to approach looking for real estate is to make the process all about getting the most information. It's not really about finding a home you love as much as it is about uncovering every detail about the property. Some of the information that you should focus on are the following.
When was the home listed on the real estate market? Many home buyers don't understand why this question is important, but it provides a great deal of information about the home. If a house has been up for sale for a while, it may mean that the sellers are willing to entertain offers and negotiate on price.
Has there been another buyer for the home? If a home has been in escrow before and the sale fell through, it's important to know. This gives a lot of information - there may be a few factors that contribute to the house not selling the first time. It could be that the buyer couldn't arrange financing, or it could mean that there was something wrong that the buyer or a home inspector found in the sale process. It's important to ask why the sale was not completed if the house fell out of escrow.
How old is the home and how has it been maintained? The age of the home is a huge factor - homes built in before the 1960s will be built with quality materials, but you may be looking at some major upgrading of the home. The home may also have some potential problem areas with older materials, such as lead paint, or asbestos roofing materials. A home built in the 60s, 70s and 80s didn't feature the quality of construction that older homes had. Some of these homes aren't quite as distinctive in character, but often have good potential for remodeling and resale. Homes built in the 90s and later are going to be homes that require less initial maintenance and repair. Regardless of the age of the home, you should always have a home inspected by a qualified inspector.
What other fees will you have to pay beside the sales price? All real estate will have real estate taxes that you must pay each year. Before you commit to a home purchase, find out how much the taxes are and how it will affect your budget. Many homes have home owner association dues that the owner must pay each month. Also, many home communities require home association dues. These dues cover community maintenance, such as pool or community rooms, landscaping for the common areas, etc.
Taking the time to find out some vital information can really help you make decisions about what home is best for you. There's far more to evaluating a home than merely looking at the home and the property. Decision making really requires finding out what lies beneath the surface of the home. Work with your real estate agent, gather as much information as you possibly can, and you'll find the home you love in Yuma.
http://www.realestateinvestmentarticles.net/Article/home-buying----How-to-Ask-the-Right-Questions-when-Buying-a-Home-in-Yuma-/2978
home buying - "Asking the Right Questions when Buying a Home in El Centro"
Buying a home is one of the biggest decisions you'll make in your life. Yet few people have a sense of how to really approach the process, how to make sure that they get their money's worth and are finding a house that's in good shape and free of problems.
One way to make sure the house is right for you is to ask questions about the home, both of the realtor and the seller. These basic questions will help you uncover homes that could be potentially problematic. Let's look at some of the common questions.
How long has the house been on the market? This question seems quite simple, but it really gives buyers a great deal of information. For instance, if a house has been on the market for a while it indicates that the sellers may be more flexible in pricing and willing to entertain offers, or at the very least, negotiate for a fair price.
Has the home been in escrow already? This is important to know. If someone wanted to buy the home already, but couldn't go through with the sale, it may be something as simple as the buyer not being able to arrange financing. Or it could mean that the buyer found something wrong with the home and pulled out. You have every right to find out why the sale didn't go through.
What is the condition of the home? When was the home built? A lot of sellers will try to make cosmetic changes to a home, but they may be to the surface, not true repairs. You need to find out about any potential problems before you buy. You should always have the home inspected to uncover problems that you don't see in a routine examination.
Are there any additional fees besides the home price? Many homes have home owner association dues that the owner must pay each month. Of course, home owners will always have to pay property tax. It's important to know how much tax and any other fees will be before you buy.
What's the traffic like in the neighborhood? Is there a steady stream of commuters that are trying to get onto the freeway? Are there new highways or roads being planned? Are there new housing developments planned in the area. More developments mean the house is in a community that is in high demand, which is good in terms of retail pricing, but it also means that there will be substantially more traffic.
Asking a few questions before you buy can save you a world of regrets after the sale is finished, and can save you a lot of money. More information gives you better buying power to enjoy your new home.
http://www.realestateinvestmentarticles.net/Article/home-buying----Asking-the-Right-Questions-when-Buying-a-Home-in-El-Centro-/2994
One way to make sure the house is right for you is to ask questions about the home, both of the realtor and the seller. These basic questions will help you uncover homes that could be potentially problematic. Let's look at some of the common questions.
How long has the house been on the market? This question seems quite simple, but it really gives buyers a great deal of information. For instance, if a house has been on the market for a while it indicates that the sellers may be more flexible in pricing and willing to entertain offers, or at the very least, negotiate for a fair price.
Has the home been in escrow already? This is important to know. If someone wanted to buy the home already, but couldn't go through with the sale, it may be something as simple as the buyer not being able to arrange financing. Or it could mean that the buyer found something wrong with the home and pulled out. You have every right to find out why the sale didn't go through.
What is the condition of the home? When was the home built? A lot of sellers will try to make cosmetic changes to a home, but they may be to the surface, not true repairs. You need to find out about any potential problems before you buy. You should always have the home inspected to uncover problems that you don't see in a routine examination.
Are there any additional fees besides the home price? Many homes have home owner association dues that the owner must pay each month. Of course, home owners will always have to pay property tax. It's important to know how much tax and any other fees will be before you buy.
What's the traffic like in the neighborhood? Is there a steady stream of commuters that are trying to get onto the freeway? Are there new highways or roads being planned? Are there new housing developments planned in the area. More developments mean the house is in a community that is in high demand, which is good in terms of retail pricing, but it also means that there will be substantially more traffic.
Asking a few questions before you buy can save you a world of regrets after the sale is finished, and can save you a lot of money. More information gives you better buying power to enjoy your new home.
http://www.realestateinvestmentarticles.net/Article/home-buying----Asking-the-Right-Questions-when-Buying-a-Home-in-El-Centro-/2994
home buying - "Home Buyers: How to Have a Smooth Home Purchase
Buying a new home can be an exciting time, whether it´s 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.
It´s 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 doesn´t 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, don´t 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, don´t let emotions cloud your judgment. Just because a house has a nice lawn or some interesting architectural features doesn´t 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 doesn´t mean look at every house available on the market, but look at enough properties to get a good feeling that you aren´t 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.
Don´t take anything for granted. There are many pitfalls that can surface during the process, and it´s 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 owner´s 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 doesn´t 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.realestateinvestmentarticles.net/Article/home-buying----Home-Buyers--How-to-Have-a-Smooth-Home-Purchase-/3099
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.
It´s 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 doesn´t 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, don´t 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, don´t let emotions cloud your judgment. Just because a house has a nice lawn or some interesting architectural features doesn´t 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 doesn´t mean look at every house available on the market, but look at enough properties to get a good feeling that you aren´t 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.
Don´t take anything for granted. There are many pitfalls that can surface during the process, and it´s 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 owner´s 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 doesn´t 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.realestateinvestmentarticles.net/Article/home-buying----Home-Buyers--How-to-Have-a-Smooth-Home-Purchase-/3099
home buying - "Home Buyers: How to Avoid Costly Mistakes!"
There are some simple steps that homebuyers often miss when looking for their new home. Taking the time to consider these steps can save you thousands of dollars, but more importantly, can smooth the process of buying a new home, saving time and money, as well as alleviating stressful situations in advance.
1. Begin by being up front and honest with your REALTOR and lender about your credit history. Your credit, whether good or bad, affects everything from your down payment to your interest rates. Your REALTOR or a professional mortgage consultant can often advise you as to how you can get credit problems cleared up or completely eliminated from your credit report before you apply for financing or make an offer on a new home.
2. Getting pre-qualified for a loan by a professional lender before you begin your search for a new home will allow you to know in advance exactly what kind, and how much, mortgage you can afford. This makes it possible for you to make an offer on your new home with confidence that enough funding is available.
3. If the seller does not offer a home warranty on the house you want, ask your REALTOR to make it a part of the written offer that you make. A home warranty can save you thousands of dollars in repairs, and can often be obtained for a very nominal annual fee. A standard warranty covers the electrical, plumbing, heating and air conditioning systems as well as major home appliances.
4. Ask your REALTOR for a market analysis of the home, in comparison to similar homes in the neighborhood or throughout the city, before you make an offer. A home is not just a place where you live - it is also an investment. Take the time to view several homes before you make an offer so you know exactly what is on the market. Be certain you are making a wise investment.
5. Make your offer contingent upon a home inspection and ask the seller to make the required repairs. Hire a professional to inspect every aspect of the home thoroughly. This can save you thousands of dollars in costly repairs and many headaches in the future. A good inspection can also allow you to negotiate for any repairs prior to closing. If the seller is not willing to make the necessary repairs, remind them that the lender will also require the home to be in good condition before they make a loan for the purchase.
6. Take into account your present homeowner or renter status. If you already own a home and must sell it before you buy a new one, it is best to get a REALTOR to do a complete market analysis on your present home. This allows you to know how much you can sell your current home for before you make an offer on a new one. If you are leasing or renting, the lease's expiration date will give you a timetable for your new purchase. Review this with your REALTOR well in advance of when you want to move.
7. Choose your agent wisely. Working with a full-time professional real estate agent is a must. Ask questions of your agent. Find out how knowledgeable he or she is about houses currently for sale in your price range and also of houses that have recently sold. Can your agent recommend a good lender that has the reputation of excellent customer service and low rates? Does your agent ask questions of you to have a full understanding of what you are looking for and to help you get the most home for the money?
http://www.realestateinvestmentarticles.net/Article/home-buying----Home-Buyers--How-to-Avoid-Costly-Mistakes--/3100
1. Begin by being up front and honest with your REALTOR and lender about your credit history. Your credit, whether good or bad, affects everything from your down payment to your interest rates. Your REALTOR or a professional mortgage consultant can often advise you as to how you can get credit problems cleared up or completely eliminated from your credit report before you apply for financing or make an offer on a new home.
2. Getting pre-qualified for a loan by a professional lender before you begin your search for a new home will allow you to know in advance exactly what kind, and how much, mortgage you can afford. This makes it possible for you to make an offer on your new home with confidence that enough funding is available.
3. If the seller does not offer a home warranty on the house you want, ask your REALTOR to make it a part of the written offer that you make. A home warranty can save you thousands of dollars in repairs, and can often be obtained for a very nominal annual fee. A standard warranty covers the electrical, plumbing, heating and air conditioning systems as well as major home appliances.
4. Ask your REALTOR for a market analysis of the home, in comparison to similar homes in the neighborhood or throughout the city, before you make an offer. A home is not just a place where you live - it is also an investment. Take the time to view several homes before you make an offer so you know exactly what is on the market. Be certain you are making a wise investment.
5. Make your offer contingent upon a home inspection and ask the seller to make the required repairs. Hire a professional to inspect every aspect of the home thoroughly. This can save you thousands of dollars in costly repairs and many headaches in the future. A good inspection can also allow you to negotiate for any repairs prior to closing. If the seller is not willing to make the necessary repairs, remind them that the lender will also require the home to be in good condition before they make a loan for the purchase.
6. Take into account your present homeowner or renter status. If you already own a home and must sell it before you buy a new one, it is best to get a REALTOR to do a complete market analysis on your present home. This allows you to know how much you can sell your current home for before you make an offer on a new one. If you are leasing or renting, the lease's expiration date will give you a timetable for your new purchase. Review this with your REALTOR well in advance of when you want to move.
7. Choose your agent wisely. Working with a full-time professional real estate agent is a must. Ask questions of your agent. Find out how knowledgeable he or she is about houses currently for sale in your price range and also of houses that have recently sold. Can your agent recommend a good lender that has the reputation of excellent customer service and low rates? Does your agent ask questions of you to have a full understanding of what you are looking for and to help you get the most home for the money?
http://www.realestateinvestmentarticles.net/Article/home-buying----Home-Buyers--How-to-Avoid-Costly-Mistakes--/3100
home buying - "Some Tips To Help You Understand Real Estate Buyer Agreements"
There are few things that are as stressful as buying a home, especially for the first time. There are so many things to consider, such as the size of the home, the location it is in and whether it has a good school district. Many purchasers opt to have a real estate brokerage represent them in the sale. The responsibility of a person licensed to practice real estate is to act as a liaison between the selling and purchasing parties to the transaction. An agreement must be signed by the agency and the purchaser in order for the licensee to represent them during the course of the transaction.
The written agreement between an agent and a client must be clearly detailed, prior to any transaction taking place. This includes the names and addresses of both the purchaser and the company agreeing to represent them. It may also detail such things as the estimated price range of the purchaser as well as any contingencies they may have. For example, one contingency may be that they are already considering a certain home from a person without any agency representation, such as a friend or relative. The agreement would state that if they decide to buy that house or any house that was previously looked at prior to the agency agreement, the agency would not be entitled to any form of compensation.
This can also include the homes that the purchaser has looked at, that had a seller who was represented by an agency, but the purchaser did not have representation at the time of the viewing. This is why it is so important for a buyer to be clear when detailing to a prospective broker or agent, any type of contingencies that they may have. Brokers usually have pre written agency agreements and there are usually several kinds that the buyer can choose from.
The exclusive Right to Represent Buyer/Broker Agency agreement is the one that is typically used to detail the agreement between the buyer and the agent. In this agreement, the purchaser consents to allow the agent to represent them on an exclusive level. It also details the amount of commission the purchaser agrees to pay for the service, as well as the length of time the agent is given to represent them.
The Non Exclusive/Not for Compensation agreement also details what is expected of the agent. In this agreement there is no specification of the amount of commission to be paid and the purchaser retains the right to use more than one agent.
The Non Exclusive Right to Represent agreement also details the requisite obligations of the agent but also includes an agreed upon commission to be paid. The purchaser still retains the right to use other agencies.
http://www.realestateinvestmentarticles.net/Article/home-buying----Some-Tips-To-Help-You-Understand-Real-Estate-Buyer-Agreements-/3102
The written agreement between an agent and a client must be clearly detailed, prior to any transaction taking place. This includes the names and addresses of both the purchaser and the company agreeing to represent them. It may also detail such things as the estimated price range of the purchaser as well as any contingencies they may have. For example, one contingency may be that they are already considering a certain home from a person without any agency representation, such as a friend or relative. The agreement would state that if they decide to buy that house or any house that was previously looked at prior to the agency agreement, the agency would not be entitled to any form of compensation.
This can also include the homes that the purchaser has looked at, that had a seller who was represented by an agency, but the purchaser did not have representation at the time of the viewing. This is why it is so important for a buyer to be clear when detailing to a prospective broker or agent, any type of contingencies that they may have. Brokers usually have pre written agency agreements and there are usually several kinds that the buyer can choose from.
The exclusive Right to Represent Buyer/Broker Agency agreement is the one that is typically used to detail the agreement between the buyer and the agent. In this agreement, the purchaser consents to allow the agent to represent them on an exclusive level. It also details the amount of commission the purchaser agrees to pay for the service, as well as the length of time the agent is given to represent them.
The Non Exclusive/Not for Compensation agreement also details what is expected of the agent. In this agreement there is no specification of the amount of commission to be paid and the purchaser retains the right to use more than one agent.
The Non Exclusive Right to Represent agreement also details the requisite obligations of the agent but also includes an agreed upon commission to be paid. The purchaser still retains the right to use other agencies.
http://www.realestateinvestmentarticles.net/Article/home-buying----Some-Tips-To-Help-You-Understand-Real-Estate-Buyer-Agreements-/3102
home buying - "Alternative Methods Of Home Ownership"
In today’s busy world, the multitude of daily tasks we perform during the course of a day can become overwhelming. At work, at home, and everywhere in between lie countless chores and errands. We find ourselves harried from the stresses, and barely have time to spend with our own family members. But, when a few moments arise during which we can relax and take breather with one another, we want to kick back and enjoy the pleasures of our very own homes.
At the same time those of us who desire to but have not yet purchased watch with consternation as housing prices soar. We aspire towards homeownership, but much to our dismay find ourselves financially blocked out of the housing market. What and where are the housing alternatives that would fit into a future homeowner's budget? Many people in this concerned group have read about structures that are built offsite in factories. They harbor suspicions that the savings in site labor just might be able to turn their dreams of home ownership into realities. But they aren’t sure where to find more facts. Of course they could go online and wade through 50,000 alternative housing websites .... but most cannot afford to take on such a lengthy research project.
These people seem to have been anxiously awaiting the arrival of the Directory of Offsite-built Homes USA. This guide takes the prospective homeowner right to the real thing. Offsite-built.com references some 25,238 models which are assembled on, but not constructed on, the homeowner's land. These buildings are at the cutting edge of a wave that will keep cresting well into the future. Modular homes, manufactured, panelized, log, precut, steel-frame, timber-frame, cedar, geodesic and circular home packages: the full gamut of buildings which represent progress, higher precision, less environmental waste, better quality and which can save a person a very hefty sum when building a new home.
This snappy site offers highly organized information about the fascinating world of pre-built structures. The person who is “googling”; for affordable housing - and who stumbles upon this free compilation of locality-based information without the need to search through thousands of sites might find this site to be the proverbial pot of gold at the end of the rainbow.
By creating an environment which provides a safe way of communicating with suppliers, it gives new home buyers a simple way to receive price quotes, floor plans, catalogs, and special offers - an easy head-start in finding suitable home packages.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-articles---home-buying----Alternative-Methods-Of-Home-Ownership-/3973
At the same time those of us who desire to but have not yet purchased watch with consternation as housing prices soar. We aspire towards homeownership, but much to our dismay find ourselves financially blocked out of the housing market. What and where are the housing alternatives that would fit into a future homeowner's budget? Many people in this concerned group have read about structures that are built offsite in factories. They harbor suspicions that the savings in site labor just might be able to turn their dreams of home ownership into realities. But they aren’t sure where to find more facts. Of course they could go online and wade through 50,000 alternative housing websites .... but most cannot afford to take on such a lengthy research project.
These people seem to have been anxiously awaiting the arrival of the Directory of Offsite-built Homes USA. This guide takes the prospective homeowner right to the real thing. Offsite-built.com references some 25,238 models which are assembled on, but not constructed on, the homeowner's land. These buildings are at the cutting edge of a wave that will keep cresting well into the future. Modular homes, manufactured, panelized, log, precut, steel-frame, timber-frame, cedar, geodesic and circular home packages: the full gamut of buildings which represent progress, higher precision, less environmental waste, better quality and which can save a person a very hefty sum when building a new home.
This snappy site offers highly organized information about the fascinating world of pre-built structures. The person who is “googling”; for affordable housing - and who stumbles upon this free compilation of locality-based information without the need to search through thousands of sites might find this site to be the proverbial pot of gold at the end of the rainbow.
By creating an environment which provides a safe way of communicating with suppliers, it gives new home buyers a simple way to receive price quotes, floor plans, catalogs, and special offers - an easy head-start in finding suitable home packages.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-articles---home-buying----Alternative-Methods-Of-Home-Ownership-/3973
home buying - "Feng Shui in Real Estate - The Location and Lot"
What do you know about Feng Shui? If you’re like most people, you probably are not even sure if I spelled it right just now. Maybe you picture an old man doing the world’s slowest kung fu at dawn (that’s Tai Chi, totally different.) Feng shui is a sorta guidebook about the placement and architecture of a house to allow good flow of energy. And it's not just placement of the bed and couch. The placement of the actual house and landscaping will affect the ch’i (energy) of the house in a big way. Let's start with a few tips to bear in mind when looking examining the location for your dream home.
1. First and most important, research the history of a property. Find out what happened with the previous tenants, and the ones before them. And even the ones before them. Ask neighbors, or selling agent. If all the previous inhabitants have had money problems, family problems, etc., chances are there’s bad feng shui going on. Best to move on and look for another house.
2. Pay attention to the road placement. The road in front of your house should not be pointing directly into your home. If a house is sitting at a dead end, in a T-intersection, or in the center of cul-de-sac, then energy is constantly flowing straight down that road into the house, then building up and stagnating there. This is not good; the ch’i must continue to flow, like air. If it gets stuck in your home, it can go bad.
3. Pay attention to what’s around the house. Examine the terrain closely. Ideally, the property should have a dark turtle in the back (a mountain or hill, another house, a row of trees, a fence, etc.), a dragon (a house, a tree) to the left, a white tiger (a smaller house or tree) to the right, and a phoenix (open ground, a circular flowerbed, a meandering river or road) in front. All those exotic names are just a fun way to state the obvious —a house by itself is not ideal, since there is nothing to slow the flow of ch’i. Most houses will have all of these things around them already, but it doesn’t hurt to think about it your first time seeing a place. Other things to think about are “poison arrows,” like telephone poles, flagpoles, or the corner of a house pointing your way. They can hinder the energy flow to the house. Even a hospital can be a source of bad energy.
4. Something that probably doesn’t automatically spring to mind is the shape of the property; but that can be very important as well. Always go for something symmetrical, like a square or a rectangle. If your real estate is pretty close to square, use hedges to fill in the spots that make it irregular. Triangle-shaped properties can create disharmony. If you just love a place and absolutely have to have a it but it’s on a triangle-shaped lot, it’s better for the wide side to be in the back; the other way indicates an inability to save money.
When you visit a property, notice the shapes of the things around. I know it sounds strange, but kind of squint your eyes and see what you see, like you used to do as a kid, when you were looking at the clouds in the sky. If anything looks like something hostile, then be careful. That could be an indication of some anti-ch'i. You want enough stuff to slow the energy down to capture it but allow it to also flow.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-articles---home-buying----Feng-Shui-in-Real-Estate---The-Location-and-Lot-/3974
1. First and most important, research the history of a property. Find out what happened with the previous tenants, and the ones before them. And even the ones before them. Ask neighbors, or selling agent. If all the previous inhabitants have had money problems, family problems, etc., chances are there’s bad feng shui going on. Best to move on and look for another house.
2. Pay attention to the road placement. The road in front of your house should not be pointing directly into your home. If a house is sitting at a dead end, in a T-intersection, or in the center of cul-de-sac, then energy is constantly flowing straight down that road into the house, then building up and stagnating there. This is not good; the ch’i must continue to flow, like air. If it gets stuck in your home, it can go bad.
3. Pay attention to what’s around the house. Examine the terrain closely. Ideally, the property should have a dark turtle in the back (a mountain or hill, another house, a row of trees, a fence, etc.), a dragon (a house, a tree) to the left, a white tiger (a smaller house or tree) to the right, and a phoenix (open ground, a circular flowerbed, a meandering river or road) in front. All those exotic names are just a fun way to state the obvious —a house by itself is not ideal, since there is nothing to slow the flow of ch’i. Most houses will have all of these things around them already, but it doesn’t hurt to think about it your first time seeing a place. Other things to think about are “poison arrows,” like telephone poles, flagpoles, or the corner of a house pointing your way. They can hinder the energy flow to the house. Even a hospital can be a source of bad energy.
4. Something that probably doesn’t automatically spring to mind is the shape of the property; but that can be very important as well. Always go for something symmetrical, like a square or a rectangle. If your real estate is pretty close to square, use hedges to fill in the spots that make it irregular. Triangle-shaped properties can create disharmony. If you just love a place and absolutely have to have a it but it’s on a triangle-shaped lot, it’s better for the wide side to be in the back; the other way indicates an inability to save money.
When you visit a property, notice the shapes of the things around. I know it sounds strange, but kind of squint your eyes and see what you see, like you used to do as a kid, when you were looking at the clouds in the sky. If anything looks like something hostile, then be careful. That could be an indication of some anti-ch'i. You want enough stuff to slow the energy down to capture it but allow it to also flow.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-articles---home-buying----Feng-Shui-in-Real-Estate---The-Location-and-Lot-/3974
home buying - "Selecting a Good Price for Your Home Purchase"
Establishing a good price to offer on the home you have selected is a big step in reaching the goal of actually buying the right home for you. Your Realtor has helped you select the right Lender for your portfolio and has also worked with you ((to)) select a good neighborhood and to understand the current dynamics of your real estate market. Now you need to begin to put all this together to craft a price point to use in ((your)) negotiations with the Seller. Selecting a good price to submit as your offer is a key point to your success in securing a contract and in closing the transaction. In addition to the price, there are other important factors to consider at this time, such as amount of down payment, options, contingencies, a feasibility period, etc. but first let's consider the price point.
The price point is the maximum price you are both willing and able to pay for the home selected. How much are you willing to pay for right house? How much are you able to pay? These numbers may vary depending on the transaction at hand. For example, for a multitude of great reasons, you may absolutely want the house. So, you are willing to pay "what-ever-it-takes" to close the sale; but in reality you are only able to afford a finite amount. Or, you have a letter of credit that ensures you are able to afford any house you want but how much are you willing to pay for this size house, in this neighborhood at this time in the market cycle?
The "Right" price brings your willingness and ability in sync and is a price that will keep the Seller at the table to agree to a Contract for the Sale. It should reflect current and expected market conditions and be reasonable. You do not want to insult the Seller who listed the house at their (hopefully realistic) price point and you do want to open the door to negotiation. At the same time some sellers are unrealistic about price or don't accept that they might be in a poor market. At this point you need to look for a seller with more reasonable expectations. Once your price point is defined you are almost ready to make an offer. You should now review you financing strategy and determine how much of a down payment you want to make. With a large down payment, the amount to be financed will be less. Your willingness to select the right down payment amount will impact your ability to hit your price point.
Unless you are going to pay cash for the house you will need to make a down payment of 0 - 25% of the sale price and finance the remainder. If you have great cash reserves to put at-risk, a 0% down payment may be available. A 20% down payment may be required in order to avoid mortgage insurance payments. In other instances, the down payment is a fixed percentage of the Sales price, perhaps 5% or 10% and has been pre-determined by the Seller or the Seller's Agent or perhaps the Lender. Discuss this with your Realtor, and then move forward with a clear understanding of your financing plan.
In addition to price and down payment, you may want your offer to include a contingency on finalizing your financing, or on your ability to sell you current residence, or in consideration of other factors. The sale may also require an appraisal, a survey, an inspection, definitely a title search and possibly a feasibility period. (The feasibility period is a defined period of time in which you verify certain factors and information to determine the impact all this new information has upon you decision to purchase.) Your Realtor will be able to help you with all of these considerations. It is very important to have selected a Good Realtor early in the process.
Armed with this information, you are now ready to make an offer. Remember, the offer will include a sales price and any option or feasibility period, general financing or other contingencies. The seller will respond with acceptance or a counter. Should the seller counter, then you do a bit of back and forth negotiations until you come to agreement on your contract to purchase. With the negotiated agreement all parties will sign and initial, contingencies excepting, a closing date will be set.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-articles---home-buying----Selecting-a-Good-Price-for-Your-Home-Purchase-/3976
The price point is the maximum price you are both willing and able to pay for the home selected. How much are you willing to pay for right house? How much are you able to pay? These numbers may vary depending on the transaction at hand. For example, for a multitude of great reasons, you may absolutely want the house. So, you are willing to pay "what-ever-it-takes" to close the sale; but in reality you are only able to afford a finite amount. Or, you have a letter of credit that ensures you are able to afford any house you want but how much are you willing to pay for this size house, in this neighborhood at this time in the market cycle?
The "Right" price brings your willingness and ability in sync and is a price that will keep the Seller at the table to agree to a Contract for the Sale. It should reflect current and expected market conditions and be reasonable. You do not want to insult the Seller who listed the house at their (hopefully realistic) price point and you do want to open the door to negotiation. At the same time some sellers are unrealistic about price or don't accept that they might be in a poor market. At this point you need to look for a seller with more reasonable expectations. Once your price point is defined you are almost ready to make an offer. You should now review you financing strategy and determine how much of a down payment you want to make. With a large down payment, the amount to be financed will be less. Your willingness to select the right down payment amount will impact your ability to hit your price point.
Unless you are going to pay cash for the house you will need to make a down payment of 0 - 25% of the sale price and finance the remainder. If you have great cash reserves to put at-risk, a 0% down payment may be available. A 20% down payment may be required in order to avoid mortgage insurance payments. In other instances, the down payment is a fixed percentage of the Sales price, perhaps 5% or 10% and has been pre-determined by the Seller or the Seller's Agent or perhaps the Lender. Discuss this with your Realtor, and then move forward with a clear understanding of your financing plan.
In addition to price and down payment, you may want your offer to include a contingency on finalizing your financing, or on your ability to sell you current residence, or in consideration of other factors. The sale may also require an appraisal, a survey, an inspection, definitely a title search and possibly a feasibility period. (The feasibility period is a defined period of time in which you verify certain factors and information to determine the impact all this new information has upon you decision to purchase.) Your Realtor will be able to help you with all of these considerations. It is very important to have selected a Good Realtor early in the process.
Armed with this information, you are now ready to make an offer. Remember, the offer will include a sales price and any option or feasibility period, general financing or other contingencies. The seller will respond with acceptance or a counter. Should the seller counter, then you do a bit of back and forth negotiations until you come to agreement on your contract to purchase. With the negotiated agreement all parties will sign and initial, contingencies excepting, a closing date will be set.
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