Buying a home is not something that you wake up one morning and decide to do between your lunch appointment and your child's soccer practice. The process of becoming a homeowner requires research, planning, and even a little bit of legwork. The first step would be to find out if you can afford properties in your area (or the area that you are moving to). Sadly, this often means settling for a house that is not quite your first choice (a condo instead of that three-bedroom house), but everyone needs to start somewhere.
A loan officer can help you determine how much of a loan you will qualify for (and be able to afford). Ask him or her if the pre-qualification is free. Many loan officers will gladly sit down and hash the numbers out with you for free in the hopes of selling you the loan. Once you have determined how much you can afford, you get to go shopping.
With the internet being as common a tool as the phone book (maybe more so), you will be able to find a significant number of listings for real estate agents in your area online. You will also be able to find a large number of properties and their descriptions and amenities, using the internet as your own personal tool, you will be able to narrow your options down to the properties that you really want to check out, and then contact an agent to show you around. Be choosy as to whom you ask to show a property to you. As the agent that generates interest in a property will be able to claim commission if you choose to buy the property and it's important that they have your best interest in mind and not just the dollar amount that they will pocket after the sale. Under any circumstances should you use the seller's agent as your buying agent. This person would be legally responsible for getting the seller (not you) the best deal possible.
Looking at houses is the fun part for most, and the most painful part for some. No matter how you feel about the process, though, it is important to ask every question you can think of. Bringing someone who has bought a house before might be helpful, as they can suggest things that you would never think to check. Do the toilets all flush? Do the sinks drain? Are the owners leaving that fridge, or do I have to buy one? All of these are important questions to ask before you buy a home because they effect the resale value or the home.
Once you have chosen the property of your dreams, or the one that you can comfortably afford, you will submit a bid proposal through your real estate agent, who will guide you through every detail of the buying process. Over the next month or so you will be forced to endure bidding and counter bidding until a deal is chosen, followed by hours (yes, I mean hours) of paperwork. There are scores of pages of paperwork to be filled out and signed detailing the duties of buyer and seller; assigning, hiring, and evaluating the results of inspectors; detailing property condition and duties related to the condition (like repairing a crack in a wall); as well as much more. With luck and flexibility on your part, the deal can be sealed in about a month, although it usually takes a little longer.
Remember that loan consultant? Once a price has been agreed upon, you will work with your consultant to actually get the loan approved for your new home. He or she will require (you guessed it) more paperwork from you. Grit your teeth and have him fax your approval over to your agent. Sealing the deal requires even more hours of signatures.
Like childbirth, the pain of the process of buying a home is worth the joy and excitement you will feel as soon as it is all said and done. At least until you realize how much money you owe. However owning a home is both financially and personally rewarding.
http://www.realestateinvestmentarticles.net/Article/home-buying----How-To-Buy-A-Home-/2388
Thursday, October 4, 2007
home buying - "Down Payments - Develop a Plan"
Do you have the money to put a down payment on a new home? Before you immediately say "no", and get discouraged, take some time to read through the following tips and options that are available to perspective homeowners. Perhaps they can help you out in a small or a very great way!
If you already have money saved up in a checking account, savings account, or a money market account, you have an advantage to getting a loan. These funds are considered liquid funds because you have immediate access to them to put on your down payment. A bank or lender will see that you have the money and that you are stable enough with your finances to pay back on the loan.
Stocks, mutual funds, and bonds are also great ways to finance a down payment for a mortgage loan. When selling these things, however, make sure that you keep all of the documents that are proof of sale. Your lender may want to see these.
If a member of your family provides you with the money to make a down payment for your mortgage loan, you will have to fill out a gift letter, which is a statement that points out you are related to the person who gave you the funds. The gift letter may also include the amount of funds gifted as well as where the person who gave you the funds got the money from. You and the family member will have to sign the gift letter documentation.
You may also get money for a mortgage loan down payment from your retirement funds, if you have any. These funds are commonly known as 401k funds. Remember, though, that if you borrow from your 401k funds for a down payment, your lender may consider them to be additional debt that you owe. This may have an effect on how much of a loan that you qualify for. If you decide to cash out your 401k funds to avoid this situation, you will most likely be hit with large tax penalties. So, before you decide to use your 401k funds for a down payment, be sure that you realize everything that is at stake.
Another way to finance a down payment for your mortgage is to sell some of your personal property. For example, you can sell your car or an expensive piece of jewelry to get the funds that you need. The only thing you must be aware of in this situation is that you must keep detailed receipts of everything to prove that you once owned these items. It may be best to have the buyers of your possessions pay with checks instead of cash. This will help keep the records that your lender may ask for.
Asking your employer for assistance for a down payment is also an option that may be available to you - depending on your employer's policies. And, as usual, you must have a detailed paperwork trail for this, so that your lender can see exactly what is going on.
http://www.realestateinvestmentarticles.net/Article/home-buying----Down-Payments---Develop-a-Plan-/1943
If you already have money saved up in a checking account, savings account, or a money market account, you have an advantage to getting a loan. These funds are considered liquid funds because you have immediate access to them to put on your down payment. A bank or lender will see that you have the money and that you are stable enough with your finances to pay back on the loan.
Stocks, mutual funds, and bonds are also great ways to finance a down payment for a mortgage loan. When selling these things, however, make sure that you keep all of the documents that are proof of sale. Your lender may want to see these.
If a member of your family provides you with the money to make a down payment for your mortgage loan, you will have to fill out a gift letter, which is a statement that points out you are related to the person who gave you the funds. The gift letter may also include the amount of funds gifted as well as where the person who gave you the funds got the money from. You and the family member will have to sign the gift letter documentation.
You may also get money for a mortgage loan down payment from your retirement funds, if you have any. These funds are commonly known as 401k funds. Remember, though, that if you borrow from your 401k funds for a down payment, your lender may consider them to be additional debt that you owe. This may have an effect on how much of a loan that you qualify for. If you decide to cash out your 401k funds to avoid this situation, you will most likely be hit with large tax penalties. So, before you decide to use your 401k funds for a down payment, be sure that you realize everything that is at stake.
Another way to finance a down payment for your mortgage is to sell some of your personal property. For example, you can sell your car or an expensive piece of jewelry to get the funds that you need. The only thing you must be aware of in this situation is that you must keep detailed receipts of everything to prove that you once owned these items. It may be best to have the buyers of your possessions pay with checks instead of cash. This will help keep the records that your lender may ask for.
Asking your employer for assistance for a down payment is also an option that may be available to you - depending on your employer's policies. And, as usual, you must have a detailed paperwork trail for this, so that your lender can see exactly what is going on.
http://www.realestateinvestmentarticles.net/Article/home-buying----Down-Payments---Develop-a-Plan-/1943
home buying - "Determining Your Offer Price"
Determining the price that you are planning to offer buyers is probably one of the most important decisions that you need to make, while selling your Florida home. The offer price should be such that it reflects the real value of your home. Overpricing your offer is not recommended because buyers are usually well informed and might have already visited other similar properties in the neighborhood. After a few weeks, your property listing is bound to lose appeal if it is overpriced. In comparison, making, an offer below the market price will not pose a problem. Properties that are listed below their market price receive multiple offers and this in turn affects the price.
Compare past property listings:
For determining the most appropriate offer price for your Florida home, you can start by looking at offer prices of other properties in the neighborhood that have been listed over the past six months. You need to select only those properties that are located in the same street or locality. You need to understand that even if there are similar properties in the locality, their market prices often vary depending on their proximity to main streets, freeways and railroads. You need to select only those properties that were more or less built during the same time as your own home.
Adjust the offer price:
In order to make the right offer, you need to compare property listing price offers with the actual sale prices to determine price reductions or increments. This way, you can make similar adjustments to your offer price. If your Florida home has extra amenities or upgrades, you can adjust your offer price accordingly. While studying past property listings, try to ascertain the reasons as to why some properties were sold at higher prices and why some were sold at lower prices. This will help you in making the required changes to your home, necessary for making a high offer price.
Adjust for existing demand-supply situation:
After going through past and present listings and determining an offer price, you need to make adjustments for the current demand-supply scenario existing in the local property market. For example, if your local property market is witnessing a downtrend, you can lower your initial offer price by three to four percent, to attract more buyers. If the market is booming, you can increase your offer price by 4 to 5 percent. In a balanced market, the offer price should be more or less the same as the offer price for similar properties in your neighborhood.
If you want to sell your Florida home at the most appropriate price, you need to first visit properties that are listed in your locality and note down the amenities and convenience their location offers. In this way, you will get a fair idea as to why some properties are priced higher than others. You can then perform the necessary renovations to your home to attract the right kind of buyers for the property. Selling your property will be much easier thereafter.
http://www.realestateinvestmentarticles.net/Article/home-buying----Determining-Your-Offer-Price-/1942
Compare past property listings:
For determining the most appropriate offer price for your Florida home, you can start by looking at offer prices of other properties in the neighborhood that have been listed over the past six months. You need to select only those properties that are located in the same street or locality. You need to understand that even if there are similar properties in the locality, their market prices often vary depending on their proximity to main streets, freeways and railroads. You need to select only those properties that were more or less built during the same time as your own home.
Adjust the offer price:
In order to make the right offer, you need to compare property listing price offers with the actual sale prices to determine price reductions or increments. This way, you can make similar adjustments to your offer price. If your Florida home has extra amenities or upgrades, you can adjust your offer price accordingly. While studying past property listings, try to ascertain the reasons as to why some properties were sold at higher prices and why some were sold at lower prices. This will help you in making the required changes to your home, necessary for making a high offer price.
Adjust for existing demand-supply situation:
After going through past and present listings and determining an offer price, you need to make adjustments for the current demand-supply scenario existing in the local property market. For example, if your local property market is witnessing a downtrend, you can lower your initial offer price by three to four percent, to attract more buyers. If the market is booming, you can increase your offer price by 4 to 5 percent. In a balanced market, the offer price should be more or less the same as the offer price for similar properties in your neighborhood.
If you want to sell your Florida home at the most appropriate price, you need to first visit properties that are listed in your locality and note down the amenities and convenience their location offers. In this way, you will get a fair idea as to why some properties are priced higher than others. You can then perform the necessary renovations to your home to attract the right kind of buyers for the property. Selling your property will be much easier thereafter.
http://www.realestateinvestmentarticles.net/Article/home-buying----Determining-Your-Offer-Price-/1942
home buying - "70 Ways for Home Buyers to Save Money When Buying a Home: Tip #23"
Tip #23 in our series of 70 ways to save money when buying a house is to buy a home warranty.
Despite the love buyers show for their newfound properties, there could be things beneath the surface not foreseen or witnessed. From a cursory glance, homes may appear spotless with no maintenance required whatsoever, even on resale homes. The word of the seller may cloud enough judgment to avoid covering insurance costs on the home. There have been countless cases where a buyer moved into a home only to find pre-existing wear and tear on the home and leaks a couple of months later. For this reason, a home warranty should be considered.
In essence, a home warranty is a service agreement that protects your home's major operations including its roof, water systems, structure, and appliances. They serve a dual purpose in the real estate game: for sellers to use them as a valuable marketing tool during their selling period and for buyers to rest easy knowing their potential home is secure. These plans can be geared towards any home from the spanking new to the 50 year old duplex. As long as your items are in decent working order and conditions arise after the issuance of the home warranty, you should be covered.
Many buyers make the mistake of interpreting home warranty plans as home insurance policies. They are both totally different things. Home insurance policies are plans providing coverage for burglary, theft, and natural disasters while home warranties cover breakdowns caused by wear and tear in addition to failed circuits, plumbing, or any other home malady. A home warranty is excellent for anyone that wants to gain a higher level of confidence when moving into a resold home. In addition, home warranties are touted by real estate experts as critical to after-sale problem prevention. Although buyers still have the right to file suit on sellers who fail to disclose construction and appliance problems, home warranties can lessen the blow.
Today's home warranty policies usually have a standard 12 month term with the option for more. 6 months or more can be provided in seller coverage as well. In addition, many home warranty companies also offer complimentary inspections to ease the transition into the plan. When it comes to selecting a home warranty, make sure you compare multiple providers. Comparing means finding how which items are included in standard coverage, what items are parts of separate policies, the co-payment, and finding out the reputation/track record of each company. By shopping around, you are virtually ensured that you are getting the best coverage for a fair price.
As buyers, you can have the seller pay for your home warranty along with other concessions. This usually occurs when there has been concessions made by the buyer, such as paying for the house at slightly over market value or surrendering to owner financing. Check to see if you are eligible for a home warranty plan paid for by your seller today for better real estate terms.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-for-Home-Buyers-to-Save-Money-When-Buying-a-Home--Tip--23-/1777
Despite the love buyers show for their newfound properties, there could be things beneath the surface not foreseen or witnessed. From a cursory glance, homes may appear spotless with no maintenance required whatsoever, even on resale homes. The word of the seller may cloud enough judgment to avoid covering insurance costs on the home. There have been countless cases where a buyer moved into a home only to find pre-existing wear and tear on the home and leaks a couple of months later. For this reason, a home warranty should be considered.
In essence, a home warranty is a service agreement that protects your home's major operations including its roof, water systems, structure, and appliances. They serve a dual purpose in the real estate game: for sellers to use them as a valuable marketing tool during their selling period and for buyers to rest easy knowing their potential home is secure. These plans can be geared towards any home from the spanking new to the 50 year old duplex. As long as your items are in decent working order and conditions arise after the issuance of the home warranty, you should be covered.
Many buyers make the mistake of interpreting home warranty plans as home insurance policies. They are both totally different things. Home insurance policies are plans providing coverage for burglary, theft, and natural disasters while home warranties cover breakdowns caused by wear and tear in addition to failed circuits, plumbing, or any other home malady. A home warranty is excellent for anyone that wants to gain a higher level of confidence when moving into a resold home. In addition, home warranties are touted by real estate experts as critical to after-sale problem prevention. Although buyers still have the right to file suit on sellers who fail to disclose construction and appliance problems, home warranties can lessen the blow.
Today's home warranty policies usually have a standard 12 month term with the option for more. 6 months or more can be provided in seller coverage as well. In addition, many home warranty companies also offer complimentary inspections to ease the transition into the plan. When it comes to selecting a home warranty, make sure you compare multiple providers. Comparing means finding how which items are included in standard coverage, what items are parts of separate policies, the co-payment, and finding out the reputation/track record of each company. By shopping around, you are virtually ensured that you are getting the best coverage for a fair price.
As buyers, you can have the seller pay for your home warranty along with other concessions. This usually occurs when there has been concessions made by the buyer, such as paying for the house at slightly over market value or surrendering to owner financing. Check to see if you are eligible for a home warranty plan paid for by your seller today for better real estate terms.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-for-Home-Buyers-to-Save-Money-When-Buying-a-Home--Tip--23-/1777
home buying - "70 Ways for Home Buyers to Save Money When Buying a Home: Tip #22"
Tip #22 in our series of 70 ways to save money when buying a house is to put a deadline on all offers.
We do this to force the seller to make a decision. Once the time limit is up the offer is dead, unless you want to revive it. Put yourself in the seller's shoes. You are selling a $200,000 house that has been on the market for 4 months. You want to move but have to wait until the house sells. You get an offer for $175 but have to make up your mind within 24 hours or the buyers could leave. I don't think I would get much sleep in this situation.
This also protects you from other buyers putting in their own offers. Even if there is another couple interested in the house, the seller cannot be sure that they will make an offer. As the saying goes, a bird in one hand is better than two in the bush.
Buyers are notoriously targeted with an agenda by sellers in multiple areas. The lure of the highest price possible, less lenient financial terms, and a cherry on top is sought out by virtually every seller out there on the market. In order to achieve these incentives, sellers will do everything they can to read the buyer and note any sign of urgency. If they find out a buyer is superbly interested in a home, they will do everything to pamper their own terms. One way for buyers to soften the blow is by placing a time limit of 24 hours on all offers and counteroffers.
Buyers must always be cool when purchasing a home. No sense of urgency should be displayed no matter how much you admire the house. By placing a 24 hour seller response time limit on all offers you make, you are swaying the pendulum. In essence, this works by making an offer to the seller and asking him to accept, decline, or counter that offer within 24 hours.
Although this is an excellent tactic in obtaining the best price, it is always important to maintain a cooperative spirit with the seller. When approaching the seller, don't throw out prices and terms off the bat. Listen to all of the seller's points. Remember, getting the best price is the name of the game, and sellers can show bias and preference for one buyer than the other. Although negotiating real estate can be a daunting experience, it doesn't have to be. Always listen carefully to the arguments of the seller.
Of course, it is also important that the seller listens to you as well. A solid negotiating tactic to drive prices down is to carefully remind them of the negative features their home has. Talk about the market and the features the home is in/carries and leave room in your offer for bargaining. Although the price of the home is the single most important aspect, it is important to come to amicable terms when it comes to closing dates, possession dates, escrow, and other similar issues. Also, be realistic. A seller's market will not allow you to negotiate more effectively than a buyer's market would. Placing a time limit of 24 hours on all offers and counteroffers clearly works better in a buyer's market.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-for-Home-Buyers-to-Save-Money-When-Buying-a-Home--Tip--22-/1765
We do this to force the seller to make a decision. Once the time limit is up the offer is dead, unless you want to revive it. Put yourself in the seller's shoes. You are selling a $200,000 house that has been on the market for 4 months. You want to move but have to wait until the house sells. You get an offer for $175 but have to make up your mind within 24 hours or the buyers could leave. I don't think I would get much sleep in this situation.
This also protects you from other buyers putting in their own offers. Even if there is another couple interested in the house, the seller cannot be sure that they will make an offer. As the saying goes, a bird in one hand is better than two in the bush.
Buyers are notoriously targeted with an agenda by sellers in multiple areas. The lure of the highest price possible, less lenient financial terms, and a cherry on top is sought out by virtually every seller out there on the market. In order to achieve these incentives, sellers will do everything they can to read the buyer and note any sign of urgency. If they find out a buyer is superbly interested in a home, they will do everything to pamper their own terms. One way for buyers to soften the blow is by placing a time limit of 24 hours on all offers and counteroffers.
Buyers must always be cool when purchasing a home. No sense of urgency should be displayed no matter how much you admire the house. By placing a 24 hour seller response time limit on all offers you make, you are swaying the pendulum. In essence, this works by making an offer to the seller and asking him to accept, decline, or counter that offer within 24 hours.
Although this is an excellent tactic in obtaining the best price, it is always important to maintain a cooperative spirit with the seller. When approaching the seller, don't throw out prices and terms off the bat. Listen to all of the seller's points. Remember, getting the best price is the name of the game, and sellers can show bias and preference for one buyer than the other. Although negotiating real estate can be a daunting experience, it doesn't have to be. Always listen carefully to the arguments of the seller.
Of course, it is also important that the seller listens to you as well. A solid negotiating tactic to drive prices down is to carefully remind them of the negative features their home has. Talk about the market and the features the home is in/carries and leave room in your offer for bargaining. Although the price of the home is the single most important aspect, it is important to come to amicable terms when it comes to closing dates, possession dates, escrow, and other similar issues. Also, be realistic. A seller's market will not allow you to negotiate more effectively than a buyer's market would. Placing a time limit of 24 hours on all offers and counteroffers clearly works better in a buyer's market.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-for-Home-Buyers-to-Save-Money-When-Buying-a-Home--Tip--22-/1765
home buying - "Real Estate Hunting 101"
The real estate market today has never been better, but even in a healthy market, with new tools to find and evaluate potentially profitable properties, you can lose a lot of money. Finding a diamond in the rough has been revolutionized by online real estate listings. Photos, prices, and even full 3-D video tours are available but you still have to be careful when selecting an investment property
1. Finding The Property
There are many ways to find investment properties to buy. You can look online, you can get your real estate agent to find properties for you, you can try to find foreclosed properties etc... The important thing to remember is that the property you find must meet certain criteria for it to be a profitable investment
2. Consider The Neighbourhood
When selecting a property, you will want to consider not only the property itself but its neighbours. Be prepared to make more than one visit, in different kinds of weather and at different times of day, if possible. This is where a knowledgeable real estate agent can come in handy who has good insights into the neighbourhood.
3. Check For Leaks
One of the most expensive problems with a home are leaks! If you can try to visit the house when it is raining and always make sure to get an inspector to evaluate the property for possible water damage. Information is power, and if you do find something wrong with the property you can certainly use that as a bargaining chip to lower the price.
4. Strike Your Deal
After you have the inspection completed, if you feel the house is a winner, strike a deal. Find an agent that is experienced and reliable. Even if you have to pay more for their services, the money they can potentially save you by negotiating a price will be worth it.
5. Review The Report Carefully
It's almost impossible to find a house that has everything working 100%. Most minor flaws should be recorded. The most important being leaky plumbing, stained carpets, leaky roofs, damaged walls or floors, or inoperative air conditioning systems. If there are pools of water in the basement or near foundations that can substantially lower the price.
6. Everything Is Negotiable
There's no point in offering the asking price because the asking price is always just that - the price that the sellers would like to get. It is likely higher than the actual value of the home. Very few properties, even newly constructed ones, are perfect.
http://www.realestateinvestmentarticles.net/Article/home-buying----Real-Estate-Hunting-101-/1652
1. Finding The Property
There are many ways to find investment properties to buy. You can look online, you can get your real estate agent to find properties for you, you can try to find foreclosed properties etc... The important thing to remember is that the property you find must meet certain criteria for it to be a profitable investment
2. Consider The Neighbourhood
When selecting a property, you will want to consider not only the property itself but its neighbours. Be prepared to make more than one visit, in different kinds of weather and at different times of day, if possible. This is where a knowledgeable real estate agent can come in handy who has good insights into the neighbourhood.
3. Check For Leaks
One of the most expensive problems with a home are leaks! If you can try to visit the house when it is raining and always make sure to get an inspector to evaluate the property for possible water damage. Information is power, and if you do find something wrong with the property you can certainly use that as a bargaining chip to lower the price.
4. Strike Your Deal
After you have the inspection completed, if you feel the house is a winner, strike a deal. Find an agent that is experienced and reliable. Even if you have to pay more for their services, the money they can potentially save you by negotiating a price will be worth it.
5. Review The Report Carefully
It's almost impossible to find a house that has everything working 100%. Most minor flaws should be recorded. The most important being leaky plumbing, stained carpets, leaky roofs, damaged walls or floors, or inoperative air conditioning systems. If there are pools of water in the basement or near foundations that can substantially lower the price.
6. Everything Is Negotiable
There's no point in offering the asking price because the asking price is always just that - the price that the sellers would like to get. It is likely higher than the actual value of the home. Very few properties, even newly constructed ones, are perfect.
http://www.realestateinvestmentarticles.net/Article/home-buying----Real-Estate-Hunting-101-/1652
home buying - "How To Make The Home Buying Decision Easier"
Purchasing a home can be a very big decision. There are many things that you need to consider when purchasing a home. Nothing about this process is easy. First you have to decide where you want to be located, and what you want your house to have. A few questions you need to think about are: do we want a garage, how many bedrooms and bathrooms do you want, do you want a basement, and how big of a yard do we want? You will also need to decide which of these items you are willing to compromise on.
If you are serious about purchasing a new house you may also want to start shopping around for a bank where you can get a mortgage that you like. Once you find your house you want to purchase you will not want to waste any time getting moved in.
Many banks offer you the option of pre qualification. With this you will know how much you can spend on a house based on how much your loan can be. Banks take into consideration your income and your debt to determine how much they think you can afford for a house payment. This may be something you want to know before you start getting too excited about a house. You may have a limit to how much you can spend, and this could save you time when looking at houses.
The bank will also run a credit check to see how your credit is. Your credit score is based on how good you are at paying your bills on time. It also allows the bank to see who else you are in debt to and how much you are in debt. This may also affect your loan amount. If you have good credit the bank may be more willing to work with you on a loan amount.
You will also want to check around to see which bank can get you a better interest rate. Some banks can offer better interest rates than others. Your interest rate may also depend on your credit score. You want to find the bank that will give you the lowest interest rate, as this will also affect your payment. Your interest affects how much you actually end up paying for your house by the time it is paid off. You will also need to decide if you want a fixed interest rate or not. Some banks offer you a lower interest rate to begin with, and then increase the rate later on. You will want to check if this type of interest rate has a limit to how high it can go.
Not all banks can offer you the same types of loans. If you would like a first time homebuyer's loan you will need to talk to the banks that offer this type of loan. They are loans that are backed by government. Loans that are not backed are called conventional loans.
You can also get loans that require no or low down payments. Closing costs are another expense you need to consider. Some banks charge more than others and some offer no closing costs.
You have many things to consider when choosing a bank for your loan. Make sure you do not limit yourself, shop around before you make your decision. Find a bank that is willing to work with you. You need to keep in mind what kind of loan you want, what kind of interest rate and payment works for you, and how much you have for down payment and closing costs.
http://www.realestateinvestmentarticles.net/Article/home-buying----How-To-Make-The-Home-Buying-Decision-Easier-/1643
If you are serious about purchasing a new house you may also want to start shopping around for a bank where you can get a mortgage that you like. Once you find your house you want to purchase you will not want to waste any time getting moved in.
Many banks offer you the option of pre qualification. With this you will know how much you can spend on a house based on how much your loan can be. Banks take into consideration your income and your debt to determine how much they think you can afford for a house payment. This may be something you want to know before you start getting too excited about a house. You may have a limit to how much you can spend, and this could save you time when looking at houses.
The bank will also run a credit check to see how your credit is. Your credit score is based on how good you are at paying your bills on time. It also allows the bank to see who else you are in debt to and how much you are in debt. This may also affect your loan amount. If you have good credit the bank may be more willing to work with you on a loan amount.
You will also want to check around to see which bank can get you a better interest rate. Some banks can offer better interest rates than others. Your interest rate may also depend on your credit score. You want to find the bank that will give you the lowest interest rate, as this will also affect your payment. Your interest affects how much you actually end up paying for your house by the time it is paid off. You will also need to decide if you want a fixed interest rate or not. Some banks offer you a lower interest rate to begin with, and then increase the rate later on. You will want to check if this type of interest rate has a limit to how high it can go.
Not all banks can offer you the same types of loans. If you would like a first time homebuyer's loan you will need to talk to the banks that offer this type of loan. They are loans that are backed by government. Loans that are not backed are called conventional loans.
You can also get loans that require no or low down payments. Closing costs are another expense you need to consider. Some banks charge more than others and some offer no closing costs.
You have many things to consider when choosing a bank for your loan. Make sure you do not limit yourself, shop around before you make your decision. Find a bank that is willing to work with you. You need to keep in mind what kind of loan you want, what kind of interest rate and payment works for you, and how much you have for down payment and closing costs.
http://www.realestateinvestmentarticles.net/Article/home-buying----How-To-Make-The-Home-Buying-Decision-Easier-/1643
home buying - "70 Ways for Home Buyers to Save Money When Buying a Home: Tip #18"
Tip #17 in our series of 70 ways to save money when buying a house is to buy the worst house in a good neighborhood rather than the best house in a so-so neighborhood.
The reason why you should do this is simple. The worst house will appreciate (go up) in value much faster than the best house because of the neighborhood. It will also be easier to sell when you need to move, and it will sell faster.
The value of the house in the so-so neighborhood will be kept down by the other houses in the neighborhood. The schools might not be as good either because of lower property taxes due to lower house values.
You might paying the same price for a smaller house that needs more work, but if it is in a good neighborhood, than the value of the house will appreciate. The better neighborhood is more desirable. The more people want to live there, they more they will be willing to pay.
On the other hand, a so-so neighborhood can be cheap to but into. Your house might be the best around, but if the house next door is much cheaper, than someone could move in who does not take care of the house as much. That will lower your homes value as well.
Better neighborhoods also have stricter zoning rules and a homeowners association.
A home is a so-so neighborhood has a good chance of going down in value. At the very least it will not appreciate until all the homes in the neighborhood start to appreciate, and that could take a long time.
Research studies have shown that neighborhoods will good schools appreciate the fastest.
While you might get a larger home for the same price in a so-so neighborhood, if you think about the future, your best bet is to get the home in the better neighborhood. Even if it needs more work. Any work you do to improve it will quickly increase the value.
This tip is not exactly a way to save money when buying a house. But it is a top to help you make more money by buying a house. Buy the wrong house and your hopes of a higher home value might not materialize.
Take for example the neighborhood of The Woodlands, north of Houston. There are thousands of homes in this area and many smaller neighborhoods. My son owned a rental property in one area where the prices did not appreciate for the four years he owned the house. If he had bought a rental just a few streets away he would have gotten at least 5% appreciation a year. The neighborhood cost him about $20,000.
Make sure you do your research and buy in a good neighborhood.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-for-Home-Buyers-to-Save-Money-When-Buying-a-Home--Tip--18-/1619
The reason why you should do this is simple. The worst house will appreciate (go up) in value much faster than the best house because of the neighborhood. It will also be easier to sell when you need to move, and it will sell faster.
The value of the house in the so-so neighborhood will be kept down by the other houses in the neighborhood. The schools might not be as good either because of lower property taxes due to lower house values.
You might paying the same price for a smaller house that needs more work, but if it is in a good neighborhood, than the value of the house will appreciate. The better neighborhood is more desirable. The more people want to live there, they more they will be willing to pay.
On the other hand, a so-so neighborhood can be cheap to but into. Your house might be the best around, but if the house next door is much cheaper, than someone could move in who does not take care of the house as much. That will lower your homes value as well.
Better neighborhoods also have stricter zoning rules and a homeowners association.
A home is a so-so neighborhood has a good chance of going down in value. At the very least it will not appreciate until all the homes in the neighborhood start to appreciate, and that could take a long time.
Research studies have shown that neighborhoods will good schools appreciate the fastest.
While you might get a larger home for the same price in a so-so neighborhood, if you think about the future, your best bet is to get the home in the better neighborhood. Even if it needs more work. Any work you do to improve it will quickly increase the value.
This tip is not exactly a way to save money when buying a house. But it is a top to help you make more money by buying a house. Buy the wrong house and your hopes of a higher home value might not materialize.
Take for example the neighborhood of The Woodlands, north of Houston. There are thousands of homes in this area and many smaller neighborhoods. My son owned a rental property in one area where the prices did not appreciate for the four years he owned the house. If he had bought a rental just a few streets away he would have gotten at least 5% appreciation a year. The neighborhood cost him about $20,000.
Make sure you do your research and buy in a good neighborhood.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-for-Home-Buyers-to-Save-Money-When-Buying-a-Home--Tip--18-/1619
home buying - "70 Ways for Home Buyers to Save Money When Buying a Home: Tip #12"
Buying a house as-is means the seller will not fix anything. Most of the time, homes sold as-is have many things wrong with them. And because of that fact, they are cheaper than similar homes than do not need any work.
This might mean something as small as a wall needs to be rebuilt, or the house might need a new roof. But it could also mean that they house has a cracked foundation or is infested with mold.
Buying a house as-is is a great way to get a house at much lower then retail price. But make sure that you are capable of making the repairs.
You can use this idea in any house you want to buy. By finding things in the house that need to be fixed, you can offer to fix them yourself if the seller reduces the price of the house enough for you to get the items done.
Sellers usually will agree to avoid the hassle of hiring people to fix things, and to get the house sold quickly.
Sweat equity is the term referred to the amount the house goes up in value because you fixed it up yourself. Several handy man specials are available in every neighborhood, that anyone willing to, could buy cheap, fix up and raise the value of the property by thousands.
This is the way several contractors buy their own houses. Or even if you are handy with your hands. Find a house that needs repairs but is still livable. But it cheaper then normal, and move it. While you live there, you can start improving it. You save on the labor and on the price of the house.
When you are done, the house should have appreciated in value and you can sell for a very nice profit and do the whole thing over again.
Or if you want to stay in the house, you get the satisfaction of having the house fixed the way you want it. It does not make sense to pay full price for a house, and then knock out a wall to make a room bigger. With an as-is house, you can make whatever changes you want and know that you did not have to pay for them.
Even if the house is not a total mess, all houses have some items that are broken. Make sure to point out each and every item to the seller and ask him to either fix it or lower the price enough so you can fix it. This tactic alone will save you several hundred dollars.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-for-Home-Buyers-to-Save-Money-When-Buying-a-Home--Tip--12-/1605
This might mean something as small as a wall needs to be rebuilt, or the house might need a new roof. But it could also mean that they house has a cracked foundation or is infested with mold.
Buying a house as-is is a great way to get a house at much lower then retail price. But make sure that you are capable of making the repairs.
You can use this idea in any house you want to buy. By finding things in the house that need to be fixed, you can offer to fix them yourself if the seller reduces the price of the house enough for you to get the items done.
Sellers usually will agree to avoid the hassle of hiring people to fix things, and to get the house sold quickly.
Sweat equity is the term referred to the amount the house goes up in value because you fixed it up yourself. Several handy man specials are available in every neighborhood, that anyone willing to, could buy cheap, fix up and raise the value of the property by thousands.
This is the way several contractors buy their own houses. Or even if you are handy with your hands. Find a house that needs repairs but is still livable. But it cheaper then normal, and move it. While you live there, you can start improving it. You save on the labor and on the price of the house.
When you are done, the house should have appreciated in value and you can sell for a very nice profit and do the whole thing over again.
Or if you want to stay in the house, you get the satisfaction of having the house fixed the way you want it. It does not make sense to pay full price for a house, and then knock out a wall to make a room bigger. With an as-is house, you can make whatever changes you want and know that you did not have to pay for them.
Even if the house is not a total mess, all houses have some items that are broken. Make sure to point out each and every item to the seller and ask him to either fix it or lower the price enough so you can fix it. This tactic alone will save you several hundred dollars.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-for-Home-Buyers-to-Save-Money-When-Buying-a-Home--Tip--12-/1605
home buying - "70 Ways for Home Buyers to Save Money When Buying a Home: Tip #11"
A mortgage pre-approval letter is given to you after you are approved for a loan. And you can be approved before you even find a home. In fact, the letter can be a useful negotiating tool. This tip will show you how to use this tool to negotiate a cheaper price on your next house.
The reason to get a pre-approval letter is to show to the seller, that you are able to close. A pre-approval is much different from a pre-qualification. Any loan officer can qualify you in 10 minutes. But that only means that you might qualify for a loan. A pre-approval means that you are ALREADY qualified. So when you submit your offer to the seller, the seller does not have to worry about taking the home off the market while you run around trying to get a mortgage.
This works in your favor when the seller receives two offers at the same time. Even if your offer is lower, the seller might go with you instead of having the uncertainty that the other party might not get the loan.
Now here is an advanced tip:
Once you get pre-approved, get two letters from your mortgage company. One stating the highest amount of loan they will give you, and one for a lower amount.
When you find a house to make an offer on: add the pre-approval letter with the offer to buy the house (the one with the lower amount).
If you offer the seller less than what he is asking, and give him the letter (with the lower amount) he will think that is the highest the bank with lend you and that is the highest amount you can pay.
If he thinks you cannot pay any more, even if you wanted to, chances are good that he will agree to your price if he can.
If the seller still does not agree, you can say that you will try to get your lender to approve you for more so that you can keep the negotiations going.
Do you realize what happened here? We are trying to trick the seller to think that the low price you offered is the best you can do. And you are giving him proof. Except that you are not lying. You never say that this is the best you can do. Let him make his own conclusion from the pre-approval letter. If the house has been on the market for any length of time or the seller has already moved out, or needs to move quickly he will probably take your offer. He will assume that since this is the highest amount you can get a loan for, and if he rejects your offer, he loses the sale. It is very hard for a seller to say no to someone who comes pre-approved.
We have used this technique to help clients save thousands by paying much less for their homes than they expected.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-for-Home-Buyers-to-Save-Money-When-Buying-a-Home--Tip--11-/1585
The reason to get a pre-approval letter is to show to the seller, that you are able to close. A pre-approval is much different from a pre-qualification. Any loan officer can qualify you in 10 minutes. But that only means that you might qualify for a loan. A pre-approval means that you are ALREADY qualified. So when you submit your offer to the seller, the seller does not have to worry about taking the home off the market while you run around trying to get a mortgage.
This works in your favor when the seller receives two offers at the same time. Even if your offer is lower, the seller might go with you instead of having the uncertainty that the other party might not get the loan.
Now here is an advanced tip:
Once you get pre-approved, get two letters from your mortgage company. One stating the highest amount of loan they will give you, and one for a lower amount.
When you find a house to make an offer on: add the pre-approval letter with the offer to buy the house (the one with the lower amount).
If you offer the seller less than what he is asking, and give him the letter (with the lower amount) he will think that is the highest the bank with lend you and that is the highest amount you can pay.
If he thinks you cannot pay any more, even if you wanted to, chances are good that he will agree to your price if he can.
If the seller still does not agree, you can say that you will try to get your lender to approve you for more so that you can keep the negotiations going.
Do you realize what happened here? We are trying to trick the seller to think that the low price you offered is the best you can do. And you are giving him proof. Except that you are not lying. You never say that this is the best you can do. Let him make his own conclusion from the pre-approval letter. If the house has been on the market for any length of time or the seller has already moved out, or needs to move quickly he will probably take your offer. He will assume that since this is the highest amount you can get a loan for, and if he rejects your offer, he loses the sale. It is very hard for a seller to say no to someone who comes pre-approved.
We have used this technique to help clients save thousands by paying much less for their homes than they expected.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-for-Home-Buyers-to-Save-Money-When-Buying-a-Home--Tip--11-/1585
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