Here is your chance to learn from other home buyers’ mistakes! We’ve listed the five most common mistakes that a home buyer can make:
1) Failing to plan for the future – Even if you think you will live in your new house for the rest of your life, you should still plan your exit strategy. If, for some reason, you needed to sell your home, would you be able to? And, if you could sell the home, would you make any profit from it? Be sure to talk with your real estate agent about buying a home with resale value so that you can plan for any problems that may come up in the future. He or she should be able to tell you what to look for.
2) Not checking the Covenants and Restrictions – Some neighborhood Homeowners Associations are stricter than others. An active HOA can be good (it can keep your neighbor from painting his house Pepto-Bismol Pink). But, if you want to store your boat at your house, add on a garage, or install a privacy fence, be sure to check with the HOA in the neighborhood before you buy. If one of the neighborhoods you’re interested in doesn’t allow your boat, for example, you can either price boat storage elsewhere or look in another neighborhood.
3) Not getting all agreements in writing – So that all parties will do what they say they are going to do, it is important to get these claims in writing. Your real estate agent may get the builder or the seller to sign written addendums in order to protect your best interests during the home buying process.
4) Neglecting to perform home inspections – When your real estate agent writes your contract to buy a home, he or she can include an inspection contingency. This contingency gives you a way out of the contract if the home inspection reports more repairs than you want to make. A termite inspection is usually required by your mortgage company, but a regular home inspection is usually not required. We recommend getting this standard home inspection so that you know the condition of the home before you buy it. So, if there are serious foundation problems that you did not notice earlier, your inspection contingency can get you out of the contract (and usually without any penalties).
5) Forgetting to do a final walk-through – You have an opportunity to walk through your new home right before you officially buy it. Usually the final walk-through takes place the day of or the day before your closing. Chances are that when you first looked at the home, the seller was still living there. So, during the walk-through you can see the home completely vacant and ready for you to move in. You can see for yourself that there are no problems with the house before you close on it. Also, if you know that you will not be able to go to your final walk-through because of a flight schedule, etc., you can ask your real estate agent to go instead.
Now that you’ve read five mistakes made by other home buyers, you shouldn’t make them yourself! Learn from other people’s mistakes so that you can have a good home buying experience!
Lee Keadle is a full-time real estate agent in Charleston, SC. He works with a team of three agents to give buyers and sellers the best services possible. You can search for homes and vacant land on our website at http://www.SearchForCharlestonRealEstate.com
Article Source: http://EzineArticles.com/?expert=Lee_Keadle
Saturday, November 3, 2007
Buying Your First Home? What A Mortgage Broker Wants You To Know
So you think that you're ready to buy your own home? Hopefully you've done a little research online to make your first home buying experience a good one. First of all you should contact a mortgage broker that will preapprove you for your new mortgage. This is now more important than ever. It's also important that once you receive a preapproval you get busy right away looking for your new home. The reasoning for this is that with the mortgage meltdown lenders are changing their lending programs as quickly as Paris Hilton changes her boyfriends. Scary, huh?
At this point you will let the mortgage broker now how much you would like to get preapproved for. The broker will then take a full mortgage loan application. The mortgage broker will also run your credit. With all this information in hand the mortgage broker will see if you have enough income for the price of the home that you would like to purchase. If you can't get approved for the full amount that you wanted the mortgage broker will let you know how much you are approved for on your new home. You will have to chose the term of mortgage that you want such as 30 or 15 yr. Most borrowers these days are staying away from adjustable rate mortgages like the plague. The interest rates on the adjustable rate mortgages are not much lower than fixed rates so these days chose a fixed rate and be done with it. At this point the mortgage broker will also make sure that you have enough funds to close on the loan.
You will not be able to lock in your interest rate until you have found your new property and obtained a signed sales contract.
Once you have found your new home you will fax the signed sales contract to your broker who will submit your loan application to the lender. At this time you will also need to provide 1 months worth of paystubs, last years W-2, bank statements showing funds to close plus at least 2 months of reserves, a copy of your drivers license. Then the package is off to the lender. The lender will approve the loan within 2-3 days depending upon how busy they are. At that time there are usually an item or two more that you may have to provide. These can include an insurance binder for homeowners insurance, flood insurance or anything else that the bank may have a question on.
You should have final approval and a clear to close within 1-2 weeks after submitting your loan to the lender. If it is taking longer than that you may want to check with your broker to see if there are any concerns or issues that you should know about. You really want to be proactive on the purchase of your new home. You don't want to get to the day of closing and have your purchase cancelled.
Follow these tips and you should close your loan and enjoy your beautiful new home.
Sandra Sheely is President of First Financial Mortgage, Inc. in Sunrise, FL. She has been in the Real Estate Industry for 12 years with experience in the mortgage industry and title industry. She has a couple of Mortgage websites. http://www.ffinancialmortgage.com and http://www.lowestraterefi.com
She writes a mortgage blog her mortgage websites. She has a credit repair website at http://firstfinancial.fixcreditbiz.com/
Article Source: http://EzineArticles.com/?expert=Sandra_Sheely
At this point you will let the mortgage broker now how much you would like to get preapproved for. The broker will then take a full mortgage loan application. The mortgage broker will also run your credit. With all this information in hand the mortgage broker will see if you have enough income for the price of the home that you would like to purchase. If you can't get approved for the full amount that you wanted the mortgage broker will let you know how much you are approved for on your new home. You will have to chose the term of mortgage that you want such as 30 or 15 yr. Most borrowers these days are staying away from adjustable rate mortgages like the plague. The interest rates on the adjustable rate mortgages are not much lower than fixed rates so these days chose a fixed rate and be done with it. At this point the mortgage broker will also make sure that you have enough funds to close on the loan.
You will not be able to lock in your interest rate until you have found your new property and obtained a signed sales contract.
Once you have found your new home you will fax the signed sales contract to your broker who will submit your loan application to the lender. At this time you will also need to provide 1 months worth of paystubs, last years W-2, bank statements showing funds to close plus at least 2 months of reserves, a copy of your drivers license. Then the package is off to the lender. The lender will approve the loan within 2-3 days depending upon how busy they are. At that time there are usually an item or two more that you may have to provide. These can include an insurance binder for homeowners insurance, flood insurance or anything else that the bank may have a question on.
You should have final approval and a clear to close within 1-2 weeks after submitting your loan to the lender. If it is taking longer than that you may want to check with your broker to see if there are any concerns or issues that you should know about. You really want to be proactive on the purchase of your new home. You don't want to get to the day of closing and have your purchase cancelled.
Follow these tips and you should close your loan and enjoy your beautiful new home.
Sandra Sheely is President of First Financial Mortgage, Inc. in Sunrise, FL. She has been in the Real Estate Industry for 12 years with experience in the mortgage industry and title industry. She has a couple of Mortgage websites. http://www.ffinancialmortgage.com and http://www.lowestraterefi.com
She writes a mortgage blog her mortgage websites. She has a credit repair website at http://firstfinancial.fixcreditbiz.com/
Article Source: http://EzineArticles.com/?expert=Sandra_Sheely
Buying Into That Great Australian Dream - Hot Tips For Home Buyers
From Darwin to Dubbo, Brisbane to Broome, Australia has one of the highest levels of home ownership in the world. In spite of the recent surge in prices in every capital city, that great Aussie dream of owning your own patch of paradise is still what most of us aspire to. But if you’re smart and do some planning, there are clever ways to make buying your own home a little easier to do. Here are seven good tips to help you get the front door key faster.
1. Don’t be swayed by fabulous furniture and fresh flowers.
Many home sellers now use professional stylists to ensure their property looks the best at open for inspections. But look beyond the designer cushions and fresh flowers. Be practical. Do a pest and building inspection and check for major structural damage or signs of rot. And, don’t forget to ask yourself all those mundane questions – such as is there enough cupboard space in the kitchen or will your sofa fit through the front door?
2. Location first, property second.
Your first property may not be your dream home, but it can be a vital springboard towards that long term goal. The trick is to buy in a location where property values are growing at the same rate as the location you ultimately want to live in. This means compromising on the size or style of property. Buying a town house or a unit instead of a house, or a one bedroom instead of a two bedroom place.The important thing is that you'll have a foothold in your dream location. When you've accumulated more equity through capital growth, you'll be able to trade up to your dream home, too.
3. Small apartment blocks versus large.
The glamour of a big modern apartment block with outdoor pool, gym and on-site caretaker can certainly win over buyers. But here comes the crunch. You pay expensive body corporate fees every quarter and ongoing maintenance charges. Smaller blocks are usually older with fewer (if any) facilities, cost less to run and are often better maintained because of a higher level of owners versus renters. If you’re in the market for an apartment and see several places for the sale in the same block, chances are the fees are the reason why. Beware.
4. Save valuable time. Search online for the best loan
When it comes to finding a loan, it pays to do your homework. There’s a minefield of possibilities, offers, types of loans, variable and fixed rates. Compare what’s on offer with different banks (not just the big 4), mortgage brokers and boutique lenders. Some places may offer only one or two loan types, but lenders such as HSBC Australia have no less than 9 different loans to suit everyone’s lifestyle. Well worth checking out.
5. Don’t forget about fees – keep funds aside
Okay. You’ve been saving hard for a deposit and your loan has been approved. When you take the plunge a sign a contract of sale, there are all sorts of little (and not-so-little extras) added on. These include stamp duty, legal costs, disbursements, mortgage insurance, pest inspection report, survey report, builder's report, loan application fee, valuation fee, registration fee and so on.
6. Another secret. Ask about “professional package” discounts
Banks are a lot more competitive nowadays and actively reward customer loyalty. If you're earning a reasonably good salary, say more than $50,000 a year, or $80,000 or more with a partner, ask about the "professional packages". The home loan interest rate you are offered is usually discounted by 0.5 per cent, which can really help. If you have a strong relationship with one lender and consolidate all your business with them, you can qualify for more discounts, savings account fee waivers and credit card annual fee waivers.
7. Forget that daily latte. Extra payments can reduce your interest faster
If you gave up buying your morning latte on the way to work, you can save over $700 a year! Put it towards your loan. Making extra repayments is one of the best ways to reduce the total interest paid and term of your loan. Some people even try making payments every fortnight – great if it works for you and your budget.
As a rule of thumb, every $1 in extra repayments you make early in the life of your loan saves around $2 in interest over the term of the loan, depending on the level of interest rates.
If you have spare cash from selling your car or a garage sale, think about making a one-off lump sum payment. Check first that your loan allows you to make additional repayments without a penalty.
Happy house hunting!
Cathy Howley is Creative Manager and Copywriter at Options Strategy, Melbourne. The digital agency with the strategy edge. If you're in the market for a home loan in Australia, make sure you visit HSBC Australia
Article Source: http://EzineArticles.com/?expert=Cathy_Howley
1. Don’t be swayed by fabulous furniture and fresh flowers.
Many home sellers now use professional stylists to ensure their property looks the best at open for inspections. But look beyond the designer cushions and fresh flowers. Be practical. Do a pest and building inspection and check for major structural damage or signs of rot. And, don’t forget to ask yourself all those mundane questions – such as is there enough cupboard space in the kitchen or will your sofa fit through the front door?
2. Location first, property second.
Your first property may not be your dream home, but it can be a vital springboard towards that long term goal. The trick is to buy in a location where property values are growing at the same rate as the location you ultimately want to live in. This means compromising on the size or style of property. Buying a town house or a unit instead of a house, or a one bedroom instead of a two bedroom place.The important thing is that you'll have a foothold in your dream location. When you've accumulated more equity through capital growth, you'll be able to trade up to your dream home, too.
3. Small apartment blocks versus large.
The glamour of a big modern apartment block with outdoor pool, gym and on-site caretaker can certainly win over buyers. But here comes the crunch. You pay expensive body corporate fees every quarter and ongoing maintenance charges. Smaller blocks are usually older with fewer (if any) facilities, cost less to run and are often better maintained because of a higher level of owners versus renters. If you’re in the market for an apartment and see several places for the sale in the same block, chances are the fees are the reason why. Beware.
4. Save valuable time. Search online for the best loan
When it comes to finding a loan, it pays to do your homework. There’s a minefield of possibilities, offers, types of loans, variable and fixed rates. Compare what’s on offer with different banks (not just the big 4), mortgage brokers and boutique lenders. Some places may offer only one or two loan types, but lenders such as HSBC Australia have no less than 9 different loans to suit everyone’s lifestyle. Well worth checking out.
5. Don’t forget about fees – keep funds aside
Okay. You’ve been saving hard for a deposit and your loan has been approved. When you take the plunge a sign a contract of sale, there are all sorts of little (and not-so-little extras) added on. These include stamp duty, legal costs, disbursements, mortgage insurance, pest inspection report, survey report, builder's report, loan application fee, valuation fee, registration fee and so on.
6. Another secret. Ask about “professional package” discounts
Banks are a lot more competitive nowadays and actively reward customer loyalty. If you're earning a reasonably good salary, say more than $50,000 a year, or $80,000 or more with a partner, ask about the "professional packages". The home loan interest rate you are offered is usually discounted by 0.5 per cent, which can really help. If you have a strong relationship with one lender and consolidate all your business with them, you can qualify for more discounts, savings account fee waivers and credit card annual fee waivers.
7. Forget that daily latte. Extra payments can reduce your interest faster
If you gave up buying your morning latte on the way to work, you can save over $700 a year! Put it towards your loan. Making extra repayments is one of the best ways to reduce the total interest paid and term of your loan. Some people even try making payments every fortnight – great if it works for you and your budget.
As a rule of thumb, every $1 in extra repayments you make early in the life of your loan saves around $2 in interest over the term of the loan, depending on the level of interest rates.
If you have spare cash from selling your car or a garage sale, think about making a one-off lump sum payment. Check first that your loan allows you to make additional repayments without a penalty.
Happy house hunting!
Cathy Howley is Creative Manager and Copywriter at Options Strategy, Melbourne. The digital agency with the strategy edge. If you're in the market for a home loan in Australia, make sure you visit HSBC Australia
Article Source: http://EzineArticles.com/?expert=Cathy_Howley
How To Find A Good Realtor To Help You Through the Home Buying Process
This will be one of the most important decisions you make in the house buying process. It’s almost as important as selecting the right house. The right realtor can make buying a house seem simple. The wrong realtor...well, take my word, and find the right realtor.
You’ll be making LOTS of contacts and spending lots of time with your realtors, so find someone who is right for you.
What makes a “good” realtor?
* Knowledgeable...about real estate, about the area you want to look in, and about your specific needs.
* Accessible...responds to your phone calls or emails, is willing to work around your schedule.
* Ready to help YOU first, make the sale second...sure, realtors make their living on commissions from the sale of houses, but if they help you get what YOU want, they will then get what THEY want.
On the other hand, a poor realtor will bring you to houses that DON’T fit the criteria on your list. WON’T work around your schedule. WON’T return your phone calls promptly. And WON’T put your best interests at the very top of the list!
So don’t think that ALL realtors are alike. Unfortunately, we learned the hard way.
If it takes awhile to find your perfect house, you’ll spend a lot of time with your realtor, and you want someone who is willing to work with you until you are comfortably moved in to your new house!
Where can you find a good realtor?
The first step is to ask people you know who have bought or sold a house recently about the realtors they used. You can also look in your local newspaper, phonebook, or on the Internet.
Make sure to ask lots of questions before hiring any realtor to represent you. There are a lot of details that go into buying a house. Once you get started, remembering all of those details will get harder and harder. A good realtor will be organized, and help you remember what you can’t remember when the house buying process gets complicated.
Then, ask for references of former customers – if you have the time, contact a few of them to find out first-hand about the realtors you are considering before you enter into an agreement.
There is no “exact science” to hiring a good realtor. But it’s not a decision to take lightly.
And, if you end up making the wrong choice, feel free to walk away and find another realtor – its your choice!
Kris Bickell is the owner of HouseBuying-Tips.com, a site that helps first time home buyers avoid the costly mistakes that many new homebuyers make. For tips on buying a house, getting a mortgage, finding a realtor, and getting out of debt, visit: http://www.HouseBuying-Tips.com, or sign up for the free “How To Avoid These 10 Costly Mistakes When Buying Your First Home” email course at: http://www.HouseBuying-Tips.com/course.html © 2005 HouseBuying-Tips.com
Article Source: http://EzineArticles.com/?expert=Kris_Bickell
You’ll be making LOTS of contacts and spending lots of time with your realtors, so find someone who is right for you.
What makes a “good” realtor?
* Knowledgeable...about real estate, about the area you want to look in, and about your specific needs.
* Accessible...responds to your phone calls or emails, is willing to work around your schedule.
* Ready to help YOU first, make the sale second...sure, realtors make their living on commissions from the sale of houses, but if they help you get what YOU want, they will then get what THEY want.
On the other hand, a poor realtor will bring you to houses that DON’T fit the criteria on your list. WON’T work around your schedule. WON’T return your phone calls promptly. And WON’T put your best interests at the very top of the list!
So don’t think that ALL realtors are alike. Unfortunately, we learned the hard way.
If it takes awhile to find your perfect house, you’ll spend a lot of time with your realtor, and you want someone who is willing to work with you until you are comfortably moved in to your new house!
Where can you find a good realtor?
The first step is to ask people you know who have bought or sold a house recently about the realtors they used. You can also look in your local newspaper, phonebook, or on the Internet.
Make sure to ask lots of questions before hiring any realtor to represent you. There are a lot of details that go into buying a house. Once you get started, remembering all of those details will get harder and harder. A good realtor will be organized, and help you remember what you can’t remember when the house buying process gets complicated.
Then, ask for references of former customers – if you have the time, contact a few of them to find out first-hand about the realtors you are considering before you enter into an agreement.
There is no “exact science” to hiring a good realtor. But it’s not a decision to take lightly.
And, if you end up making the wrong choice, feel free to walk away and find another realtor – its your choice!
Kris Bickell is the owner of HouseBuying-Tips.com, a site that helps first time home buyers avoid the costly mistakes that many new homebuyers make. For tips on buying a house, getting a mortgage, finding a realtor, and getting out of debt, visit: http://www.HouseBuying-Tips.com, or sign up for the free “How To Avoid These 10 Costly Mistakes When Buying Your First Home” email course at: http://www.HouseBuying-Tips.com/course.html © 2005 HouseBuying-Tips.com
Article Source: http://EzineArticles.com/?expert=Kris_Bickell
Home Buying for Seniors: A 4-Step Checklist to Downsizing
Have you decided to replace your family home with a smaller residence? Having trouble deciding whether to stay or go? Don’t let the downsizing process and physical move overwhelm you or prevent you from making the move. One of the first things you need to do is prepare yourself mentally for the move. Then, you should be actively involved in the process, keep an open mind and focus on the reason why you are moving. Once that is accomplished, next consider these key steps in making your move:
Determine your location, housing options & features.
Meet with your financial planner to review your financial plans and discuss what you can do to reduce your tax burden.
Get your family involved to support you and help you make decisions for your next move.
Prepare to move by planning on what stays & what goes and how much space you need.
Now that you’ve decided what you want to do, where you want to go, and cleared out your personal belongings, you can create your new lifestyle. A great resource to help guide you through the downsizing process is to use the experience and knowledge of a Seniors Real Estate Specialist (SRES). Realtors with this designation have demonstrated the knowledge and expertise to counsel senior clients through the major financial and lifestyle transitions involved in relocating, refinancing, or selling a family home. They can also refer you to their team of professionals, such as a C.P.A., estate planner, or attorney to assist you with all your needs. To find a SRES near you, visit www.seniorsrealestate.com.
If you plan your move well, you should be comfortable about your decision. Then, after you buy your new home………congratulate yourself. You have successfully downsized your life to allow the time, freedom and flexibility for new pursuits!
JoJo Harmon is a realtor with Prudential California Realty in Orange County California and has earned the Seniors Real Estate Specialist designation (SRES). Realtors with the SRES designation have demonstrated the knowledge and expertise to counsel senior clients through lifestyle transitions. She specialized in residential homes, relocations, investment properties, senior 55+ housing and fine homes and estates from Newport Beach to San Clemente.
Article Source: http://EzineArticles.com/?expert=JoJo_Harmon
Determine your location, housing options & features.
Meet with your financial planner to review your financial plans and discuss what you can do to reduce your tax burden.
Get your family involved to support you and help you make decisions for your next move.
Prepare to move by planning on what stays & what goes and how much space you need.
Now that you’ve decided what you want to do, where you want to go, and cleared out your personal belongings, you can create your new lifestyle. A great resource to help guide you through the downsizing process is to use the experience and knowledge of a Seniors Real Estate Specialist (SRES). Realtors with this designation have demonstrated the knowledge and expertise to counsel senior clients through the major financial and lifestyle transitions involved in relocating, refinancing, or selling a family home. They can also refer you to their team of professionals, such as a C.P.A., estate planner, or attorney to assist you with all your needs. To find a SRES near you, visit www.seniorsrealestate.com.
If you plan your move well, you should be comfortable about your decision. Then, after you buy your new home………congratulate yourself. You have successfully downsized your life to allow the time, freedom and flexibility for new pursuits!
JoJo Harmon is a realtor with Prudential California Realty in Orange County California and has earned the Seniors Real Estate Specialist designation (SRES). Realtors with the SRES designation have demonstrated the knowledge and expertise to counsel senior clients through lifestyle transitions. She specialized in residential homes, relocations, investment properties, senior 55+ housing and fine homes and estates from Newport Beach to San Clemente.
Article Source: http://EzineArticles.com/?expert=JoJo_Harmon
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