The Most Important Information You Will need When Buying A Home
Are You Seeking a New Home?
Home buyers fall into two categories: first-time buyers and experienced buyers. Experienced buyers remember viewing homes and talking to loan officers. But things change quickly in our society and both categories of buyers can learn something new about the home buying process.
The attitude the buyer brings to the quest for a new home can have a powerful effect on the success of the search. Realtors report that buyers who get excited about the homes they are viewing tend to be happier with the home they choose to buy. These successful buyers throw themselves into the search using the thousands of internet web sites that lists homes for sale; they attend open house showings; and they study the neighborhoods and areas in which they would like to live.
Drive around in the neighborhoods where you would like to live. Look for "for sale" signs and take pictures and notes. The realtor you choose to work for you can show any home you ask to view. So get out there and have some fun. You might be surprised at how much house you can afford!
Are you doing well in your business and feel that it is time for a bigger home in a nicer neighborhood? Is your family outgrowing your present house? Did you drive by a beautiful house and were immediately filled with envy?
All of these are good reasons to buy a new home but take some time to think about what you really want and need in a new house before beginning the search. Make a list of what you really need in a home, say, for instance, the number of bedrooms or baths. Then put down some of the things you really want to include in your dream home. The critical thinking comes next as you ask yourself, "What can I afford?" and you start making compromises between needs and wants.
Real estate professionals believe that when buyers have gone through this process before they begin searching for a house, they are more successful in their search and more satisfied with the result.
Buying a home is one of the most expensive things most people will purchase during their lifetime so it is as important to shop for financing as it is to shop for the house. A few points in the interest rate you pay can really make a difference in what you pay for the house over a thirty year loan. It's a buyers' market right now with lovely homes going for affordable prices and financing being very reasonable. Check with your local bank or do some shopping around for a lower interest rate. Remember, though, that your credit rating will affect the interest rate significantly. Before shopping for a loan, run the numbers and be sure of the amount you can comfortably spend on your mortgage each month. Also remember that the more money you can afford to put down, the better your financial position will be.
Some lenders offer non-traditional loans to buyers. These balloon or interest-only mortgages can allow a buyer to purchase a more expensive house. For instance, the balloon loan can be set up so that the buyer makes small monthly payments for a designated 2-3 years and then pays the balance of the loan in one large (balloon) payment. These loans can be a risky proposition so be sure to talk these alternatives over with your loan officer and your realtor.
Popular Reality TV shows illustrate scenarios of buying a home that requires repairs and upgrades. The happy buyers purchase the home in an area with appreciating home values, make necessary repairs, and ‘flip' the house making a nice profit. If only it was that easy!
If you are financing the purchase of the house with a bank loan, FHA insured, or Fannie Mae/ Fannie Mac, certain requirements as to the condition of the house will have to be met. Your realtor will be able to advise you on this.
To make a profit from your home requires the cash to invest on the repairs and the knowledge to do some of the work yourself. You may not be able to live in the house while certain repairs are being carried out. Making the regular mortgage payments, paying rent to live somewhere else, and paying for the upgrades for the house at the same time can strain the budget so be prepared when contemplating this type of home purchase. Some banks do home improvement/mortgage loans, so don't overlook this source of financing. It is possible to make money on a house if you are prepared to make the sacrifices required to do it.
Be aware that many sellers want a pre-sale home inspection done by a certified home inspector. These inspections are very meticulous checking the condition of all the systems in the house. Be sure that any work done on the house by you or by subcontractors is up to local codes to avoid problems later on.
The house is repaired and upgraded and listed with a realtor and you are prepared to ‘rake in the dough' from all your hard work on the house. But the house doesn't sell. Six months go by and it still hasn't sold. At this point you could get discouraged. Don't. By your hard work, you have increased the value of the house and thereby have increased your equity in the house. You have a beautiful house to live in and eventually you will realize your profit. For the savvy shopper, real estate is the best investment you can make.
You've had a wonderful time shopping for that perfect home; you've surfed the web; driven the streets; read the ads; and worked with your realtor. You've found the perfect house and you want to make an offer and buy it. This is where your realtor does the best work. You make an offer but there might be other offers for the property. Your realtor can explain some of the traditional negotiating points that might give you an edge: pre-sale home inspections, and number of days before seller has to vacate after closing.
The process of shopping for a new home should be fun. Remember that any realtor you contact to help you in your search has years of experience in buying and selling homes and is there to serve you, the customer. Don't be bashful about asking questions. Realtors are a fund of information about real estate contracts, home financing, homeowner associations, and even neighborhood schools. Happy hunting.
Home buyers fall into two categories: first-time buyers and experienced buyers. Experienced buyers remember viewing homes and talking to loan officers. But things change quickly in our society and both categories of buyers can learn something new about the home buying process.
The attitude the buyer brings to the quest for a new home can have a powerful effect on the success of the search. Realtors report that buyers who get excited about the homes they are viewing tend to be happier with the home they choose to buy. These successful buyers throw themselves into the search using the thousands of internet web sites that lists homes for sale; they attend open house showings; and they study the neighborhoods and areas in which they would like to live.
Drive around in the neighborhoods where you would like to live. Look for "for sale" signs and take pictures and notes. The realtor you choose to work for you can show any home you ask to view. So get out there and have some fun. You might be surprised at how much house you can afford!
Why Do You Want a New House?
Are you doing well in your business and feel that it is time for a bigger home in a nicer neighborhood? Is your family outgrowing your present house? Did you drive by a beautiful house and were immediately filled with envy?
All of these are good reasons to buy a new home but take some time to think about what you really want and need in a new house before beginning the search. Make a list of what you really need in a home, say, for instance, the number of bedrooms or baths. Then put down some of the things you really want to include in your dream home. The critical thinking comes next as you ask yourself, "What can I afford?" and you start making compromises between needs and wants.
Real estate professionals believe that when buyers have gone through this process before they begin searching for a house, they are more successful in their search and more satisfied with the result.
Do We Have to Talk About Money?
Buying a home is one of the most expensive things most people will purchase during their lifetime so it is as important to shop for financing as it is to shop for the house. A few points in the interest rate you pay can really make a difference in what you pay for the house over a thirty year loan. It's a buyers' market right now with lovely homes going for affordable prices and financing being very reasonable. Check with your local bank or do some shopping around for a lower interest rate. Remember, though, that your credit rating will affect the interest rate significantly. Before shopping for a loan, run the numbers and be sure of the amount you can comfortably spend on your mortgage each month. Also remember that the more money you can afford to put down, the better your financial position will be.
Some lenders offer non-traditional loans to buyers. These balloon or interest-only mortgages can allow a buyer to purchase a more expensive house. For instance, the balloon loan can be set up so that the buyer makes small monthly payments for a designated 2-3 years and then pays the balance of the loan in one large (balloon) payment. These loans can be a risky proposition so be sure to talk these alternatives over with your loan officer and your realtor.
Is it Feasible to Buy a Fixer-Upper?
Popular Reality TV shows illustrate scenarios of buying a home that requires repairs and upgrades. The happy buyers purchase the home in an area with appreciating home values, make necessary repairs, and ‘flip' the house making a nice profit. If only it was that easy!
If you are financing the purchase of the house with a bank loan, FHA insured, or Fannie Mae/ Fannie Mac, certain requirements as to the condition of the house will have to be met. Your realtor will be able to advise you on this.
To make a profit from your home requires the cash to invest on the repairs and the knowledge to do some of the work yourself. You may not be able to live in the house while certain repairs are being carried out. Making the regular mortgage payments, paying rent to live somewhere else, and paying for the upgrades for the house at the same time can strain the budget so be prepared when contemplating this type of home purchase. Some banks do home improvement/mortgage loans, so don't overlook this source of financing. It is possible to make money on a house if you are prepared to make the sacrifices required to do it.
Be aware that many sellers want a pre-sale home inspection done by a certified home inspector. These inspections are very meticulous checking the condition of all the systems in the house. Be sure that any work done on the house by you or by subcontractors is up to local codes to avoid problems later on.
The house is repaired and upgraded and listed with a realtor and you are prepared to ‘rake in the dough' from all your hard work on the house. But the house doesn't sell. Six months go by and it still hasn't sold. At this point you could get discouraged. Don't. By your hard work, you have increased the value of the house and thereby have increased your equity in the house. You have a beautiful house to live in and eventually you will realize your profit. For the savvy shopper, real estate is the best investment you can make.
You've Found THE House, Now What?
You've had a wonderful time shopping for that perfect home; you've surfed the web; driven the streets; read the ads; and worked with your realtor. You've found the perfect house and you want to make an offer and buy it. This is where your realtor does the best work. You make an offer but there might be other offers for the property. Your realtor can explain some of the traditional negotiating points that might give you an edge: pre-sale home inspections, and number of days before seller has to vacate after closing.
The process of shopping for a new home should be fun. Remember that any realtor you contact to help you in your search has years of experience in buying and selling homes and is there to serve you, the customer. Don't be bashful about asking questions. Realtors are a fund of information about real estate contracts, home financing, homeowner associations, and even neighborhood schools. Happy hunting.
