| |
| |
|
Real Estate Information |
|
|
|
10 Things You Shouldnt Do When Youre Buying a Home
Home Buying Don'ts Your home buying process is well underway. The sellers accepted your offer to purchase. The home is officially under contract and you're counting down the days to closing. The lender pre-approved you, so buying the house is a sure thing, right? Not quite. Nothing is certain until the keys are in your hands. There are still major hurdles to get past before you close, and your actions between now and closing can create headaches, slowdowns, and even stop the transaction. 1. Don't Make a Major Purchase You've just found out your credit is A+. That's great news, because a new car would look fantastic in the driveway of your new home. But hang on--if you are depending on a mortgage to move in, you'd best wait until after closing to buy the car. An increase in your debt to income ratio reduces the amount of monthly income available for your mortgage payment. If you tack on a higher car payment, the bank might decide you cannot afford the home. Using cash to purchase the car could also create a problem, since banks consider cash reserves when approving your mortgage. If you must make a major purchase before closing, talk to your loan officer before you do it. 2. Don't Change Jobs Unless It's Necessary Home Lenders like to see a consistent job history. They aren't usually as nervous if you change jobs within the same field, but it's better to stay put until the keys to the house are in your hand. 3. Don't Give an Earnest Money Deposit Directly to a For Sale By Owner Seller Your good faith deposit should go into a trust account. Some for sale by owner sellers don't understand that funds are to be applied to your expenses at closing. I've heard many stories about sellers who spent the deposit money prior to closing. When the transactions didn't take place for valid reasons--such as financing or repair issues, the buyers had to fight for a refund. Find an attorney or other neutral party who will hold the deposit for you until closing day and make sure your contract dictates what happens to the funds if the transaction doesn't close. 4. Don't Let Your Emotions Take Over Keep a cool head during the entire home buying process, especially during and after an inspection. Be realistic. No home is perfect, especially older homes. It's not unusual for new owners to take care of some repairs themselves. Don't let the seller's refusal to do a small repair kill the deal on a home you truly love. On the other hand, don't fall so much in love with the house that you'll buy it no matter what needs to be done--unless you're absolutely sure you can handle it emotionally and financially. Decide what type of repairs you can realistically tackle, then stick with the decision. 5. Don't Forget to Switch Utilities That sounds simple, but you'd be surprised how many people forget to apply for utility service at their new home. Call the utility companies as soon as you have a contract. Find out how many days lead time they need to switch the service, then get back with them when you have a firm closing date. Don't forget to discontinue services at your old home. 6. Line Up Your Hazard Insurance A no-brainer, right? But it's another often-forgotten task that buyers scramble to take care of at the last minute. Before closing, your lender will want to see an insurance binder showing you have coverage for the new home. Get it as early as possible so that closing isn't delayed. In some locations, additional types of insurance coverage might be necessary. Talk to your lender about insurance requirements well before the closing date. 7. Don't Become Best Friends with the Seller I'll get some flack on this one. It's great to be friendly, but don't get into too many long discussions with the sellers, because personality conflicts often cloud judgments. Remember, this is their home. You're no doubt excited about moving in, and if you didn't like the house you wouldn't have offered to buy it. But you'll make changes--everyone does. A casual statement about "ripping up that ugly carpet" might be hurtful enough to keep the seller from negotiating with you about repairs or other issues that crop up. 8. Don't Panic if the Appraisal Comes in Low At least not at first. There are some things you (and your agent) can do to correct the problem. Study your options. 9. Don't Go It Alone If you're working with an agent, it's the agent's duty to track many of the day to day details that involve the lender, the seller, or the seller's agent. 10. Don't Ignore Home Lender Requirements Know what is expected of you and take care of it. For instance, a Certificate of Eligibility is required to move forward on a VA loan. That's something you must handle yourself. Answer lender questions and provide required paperwork as quickly as possible--your closing depends on it. Special Loans (http://www.special-loans.com) specialises in providing secured finance where banks will not. If you have credit problems, are fully employed or self-employed, have income issues or employment issues, we have the best solution for you! We provide Non-conforming home loans offering wholesale home loan rates as well as Standard Home Loans, unsecured personal loans, refinance products.
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
Top 7 Reasons Why FSBOs Fail To Sell Their Home On Their Own! In the United States, less than 10% of all For Sale by Owners (FSBOs), are successful in selling their home by themselves. That*s because most people just give up because they don*t realize from the beginning the difficulty and complexity of the job ahead. Real Estate Investment Requires A Team I had a hard time at first with real estate investment. One of the reasons was that I tended to be a "lone wolf," trying to do too much myself. How to Get the Best Price for Your House The best price to sell your home is always determined by how you compare against your competition, the house down the street. If your property looks better than the next guy's the customer will buy yours. Why Real Estate? Five months ago I was faced with a decision to keep doing the same thing that I loved or go and try something different and change my life for the better. Well would you like to know what happened?Maybe next time. Preparing To Make A Zero Down Offer I'm going to focus on the Seller of a hypothetical property you have found and the offer that you are going to make. You want to write it so it has a reasonable chance of being accepted. Want A $10,000 House? How do you find a house for ten or twenty thousand dollars? In three steps:1. Find towns that are affordable. How to Show & Sell Your California Home Seller's Showing Instructions1. When the agent arrives with the potential buyers, have the window coverings open to let in as much sunlight as possible. Real Estate Investing Deals That SkyRocket Your Net Worth 10-Fold Consider these parameters for a real estate deal:Property Value: $250,000 Purchase Price: $160,000 Repairs: $2,500If you analyze the numbers, you see that the equity available in this deal is $87,500 (Property Value minus Purchase Price minus Repairs).So here's a hypothetical question for you: Assuming that the information above is accurate, and the property is located in an area that you view as acceptable and/or favorable, then:If I offered to give you this deal in exchange for $10,000 in cash, would you do it?Remember - this is hypothetical. Real Estate Investing - Maximum Leveraging of Your Money At this moment, you have access to some amount of money, from the extremes of only pocket change to the reserves of Bill Gates or Warren Buffet.Suppose you want to invest your funds into some vehicle that will multiply the return. Unravelling The Real Estate Buying Process in Canada If you're a foreign national thinking about investing in the real estate market in Canada here's a run down of the typical buying process you should expect to encounter together with a general explanation of mortgages available to assist with the purchase.First things first though, you have to find your ideal property of course!But let's assume you've done that with the help of a good estate agent and you're ready to move forward with an offer. Property Types A, B, C And D One of the biggest problems individuals just starting out have is the type of property they look for, and working outside their immediate area. One of the constants around the country and for every state, is that there are the most desirable areas to live and the least desirable; and then those that fall in between. Secrets of Making Money from Real Estate - Part 5 Where to from here:One property is great, but It wont make you very wealthy. Below is the expansionary model of what I think a good real estate portfolio should look like. Real Estate Investing - The Job Escape Real estate investing is pretty unusual in lots of ways. Real estate investing is creative. Do You Need to Download a Landlord Inventory On-Line Today? Do you need to download a Landlord Inventory on-line now? Why is it so important to have a Landlord Inventory?Firstly, if you are a landlord, you need to be prepared. As much as we all like to think we can trust everyone, it is very important that buy to let landlords protect their investment property as thoroughly as possible. 11 Different Ways to Participate in The New Millennium Real State Boom Many parts of the country are going through a real estate boom. In recent reports real estate is showing double digit growth in many parts of the country. FSBO Novel Preface PrefaceWe are For Sale By Owners, "FSBOs." We spend our time trying to sell ourselves and others on what we are doing or what we want to believe. Dubai or not to Buy? A Short Assessment of the Dubai Property Market Never has there been such an ambitious and creative drive to establish a property market as has been witnessed in Dubai over the past three years. Running short on oil reserves, Dubai's crown prince, Sheikh Mohammed Al Marktoum, set out to turn Dubai into the financial, commercial and tourism capital of the Middle East and in the space of three years he has more than succeeded. Condos Vs. Condo Hotels For Vacaton Home Ownership Condo hotels, also called condotels, are a relatively new concept in vacation home ownership. Rapidly gaining popularity, numerous condo hotels are now being built in Florida, Las Vegas, Chicago, Toronto, the Caribbean and many other locales around the U. If You Cant Afford to Retire...Move According to Warren Bland, PhD, an award-winning author and geographer at Cal State, people have a great option. It's called "equity-take" that is, the difference in cost of comparable housing between your present community and the more affordable one to which you could move. Why I Love Country Living As somone who has lived in both places, I can tell you that country living certainly beats the hustle and bustle of city life! Living in a rural area has advantages that simply can't be bought at any price.In the city I was bombarded with the sounds of horns blowing and sirens blaring.
|
 Home  Contact
|
| Real Estate Information © 2006 |
