Excellent Tips for Buyers!
When considering the purchase of any real estate, the questions you have can be overwhelming.
Here are some tips to help you become a property owner and take away some of the concerns you may have.
Hire a real estate professional, we only consider using Realtors.
The first step is to select a professional to help you find your dream home and fine-tune your financial expectations. This is where we can help. We have over 20 years experience working with realtors and real estate sales people. We know what to look for in a true professional. There is a difference between real estate agents and realtors. To be a realtor, a real estate agent must be a member of the national association of realtors. Each realtor that we help find is verified to be a member of the national association of realtors and subscribes to a strict code of ethics.
Look at several mortgage rates and terms offered by different companies.
A small difference in the percentage rate will make a big difference in how much you pay over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35 per month. Over 30 years, that's $12,600.
How much can you afford.
Contact your lender and get pre-qualified, this will determine how much you can afford. It allows you to move quickly when you find the property that is right for you, especially when there are other interested buyers. It also lets the seller know that you are serious and really can afford to buy the property. Use caution here, take time and make sure you have counted all your monthly obligations.
Know what you want.
Create a realistic idea of the property you'd like to buy. What features are most important to you? Make two lists: one of the items you can't live without and one of the features you would enjoy. Refine the lists as you house hunt. It is also helpful to search online to see what is currently available on the market. Your real estate professional can then show you houses that meet your expectations.
Visit properties that you are interested in and are in your price range.
Now you're ready to visit properties. Ask your Realtor to arrange showings, and keep track of the properties you've seen. Doing this will give you an idea of what is available within your price range and will help you determine the properties you want to take a second or third look at. Your Realtor will work hard for you; concentrate your time looking at properties that are most appealing to you.
Keep in mind that you may someday want to sell the property.
In some areas, a swimming pool actually detracts from a home's value and makes it harder to sell. In neighborhoods with two-car, attached garages, a single-car or detached garage may impact the home sale and future value. Your professional Realtor can point out features that hurt, and those that help, resale value.
Take along a notebook to rate the houses you tour.
After touring each home, write down what you liked and didn't like. Develop a rating system that will help narrow the field down. For example, pick the house you like best on day one and compare all other houses to it. When you find a better one, use the new favorite as the standard.
Make an offer.
Once you've located your dream house, it's time to get serious about the financial and contractual side of the purchase. Your Realtor will be a strong advantage since you and the seller have different goals.
Have a professional do a home inspection.
After your offer is accepted, set up a home inspection. Some lenders require it, but all home buyers should have this done. It's common to find problems, including leaky roofs, cracked walls, insect infestations and foundation problems. Your real estate professional can help find a reputable inspector, and will negotiate to get you the most for your money once the inspector's report is final. If you negotiate repairs as part of the purchase, ask for a "walk through" before finalizing the paperwork. Ask your real estate expert about home protection plans, which may save you money in the near future.
What to do before closing.
Before your closing date, make sure all the paperwork is complete and you've made all necessary deposits. The mortgage, title, homeowners insurance and any other paperwork required by local or state governments should be completed.
Things to consider before moving to your new home.
Contact the utility companies to turn on electricity, water and gas. Clean or replace the carpet, the best time for a renovation is often before you move in. Notify your local post office of your new address.