Buying a house is one of the largest personal investments you can make.
If you are organized and in control, you will have a better chance of getting the best home deal possible with the least amount of stress.
Follow these simple guidelines for better results in getting your piece of the American Dream: *Don't Make Any Major Credit Purchases Right Before you Buy a Home Don't go on a spending spree using credit if you are thinking about buying a home, or in the process of buying a new home.
Your mortgage pre-approval is subject to a final evaluation of your financial situation.
Every $100 you pay per month on a credit payment could cost your about $10,000 in home eligibility.
The last thing you want is to know that you could have purchased a new home had you curbed the urge to spend.
* Be Wary About the Listing Agent-Choose a Realtor who represents YOU Traditionally, buyers would stop at a house for sale, call the phone number on the sign, and be shown the property by an agent sitting there.
But the problem with that method is that the agent sitting there is usually the listing agent.
In most cases, he or she represents the seller, unless they are working as a transaction broker, in states that allow agents to represent both parties.
Be careful about what you say to a listing agent.
A listing agent's role is to find a buyer, and to get as high a price and as good terms as possible for the seller.
Unless working as a transaction broker, he or she is required to inform the seller of any facts that may influence the seller's decision about whether to accept an offer or not.
Always keep in mind that you want the lowest price and the best terms.
If an agent is not directly working for you, they could very well be working against you.
* Pre-Qualified vs.
Pre-Approved It used to be that buyers could go house shopping and when they have found their dream home, then they go to get pre-approved.
However, in today's market, that has proven to be one of the least effective methods in landing the dream home.
Most lenders can pre-qualify you for a mortgage over the phone.
However, being pre-qualified and pre-approved are different things.
Pre-approval means that you have applied for a mortgage; you have filled out the mortgage application, received your credit report, and verified your employment, assets, etc.
When you are pre-approved, you know exactly what the maximum loan amount will be.
Being pre-qualified does not count for much if you are competing with other buyers who are pre-approved.
When you are pre-approved, you and the seller know exactly how much house you can afford.
It gives you credibility as an interested buyer and lets the seller know immediately that you will qualify for a loan to buy their property.
* Build a Plan of Action and Get Ready Before you can build a plan of action, take the time to lay the groundwork for your decision-making process.
First, ask yourself how much can you afford to pay for a home.
If you're not sure on the price range, find a lender and get preapproved.
Preapproval will let you know how much you can afford so that you can look for homes in your price range.
Getting pre-approved helps you to alleviate some of the anxieties that come with home buying.
You know exactly what you qualify for and at what rate, you know how large your monthly mortgage payments will be, and you know how much you will have for a down payment.
Once you are pre-approved, you avoid the frustration of finding homes that you think are perfect, but are not in your price range.
Second, ask yourself where you want to live and what is the best location for you and/or your family.
Things to consider: *convenience for all family members *proximity to work, school *crime rate of neighborhood *local transportation *types of homes in neighborhood, for example condos, town homes, co-ops, newly constructed homes etc.
* Importance of Inspection As a buyer, you are entitled to know exactly what you are getting.
Don't take for granted what you see and what the seller or the listing agent tells you.
A professional home inspection is something you MUST do, whether you are buying an existing home or a new one.
An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and getting both an oral and written opinion as to its condition.
Make sure the report will be done by a professional.
Not only should you never skip an inspection, but you should also go along with the inspector during inspection.
This gives you a chance to ask questions about the property and get answers that are not biased.
In addition, the oral comments are typically more revealing and detailed than what you will find on the written report.
Once the inspection is complete, review the inspection report carefully.
You have to demand an inspection when you present your offer.
It must be written in as a contingency; if you do not approve the inspection report, then you don't buy.
Most real estate contracts automatically provide an inspection contingency.
If you are organized and in control, you will have a better chance of getting the best home deal possible with the least amount of stress.
Follow these simple guidelines for better results in getting your piece of the American Dream: *Don't Make Any Major Credit Purchases Right Before you Buy a Home Don't go on a spending spree using credit if you are thinking about buying a home, or in the process of buying a new home.
Your mortgage pre-approval is subject to a final evaluation of your financial situation.
Every $100 you pay per month on a credit payment could cost your about $10,000 in home eligibility.
The last thing you want is to know that you could have purchased a new home had you curbed the urge to spend.
* Be Wary About the Listing Agent-Choose a Realtor who represents YOU Traditionally, buyers would stop at a house for sale, call the phone number on the sign, and be shown the property by an agent sitting there.
But the problem with that method is that the agent sitting there is usually the listing agent.
In most cases, he or she represents the seller, unless they are working as a transaction broker, in states that allow agents to represent both parties.
Be careful about what you say to a listing agent.
A listing agent's role is to find a buyer, and to get as high a price and as good terms as possible for the seller.
Unless working as a transaction broker, he or she is required to inform the seller of any facts that may influence the seller's decision about whether to accept an offer or not.
Always keep in mind that you want the lowest price and the best terms.
If an agent is not directly working for you, they could very well be working against you.
* Pre-Qualified vs.
Pre-Approved It used to be that buyers could go house shopping and when they have found their dream home, then they go to get pre-approved.
However, in today's market, that has proven to be one of the least effective methods in landing the dream home.
Most lenders can pre-qualify you for a mortgage over the phone.
However, being pre-qualified and pre-approved are different things.
Pre-approval means that you have applied for a mortgage; you have filled out the mortgage application, received your credit report, and verified your employment, assets, etc.
When you are pre-approved, you know exactly what the maximum loan amount will be.
Being pre-qualified does not count for much if you are competing with other buyers who are pre-approved.
When you are pre-approved, you and the seller know exactly how much house you can afford.
It gives you credibility as an interested buyer and lets the seller know immediately that you will qualify for a loan to buy their property.
* Build a Plan of Action and Get Ready Before you can build a plan of action, take the time to lay the groundwork for your decision-making process.
First, ask yourself how much can you afford to pay for a home.
If you're not sure on the price range, find a lender and get preapproved.
Preapproval will let you know how much you can afford so that you can look for homes in your price range.
Getting pre-approved helps you to alleviate some of the anxieties that come with home buying.
You know exactly what you qualify for and at what rate, you know how large your monthly mortgage payments will be, and you know how much you will have for a down payment.
Once you are pre-approved, you avoid the frustration of finding homes that you think are perfect, but are not in your price range.
Second, ask yourself where you want to live and what is the best location for you and/or your family.
Things to consider: *convenience for all family members *proximity to work, school *crime rate of neighborhood *local transportation *types of homes in neighborhood, for example condos, town homes, co-ops, newly constructed homes etc.
* Importance of Inspection As a buyer, you are entitled to know exactly what you are getting.
Don't take for granted what you see and what the seller or the listing agent tells you.
A professional home inspection is something you MUST do, whether you are buying an existing home or a new one.
An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and getting both an oral and written opinion as to its condition.
Make sure the report will be done by a professional.
Not only should you never skip an inspection, but you should also go along with the inspector during inspection.
This gives you a chance to ask questions about the property and get answers that are not biased.
In addition, the oral comments are typically more revealing and detailed than what you will find on the written report.
Once the inspection is complete, review the inspection report carefully.
You have to demand an inspection when you present your offer.
It must be written in as a contingency; if you do not approve the inspection report, then you don't buy.
Most real estate contracts automatically provide an inspection contingency.
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