1. Not asking enough questions of your lender and missing out on the best deal.
-Know your options, there are many variables such as ARMs vs. Fixed rates and 15, 20, and 30 year loans.
2. Not acting quickly enough to make a decision and someone else buys the house.
3. Not finding the right agent whose willing to help you through the homebuying process.
4. Not doing enough to make your offer look good to a seller.
-Price is not the only thing that is important to a seller. Think of other terms like closing date, pre-approved financing, contingencies, inspections, and closing costs.
5. Not thinking about resale before you buy. The average first-time buyer only stays in a home for four years.
Friday, December 14, 2007
Monday, November 26, 2007
How to Choose a REALTOR
1. Ask how long they have been in residential real estate.
2. Ask if it is their full-time job.
3. Ask what designations they hold. (Designations, such as GRI and CRS, which require that real estate professionals take additional, specialized real estate training, are held by only about one-quarter of real estate practitioners.)
4. Ask how many homes they sold last year.
5. Ask if they will represent you exclusively, or if they will represent both the buyer and the seller in the transaction. (While it is legal to represent both parties in a transaction, it’s important to understand where their obligations lie. A good REALTOR will explain the agency relationships to you and describe the rights of each party.)
6. Ask if they can recommend service providers who can assist you in obtaining a mortgage, making repairs on your home, and other things you need done.
7. Ask what type of support and supervision the real estate brokerage can provide them. (Having resources, such as in-house support staff, access to a real estate attorney, or assistance with technology, can help the real estate professional assist you in your transaction.)
8. Ask how they will keep you informed about the progress of the transaction. How frequently? Using what media? (This is not a question with a correct answer, but that one reflects your desires. Do you want updates twice a week or don’t want to be bothered unless there’s a reason? Do you prefer phone, e-mail, or a personal visit?)
9. Ask for testimonials from clients who worked with them in the past.
10. Finally, choose a REALTOR who listens and understands to your needs and desires. This person will be assisting you in possibly one of the largest financial decisions you will make in your lifetime, they should be someone enjoy working with.
2. Ask if it is their full-time job.
3. Ask what designations they hold. (Designations, such as GRI and CRS, which require that real estate professionals take additional, specialized real estate training, are held by only about one-quarter of real estate practitioners.)
4. Ask how many homes they sold last year.
5. Ask if they will represent you exclusively, or if they will represent both the buyer and the seller in the transaction. (While it is legal to represent both parties in a transaction, it’s important to understand where their obligations lie. A good REALTOR will explain the agency relationships to you and describe the rights of each party.)
6. Ask if they can recommend service providers who can assist you in obtaining a mortgage, making repairs on your home, and other things you need done.
7. Ask what type of support and supervision the real estate brokerage can provide them. (Having resources, such as in-house support staff, access to a real estate attorney, or assistance with technology, can help the real estate professional assist you in your transaction.)
8. Ask how they will keep you informed about the progress of the transaction. How frequently? Using what media? (This is not a question with a correct answer, but that one reflects your desires. Do you want updates twice a week or don’t want to be bothered unless there’s a reason? Do you prefer phone, e-mail, or a personal visit?)
9. Ask for testimonials from clients who worked with them in the past.
10. Finally, choose a REALTOR who listens and understands to your needs and desires. This person will be assisting you in possibly one of the largest financial decisions you will make in your lifetime, they should be someone enjoy working with.
Friday, November 16, 2007
Steps To Prepare for Homeownership
1. Decide how much home you can afford. Generally, you can afford a home equal in value to between two and three times your gross yearly income.
2. Develop a wish list of what you’d like your home to have. Then prioritize the features on your list into needs vs. wants.
3. Decide the area you want to live in. Consider items such as schools, commuting, recreational facilities, area expansion plans, and safety.
4. Determine if you have enough saved to cover your down payment and closing costs. Closing costs, including taxes, insurance, and transfer fees average between 2 percent and 7 percent of the home price.
5. Get your credit in order. Obtain a copy of your credit report. The truly free site is www.annualcreditreport.com this is the one to use, not those ones you see on TV.
6. Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you. Remember you must be comfortable with your payments. Just because you qualify doesn't mean you can afford it!
7. Organize all the documentation a lender will need to pre-approve you for a loan. Tax returns, W2s, bank statements, and pay stubs are the primary sources your lender will ask for.
8. Do research to determine if you qualify for any special mortgage or down payment assistance programs, ie. VA, FHA, or My Community Mortgages.
9. Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
10. Find an experienced REALTOR like me who can help you through the process. Watch for next week's post for information on how to choose a REALTOR.
As a REALTOR I specialize in educating and informing buyers and sellers to make the best decisions they can when it comes to real estate.
2. Develop a wish list of what you’d like your home to have. Then prioritize the features on your list into needs vs. wants.
3. Decide the area you want to live in. Consider items such as schools, commuting, recreational facilities, area expansion plans, and safety.
4. Determine if you have enough saved to cover your down payment and closing costs. Closing costs, including taxes, insurance, and transfer fees average between 2 percent and 7 percent of the home price.
5. Get your credit in order. Obtain a copy of your credit report. The truly free site is www.annualcreditreport.com this is the one to use, not those ones you see on TV.
6. Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you. Remember you must be comfortable with your payments. Just because you qualify doesn't mean you can afford it!
7. Organize all the documentation a lender will need to pre-approve you for a loan. Tax returns, W2s, bank statements, and pay stubs are the primary sources your lender will ask for.
8. Do research to determine if you qualify for any special mortgage or down payment assistance programs, ie. VA, FHA, or My Community Mortgages.
9. Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
10. Find an experienced REALTOR like me who can help you through the process. Watch for next week's post for information on how to choose a REALTOR.
As a REALTOR I specialize in educating and informing buyers and sellers to make the best decisions they can when it comes to real estate.
Friday, November 9, 2007
Credit
The topic of the day is credit. Credit is one of the most widely misunderstood components of home buying. In order to purchase a home you must make sure your credit is the best it can be. Having good credit can save you money when it comes to your mortgage. Your credit score affects your interest rate, mortgage insurance rate, and your home purchasing power. The best way to make sure you have good credit is to pay your bills on time, and never default on any loans. Below are ways you can improve your credit.
Now is a great time to buy! Interest rates are at historic lows and home prices stable. It's a buyer's market which means sellers are more negotiable than ever and home prices are reasonable.
8 Ways to Improve Your Credit
Credit scores, along with your overall income and debt, are a big factor in determining if you’ll qualify for a loan and what loan terms you’ll be able to qualify for.
1. Check for and correct errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.
2. Pay down credit card bills. If possible, pay off the entire balance every month. However, transferring credit card debt from one card to another could lower your score.
3. Don’t charge your credit cards to the maximum limit. Try to have a balance of no more than 10% of the available credit at one time.
4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.
5. Don’t purchase big-ticket items for your new home on credit cards until after the loan is approved. The amounts will add to your debt.
6. Don’t open new credit card accounts before applying for a mortgage. Having too much available credit can lower your score.
7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.
8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.
This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation. To obtain a complete copy of the publication, “Knowing and Understanding Your Credit,” visit http://www.homebuyingguide.org.
Now is a great time to buy! Interest rates are at historic lows and home prices stable. It's a buyer's market which means sellers are more negotiable than ever and home prices are reasonable.
8 Ways to Improve Your Credit
Credit scores, along with your overall income and debt, are a big factor in determining if you’ll qualify for a loan and what loan terms you’ll be able to qualify for.
1. Check for and correct errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.
2. Pay down credit card bills. If possible, pay off the entire balance every month. However, transferring credit card debt from one card to another could lower your score.
3. Don’t charge your credit cards to the maximum limit. Try to have a balance of no more than 10% of the available credit at one time.
4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.
5. Don’t purchase big-ticket items for your new home on credit cards until after the loan is approved. The amounts will add to your debt.
6. Don’t open new credit card accounts before applying for a mortgage. Having too much available credit can lower your score.
7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.
8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.
This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation. To obtain a complete copy of the publication, “Knowing and Understanding Your Credit,” visit http://www.homebuyingguide.org.
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