first time home buyer – owner loan

February 24, 2011

Moving Tips for First-Time Home Buyers to Save You Money

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 12:19 pm
Janet Corniel asked:




If you are about to embark on purchasing a home for the first time, congratulations! It is a wonderful feeling to own your own home for the first time. However, there are many hidden costs that are associated with purchasing and moving into your new home that you may not be fully aware. The best way to mitigate these costs is preparation and education.

Interest rates are historically low right now, which will work in your favor. However, before you even shop for a home, run your credit score. This is key. You do not want to fall in love with a home and find out you can not pre-qualify to purchase it. Lenders are extremely picky these days. Look at your debt-to-income ratio. Make sure it would be acceptable to a potential lender.

After you clear that first hurdle, look for a reputable realtor. You may choose to go it alone to prevent paying commissions but I suggest you reevaluate that choice, especially as a first-time home buyer. It is so important to have someone represent your interest and educate you in the process to prevent losing money. I also suggest you have your realtor just represent you and not both parties (seller and buyer). We have done both and even with a good realtor, this situation is just not optimal.

Once you are pre-qualified, have your realtor and found the home for you, be prepared for all of the steps and costs involved. You will have to do a home inspection, which will cost approximately $400-$500. You do not want to skimp on this. It is important to note the costs may seem large at first but when you apply it to the overall percentage of the cost of the home, it is minimal. It is worth paying $500 for a home inspection in order to find out the home may be in such disrepair you can’t afford to fix it.

Closing costs are another expense that may be the difference of getting the deal done or not. Make sure you review your good-faith estimate carefully. This will detail all of the closing costs and what you will have to bring to the table. If you have any questions or if there are some discrepancies take it up with your lender right away. You do not want to be surprised at the closing table. A good realtor will help guide you through the process.

After you make it through your closing and get your keys, you are not out of the woods yet. You still have moving and settling-in costs. If you are moving yourself, there are many options out there for you, evaluate which is best for your circumstances. Distance and the amount of things you own will dictate the best option for you. There are ways to save yourself money. If you have a moving company move you, make sure you get competitive bids and evaluate them carefully. You can also pack it yourself and use a portable storage device that will move to your location. You can also do everything yourself and rent a truck and pack and move. If you are just starting out, the later may be best for you. However, if you are combining households and/or have a lot of stuff you may have someone do the heavy work for you. Either way, set a budget and work within it. In the stress of a move, it is easy to spend if you do not set up limits ahead of time.

Settling-in costs are another expense that will sneak up on you if you are not careful and budget for it. These may include but are not limited to carpet cleaning, painting, window treatments, appliances, landscaping, restocking a kitchen, furniture, insurance and utilities. When you are looking at homes to buy, keep these settling costs in mind. Take a notebook with you and write these possible costs down. It will help you plan and decide on which home will be the most cost-effective for your budget. It may also give you some negotiating power in a buyers market like we are in now. Due to the economy, builders are really willing to work with buyers. Many are now throwing in upgrades like granite and landscaping packages. So keep them in mind when looking at homes.

In any event, it is so important to do your research ahead of time. Set a budget and prepare yourself. The more prepared and informed you are, the less likely you will lose money.

Gilbert

August 16, 2010

Home Inspection – First Time Buyer

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 1:37 pm
M Siddique asked:




If you’re buying a home for the first time, you certainly have both our joy and our condolences. The myriad of details is tremendous, which are all costing money, like having to come up with the coin for a home inspection fee. So here’s something to make you feel better right away. Gudrun reports that often taxes and stamp duty in Europe are even higher and the cost for a certified a home inspection can be a lot higher than the United States. And it’s still it’s a hit to the wallet, so let’s see what we can do to make a home inspection work to your best advantage.

The first thing to suggest is make sure you also have our research in Home Inspection Overview. Okay! Assuming you have that article in your hand and know how to find someone to do a home inspection that has “papers”, the next thing to do is: ask around. Let experience be the best teacher, to other people and use the information.

Second you have a subject matter expert showing up. Tcat has two words for you: be there. The efficiency of being able to get your questions answered in real time is exceeded only by the comfort of knowing now, what is what. Perhaps also the professional has some great advice.

Third, As we have said in the other articles, don’t get emotionally attached to the specific outcome of any certain house, trying to force fit it in your brain, I am not too a report about the house in question is really a recipe for disaster. If you are really stuck on this location and want it, badly, then at least use the reality that is their in a black-and-white report, that the condition of the house sucks. This will certainly improve your odds of getting a better price on the house leaving your room for repairs. Alternatively, you might be able to get a mortgage for a reduced price, leaving you a few kilo bucks to start the repairs with the highest priority.

As always, every situation is complex and somewhat unique. And yet over and over again we see many of the same mistakes. That would be emotion overriding sound judgment.

Moreover, do not get too “piggy”, creating a win/lose situation.

Loretta

September 27, 2009

3 People the First Time Home Buyer needs on their Team

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 9:07 pm
Heather Dunlop asked:


Many first time home buyers are not sure where to get started. They are ready to buy their first home and want to make sure they don’t make any mistakes.  So where do you go first?

 

There are three people that will be important to the first time home buyer.  These people can walk you through the process and help you purchase your first time. 

 

The first person you want on your team is a Realtor.  You want to make sure you find a Realtor who specializes in working with first time home buyers.  They will have the patience to answer all of your questions and reduce your fears.  They have been through the process many times and will be able to anticipate your questions and your needs, making the process easier on the first time home buyer.

 

Your Realtor can also help you find the other two people you need on your team.  Your Realtor will already have relationships with these other people, who are also familiar with working with first time home buyers.

 

The second person you want on your team is a Mortgage Broker.  Again, find a mortgage broker that works with first time home buyers.  This mortgage broker will know about the city, state, and federal programs available to help first time home buyers purchase their dream home.  They know what kind of loan you can qualify for, how much you will need for a down payment, and the lenders requirements.  Your mortgage broker will get your pre-approved so you know exactly how much house you can afford and don’t waste your time looking at houses you can’t buy.

 

The third person you want on your team is a Home Inspector.  As a first time home buyer you are not aware of what is involved in looking at the details of a home to make sure it is safe and will not require costly repairs.  Your Home Inspector will go over every nook and cranny and tell you what they find.  A good home inspection can save you from buying a home that needs major repairs without you knowing about the.  Be at the house with the Home Inspector so you can ask them questions about what they find, giving you a better understanding of the condition of the home.

 

Build your team with people who specialize in working with first time home buyers.  You’ll be glad you spent the time to find the right people to help you.



Beverly

April 27, 2009

Common Mistakes of First Time Home Buyers

Filed under: Home Security — Tags: , , , , , , , , , , , , , , — admin @ 9:16 pm
Stephanie Larkin asked:


Buying your first home is exciting. No more rental payments to a landlord making money for someone else. Instead, you are purchasing your own home and investing in yourself. Money paid to your home mortgage is really investing in your future. It is no wonder that first time home buyers are so excited, sometimes so excited that they make mistakes. There are a few common mistakes of first time home buyers, which with some knowledge and direction can be avoided.

First of all, it is always good to research the housing market and see what is out there. Yes, the very first house you look at may look like its perfect, but there are others out there for sale too. Be sure to at least look at a few before deciding on the one you want to buy.

Watch the cost of the home, do not be swayed into thinking that you can not barter down the cost of the house, you probably can.

Insist on a home inspection by a qualified inspector. There are plenty of people who will provide you with a home warranty when you buy their house and try to sway you from having the house inspected.

Having a home warranty is important and many first time home buyers just don’t know that they should or could get one when they are buying an older home. Home warranties are not a new product; they’ve been around for many years, but many people think that they are for new homes only, not realizing that they can be purchased for older homes as well.

A home warranty makes great sense when you are purchasing an older home – you just don’t know the house very well until you’ve lived in it. A home warranty protects first time home buyers from major expenses for repairs and replacements that could come up.

A first time home buyer can make a major mistake if he or she does not understand that if something goes wrong, they are fully responsible to fix it. There is no landlord to call and the costs are all theirs to bear. This is one of the major reasons it is so important to invest in a home warranty when you purchase an older home. If any major repairs need to happen, most often the home warranty will cover the costs, making owning a home much more feasible.

When looking for a home warranty, it’s important to have a basic understanding of what you are looking for. When you talk to an agent, there are many questions that you need to ask to be sure you know what level of warranty you are getting. Questions to ask include:

What is covered with the home warranty? Most often the electrical system, plumbing system, heating system, cooling system/air conditioning, and major appliances that are covered under the warranty.

What is excluded from coverage with the home warranty? Most often this includes outdoor water, including the sprinkler system, faucet repairs, hot tubs, pools, spas and costs of hauling away debris and old appliances.

What are the rates/premiums? How much will you have to pay for the home warranty?

What is the deductible on the home warranty? The deductible is how much you will have to pay when you make a claim. Most often the deductible is $50, this amount will be deducted from the overall cost of the reparations paid by the warranty company.

How long is the warranty active for? Most often home warranties are offered in one year terms.

Is the warranty renewable at the end of the term? If you’ve purchased it yourself as the buyer, it is likely renewable. However, if the seller purchased the home warranty, it will not be renewable.

What are the terms of the warranty? When will the warranty be void? Most often if you’ve misused the item, or if it is not up to code or not installed properly, your warranty will be void and will not cover any reparations.

How are claims handled?

How do I make a claim?

With the above information, first time home buyers can avoid some of the serious mistakes that are usually made, and then go through with their home purchase knowledgeable and safe from the fall out of a potentially serious mistake. Mistakes such as the ones listed above can land a first time home owner in serious debt paying for repairs they were not prepared for financially. Owning a home of your own is very exciting, especially a first home, but make sure you go into it with your eyes open, your finances secure and a plan for the future should a problem rise with one of the major components of the home.



Howard

Powered by WordPress
airline coupons