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.
|
|
|
Buying A Home ? Rain, Sun, And Weather Issues
When buying a home, it can be easy to overlook year-around weather issues. You may think you are purchasing a home in a sunny area, but come to find there is always a heavy cloud cover. This is ...(related: Real Estate)
Moving On: Powerful Tips For Selling Your Home
Maybe you're moving to a larger home to accommodate a growing family, relocating for a new career opportunity, or purchasing a townhouse for retirement. Whatever the reason for the move, you'll need to take the necessary steps to sell your home for the best possible price, within a reasonable amount of time. Where do you begin?If you're like most people, you'll start by seeking assistance from a professional. A local real estate sales associate, who knows your neighborho...(related: Real Estate)
Hiring A Contractor - 10 Mistakes To Avoid
A very smart attorney I know paid $7,000 for a roof repair, only to have the roof leak the next time it rained. The contractor stalled, made excuses, but never did a thing about it. Anyone can have these kinds of problems when having repairs or improvements done, but to make it less likely, avoid the folowing mistakes when hiring a contractor.1. Not knowing what you want. If you don't know what you want, you might not like what you get. Also, if you change your mind and change the job halfway through, the contract - ...(related: Real Estate)
Making Money In Real Estate - 10 Ways
Making money in real estate is an endless topic that includes all the various types of real estate investments. There is land, apartment buildings, homes, commercial buildings and more. Whatever the type however, you'll make your profits in some of the basic ways listed below. Use this list to get yourself thinking of the possibilities.1. Appreciation. Making money in real estate can be as...(related: Real Estate)
Escrow From A California Homeowners Perspective
The Escrow ProcessBoth Buyer and Seller deserve the assurance that no funds or property will change hands until all of the instructions in the Purchase Contract have been satisfied. The Realtor submits Buyers and Sellers signed documents and Buyer's deposit money to be held by an independent neutral third party (Escrow). After the conditions agreed upon by both Buyer and Seller (in the Purchase Contract) are satisfied, Escrow then distributes the documents and the funds.The escrow holder is an independent neutral third party; works for both the Buyer and the Seller, and is authorized to follow the specific written instructions provided by both parties. Escrow functions:Receives and deposits (into escrow's account) Buyer's initial depo...(related: Real Estate)
Getting Started In Real Estate Foreclosure Investing
Decide to Invest in Real Estate Foreclosure InvestingWith the increase in Real Estate property appreciation rates across America, a prospective foreclosure buyer may want to fix up a property to improve its value to live...(related: Real Estate)
10 Tips To Sell Your House Faster!
Here are some Handy wee Tips to help you Sell Your House Faster. These are all 'tried and true' tips we've gathered over years of Buying and Selling Houses, so I know for sure that they work!1. Clean your house -- no kidding...the cleaner your house is, the easier it is to sell.2. Fix any glaring problems. You know -- doors hanging off, blowing in the wind... that sort of big thing!3. Advertise yourself, even if you have a Realtor. It's not a given that your Realtor will actually advertise for you. It's an option that they can add in addition to putting you on MLS (Multiple Listing Service...). If you place your own Ad, include the Price, size, and any special features. There's nothing more annoying to us than a House without a Price -- it's much bett...(related: Real Estate)
Should You Allow Buyer To Rent During Closing?
It's not uncommon for an investor to sell a house and have the buyer request the right to rent and occupy the property while the closing is being completed.You're a bad guy if you refuse and often in hot water of you agree. ...(related: Real Estate)
Negative Gearing ? It?s Not To Your Benefit!
The concept of negative gearing has been originally developed to encourage real estate investment in Australia by allowing any income losses from property investment to be deductible from other income as a tax benefit. This means that the taxable income of the owner will be reduced after the deduction and therefore the total tax payable is also reduced.In view of the fact that many of the profits from property investments are usually obtained as a capital gains at the time when the property is sold, but do not generate positive cash flow from rentals during the course of the holding period, negative gearing therefore came in to address this issue.You lose either wayHowever, the flaw with negative gearing lies in its concept as well. If an inve...(related: Real Estate)
Buying A Home ? Dealing With Lender Letters
Most people who set out to buy a home, be it house, townhouse, condo, apartment, or mansion on a hill, know they need to have a lender letter in hand saying they are qualified for a loan. What most "civilians" (people not in the real estate business) don't realize is how much the value of a lender letter varies.Let's look at some of the general ways a lender letter varies, which sort you want, and how to present it to a seller to put you in the best possible position to buy that seller's property. If you're working with a broker, he or she will coach you in these matters. If you're shop...(related: Real Estate)
Condo Hotel Trends - A Look At The Big Picture In Vacation Home Ownership
Condo hotels are one of the hottest products in today's real estate market. New properties are cropping up in different parts of the country and new buyers are entering the market daily. Things have been moving so quickly in terms of condo hotels, but sometimes it's worth taking a moment to step back and look at the big picture.Condo Hotels In General: There is a spreading enthusiasm ab...(related: Real Estate)
What Is Tax-deferred Exchange?
Under Section 1031 of the Internal Revenue Code, owners of real estate held for investment or use in a trade or business can swap their property tax-free for "like-kind" real estate.Exchanges are made for people wanting to stay invested in real estate, increase their leverage and to avoid paying hefty taxes upon the sale of property.Like Kind- Apartments- Rental Houses- Retail Properties- Commercial- Raw Land- Office Buildings- Industrial- RanchesNon Qualifying Properties- Personal Residences- Dealer Property- Partnership Interests- InventoryReason to Exchanges- Restoring Depreciation that will soon expire - by exchanging one property for anotherof greater value.- To upgrade size and/or quality of investment. An e...(related: Real Estate)
site-map - Copyright © 2006 real-estate.myinfohut.info | Contact Webmaster | All Rights Reserved. | Real Estate