Here are my top 10 important
aspects of the buying process:
1. Unless if you are an
Investor, Don't buy if you can't stay put. If you can't commit to remaining
in one place for at least a few years, then owning is probably not for
you, at least not yet. With the transaction costs of buying and selling
a home, you may end up losing money if you sell any sooner - even in a
rising market. When prices are falling, it's an even worse proposition.
Most buyers think they can get a steal with the current market. Even though
80% of the market is still bank owned or distressed sales, banks have done
their homework, and most of the homes are priced well and comparable to
recent homes sales. A good deal can be to good to be true. You must get
a home inspection to make sure the home is lendable, and in fair condition
comparing to the current sales price.
2. Start by being familiar
with your credit file. Since you most likely will need to get a mortgage
to buy a house, you must make sure your credit history is as clean as possible.
A few months before you start house hunting, get copies of your credit
report. Make sure the facts are correct, and fix any problems you discover.
I have experience in credit repair. Lets review your credit with a successful
Mortgage Broker. Every bank is different and has different programs and
3. Aim for a home you
can really afford. The rule of thumb is that you can buy housing that
runs about two-and-one-half times your annual salary. But you'll do better
to use one of many calculators available online to get a better handle
on how your income, debts, and expenses affect what you can afford. A good
lender can qualify you first by what payment you are comfortable with.
Lets make this plan by knowing your price range first.
4. If you can't put down
the usual 20 percent, you may still qualify for a loan.There are a
variety of public and private lenders who, if you qualify, offer low-interest
mortgages that require a small down payment. There are also options to
negotiate your closing costs into your mortgage or having the seller contribute.
I will negotiate on your behalf and get you the very best deal.
5. Buy in a district with
good schools. In most areas, this advice applies even if you don't
have school-age children. Reason: When it comes time to sell, you'll learn
that strong school districts are a top priority for many home buyers, thus
helping to boost property values. Areas that still have room for growth
are also great areas to invest. I know those areas, just ask!
6. Get professional help.
Even though the Internet gives buyers unprecedented access to home listings,
most new buyers (and many more experienced ones) are better off using a
professional agent. Look for an exclusive buyer agent, if possible, who
will have your interests at heart and can help you with strategies during
the bidding process. Work with one Realtor, they all have the same inventory
7. Choose carefully between
points and rate. When picking a mortgage, you usually have the option
of paying additional points -- a portion of the interest that you pay at
closing -- in exchange for a lower interest rate. If you stay in the house
for a long time -- say three to five years or more -- it's usually a better
deal to take the points. The lower interest rate will save you more in
the long run.
8. Before house hunting,
get pre-approved. Getting pre-approved will you save yourself the grief
of looking at houses you can't afford and put you in a better position
to make a serious offer when you do find the right house. Not to be confused
with pre-qualification, which is based on a cursory review of your finances,
pre-approval from a lender is based on your actual income, debt and by
9. Have your agent do
homework before submitting an offer.Your opening offer should be based
on the sales trend of similar homes in the neighborhood. So before making
it, consider sales of similar homes in the last three months. If homes
have recently sold at 5 percent less than the asking price, you should
make a bid that's about eight to 10 percent lower than what the seller
10. Hire a home inspector.
Sure, your lender will require a home appraisal anyway. But that's just
the bank's way of determining whether the house is worth the price you've
agreed to pay. Separately, you should hire your own home inspector, preferably
an engineer with experience in doing home surveys in the area where you
are buying. His or her job will be to point out potential problems that
could require costly repairs down the road.
Any questions about buying
or investing in Brevard County real estate please allow me to assist you.