Home Buyer Reports

Getting Out Of The Renting Cycle

Renting doesn’t have to be your only option. Many people have no problem making the monthly payment, as they do it every month, but the down payment for a house seems impossible. It’s not as daunting as you may think. Here are some things to consider:

You don’t need a huge down payment.

There are government programs available to help you with buying your first home. As long as your name has never been on a home loan, you may qualify, and should not hesitate to ask your agent or lender if one of these programs might be right for you.

Ask a lender for help.

If you own an asset such as a car, you may be able to lend you a down payment against this asset. This is possible if you don’t have enough cash for a down payment and don’t have any debt.

Ask a seller for help.

Sometimes a seller may do a “seller take-back,” where they hold a second mortgage for you, and you pay monthly mortgage installments to them. They essentially become your lender.

Borrow it.

If you borrow money for certain investments to a specific level, you could potentially create a significant tax refund useable as a down payment. Though the money borrowed for these investments is technically loaned to you, you can make small monthly payments, with the money invested in both the home and investment becoming yours to keep.

Get pre-approved.

Pre-approval is an easy way to get a ballpark estimate of what you can afford. It costs you nothing to get pre-approved, and is the best resource you will have in determining how much you would be able to pay for you new home. Many realtors now require that a potential buyer be pre-approved before writing an offer, so it would behoove you to get this piece of insurance before you start looking.

Buy, even with shaky credit.

You can own a home, even if your credit is less than perfect. Working with a lender can help you secure a loan that meets your needs and fits your budget. If you can make your payments, there is usually a loan program out there to help you. There are many issues to consider when renting. The first is the most obvious – why throw thousands of dollars into a space that isn’t yours, when you could be on the way to buying your own home? While many people think that a place of their own is out of reach, a few minutes speaking with a realtor or lender can change any preconceived notions you may have of the buying process, and could put you into a great home that fitsyour budget.

Avoiding Homebuying Traps

The homebuying process can be difficult to navigate, and missteps can cost you money – or your dream home. There are easy steps you can take now to insure that you make a sound investment with the best possible result – getting into the home that’s right for you.

Research before bidding.

Make sure your realtor does extensive research on the market before making an offer on a home. By looking at past sales and current market activity, your realtor can help you make an offer that is just right, insuring that you won’t lose money or bid too low.

Don’t get overwhelmed.

The buying process can be emotional, but it is important not to forget your homebuying goals. By staying levelheaded and taking notes, you cant remember the pros and cons of each property that you look at and compare them in a neutral setting with your realtor, where you’ll be more

apt to make objective decisions.

Look at the property’s history.

While most sellers are honest, there are still dangers that the buyer must consider in terms of the property title. Doing a title search can save you the headache of dealing with liens, easements, and other situations that would be brought up by researching the title.

Hire an inspector.

In an ideal world, sellers would disclose everything that is wrong with their property. Deliberately and unintentionally alike, there are often issues that are overlooked. Hiring a professional home inspector assures that you won’t be left making costly repairs after the home

has been signed over to you.

Take a survey.

There are many reasons why a home’s property lines may become fuzzy over time, ranging from inaccurate maps to neighbors who encroach on a property, often unknowingly. A survey gives you a more definitive idea of where your property lines are marked, giving you security should

you decide to add a garage, a pool, or even a fence.

Talk to a lender.

A lender is a fundamental part of the homebuying process. Not only can a lender provide you with the necessary pre-approval letters for putting an offer on a home, they can also apprise you of any hidden costs and fees that you may incur during the contract process. Knowing these in

advance can save you from “shell-shock” during the closing of writing a check you were not expecting.

Read the fine print.

Every contract has an agreed-upon time for things like financial approval and repairs. It is imperative that you and your realtor keep up-to-speed with these dates, as they can void a contract and cost you money. In addition, it is important to look over the contract anytime there is a counter-offer or addendum. Another point at which to read the fine print is during the

Six Considerations for Buyers

Within the last few years, options have increase for buyers in terms of mortgage regulations. These changes can affect you positively or negatively, and have the potential to add up to thousands of dollars gained or lost as a result. For first-time and veteran homebuyers alike, it is important to consider six factors when working with a lender:

Use an expert.

There are lenders who specialize in residential mortgages. Their knowledge can save you money and time in the end by avoiding delays and maximizing the benefits of programs that fit your needs.

Know your expense comfort zone.

Consider how much you would like to pay per month for a new home. Pre-approval tells you what you qualify for, but that does not always equal the amount per month you would be comfortable with. By establishing your preferred monthly payment, your lender can work with different types of mortgages and programs that fit your needs and budget. It will also save you from looking at homes that are not in your price range, instead focusing in on homes that you would comfortably afford.

Get pre-approved before you look.

before writing an offer, so it would behoove you to get this piece of insurance before you start looking.

Look at your options for pre-payment.

If you are able to swing higher payments, or are able to make more frequent payments, you may be able to cut years’ worth of payments off your mortgage, saving yourself thousands in interest. While this is not always a viable option, it is something to talk to your lender about.

Ask about mortgage flexibility options.

Some mortgages can go with you when you move, allowing you to avoid the entire lending process again and saving you the cost of penalties. These are called portable mortgages. There are also assumable mortgages, which allow the buyer of your home to take over the payments when you move, saving both you and the buyer the headache of penalties and fees.