Posts Tagged ‘Home Buying Process’

In this segment from Mark “First-Time” Boyer’s interview with Carol Dorsey of Prudential SourceOne Realty, Carol talks about the home-buying process, touching on home tours, inspections, offers, counter-offers, and attorney reviews.

This mini video series brought to you by www.bestmortgagerates4u.ca shows the process of buying a home. Thinking of Buying a Home? Step 7 : What professionals are needed in the home buying process? Stay tuned for the other steps. This step by step advice was compiled by a seasoned mortgage…

By Mike Manosky

Getting a good deal on a home is often more about timing than purchase price. Because most homes are financed through at least a 15-year mortgage (usually 20- or 30-year), the amount paid in interest has an enormous impact on what the home will ultimately cost. The contract price may be $150,000. By the time interest is calculated over 30 years, however, you could easily pay twice or even three times that amount, depending on what the interest rate is on the day you lock into a mortgage rate.

Lower interest rates make it possible to finance the same amount of money for a lower payment, or finance more money without increasing the payment. How so? Let’s look at financing $150,000 for 30 years at 6.50%.

Your approximate principal and interest payment would be about $948 monthly. Another option would be to finance $158,000 with a monthly payment of roughly $947. This option would allow you to borrow an additional $8,000 without hardly changing the payment. If the interest rate dropped to 6.00%, however, the payment would decrease to approximately $899 per month. Whether you’re looking to buy your first home, or thinking about upgrading to a bigger one, lower rates open the opportunity to find a great buy. The other vital element is location. The award-winning city of Huntsville, Alabama has much to offer.

The Value of Huntsville

No one wants to buy a home that won’t resell well. So, where do you look to ensure you get value? In a June 30, 2007 survey, the Office of Federal Housing Enterprise Oversight (OFHEO) reports, “Of 287 metro areas, 131 recorded decreases in house prices during the quarter.” The Huntsville real estate market, however, was ranked 36 out of 287 in price appreciation, and came in above average with a second quarter increase of 1.76%. Plainly stated, while houses in many areas are losing value, Huntsville, Alabama is still an affordable and wise housing choice.

What Does Huntsville Have To Offer?

Huntsville is widely recognized as being one of the country’s best places to work, live and go to school. The September 2007 issue of U.S. News & World Report says, “The University of Alabama in Huntsville ranks among the top ten percent of business schools in the county.” Check with MSN/Sperling’s Best Places and you will find that Huntsville is named one of the country’s top ten cities for job growth and affordability. So, what makes this southern town such a remarkable place to live? Huntsville offers a thriving job market, lower than average cost of living, plenty of options for entertainment and a climate that enjoys the best of all four seasons.

If you’re considering buying a home, now may be a good time to do so if you’re looking in the Huntsville real estate market. And with all it has to offer, Huntsville could easily be just what you’ve been waiting for.

Mortgage lenders are a necessary part of buying a home for most people. No matter what your credit score or how much money you have saved, the right mortgage lender can make the home buying process a lot easier for you. The perfect mortgage lender is out there, you just need to know how to find that company. Once you have chosen a mortgage lender, your can use the following tips when working together to make everything go as smoothly as possible:

Tip #1: Make sure you understand the terms of your mortgage agreement.

A mortgage agreement is more than an interest rate. Foreclosure has become a huge problem in recent years in part because people do not always read the documents they sign. It might be a lot of paperwork, but you should know exactly the terms to which you’re agreeing. What happens if you’re late on a payment? When is the money due every month? Are there balloon payments in your future? What rights does the mortgage lender have to call in the remaining debt? What rights do you have in a foreclosure situation? How much can your interest rate change over time? What will you be paying in closing costs? If you do not know the answers to all of these questions, you have not read your mortgage paperwork closely enough. As a new home buyer, it is your responsibility to ensure that your bases are covered.

Tip #2: Pay for points if you can.

Most lenders offer “points” as part of your closing costs, and you have the option to pay for these or not. Paying for points is only a good idea if you can pay for them without overstretch yourself, and if you already have enough money for the down payment and other closing costs. Points are a way to get a lower interest rate by giving some money upfront, and they are not available for everyone. To a certain degree, paying for points does not make sense because you will pay more for the point than you will save in the interest. Your mortgage lender should help you determine the maximum amount you should pay in points. If you do not understand the process, make sure you ask questions until you do.

Tip #3: Don’t be afraid to ask your mortgage lender questions.

Many people do not ask their mortgage lender many questions because they are afraid that their rates will go up or that they will be denied a mortgage altogether. That should not be the case. Yes, a mortgage lender has the choice to work with you or not, but you are essentially “hiring” someone to work for you. The right mortgage lender should welcome any and all questions you may have, even after the paperwork has been signed. Before working with a mortgage lender, make sure you understand your mortgage completely, and during the time when you are repaying your mortgage, do not be afraid to call your mortgage lender if you have questions about anything. You have the right to have all of your questions answered, and if one mortgage lender seems annoyed to answer, consider working with someone else.

Tip #4: Be considerate of your mortgage lender’s time.

Your representative from your mortgage company puts a lot of work into figuring out your rate and drawing up the right documents. It is important to be considerate of his or her time. If your plans change part way through the process or your have a hard time making a payment as you are repaying the mortgage, call your mortgage lender to discuss the situation. Also, even though you should feel free to ask questions (see the tip above), before you go into a house-buying situation, make sure you understand a little about how mortgages work so that you don’t waste time trying to learn about the most basic concepts.

Tip #5: Fix your credit before approaching a mortgage lender.

If you want to avoid issues with getting approved, make sure that you have your ducks lined up before you even start looking for a mortgage lender. Credit scores aren’t easy to fix, but it can be done. Start by paying off any late debts you may have, and then pay off other bills, starting with your credit cards. You can also contact the credit reporting agencies if you see mistakes that could be damaging your score, and it could help to close some of your credit cards so that you don’t have as high of a debt potential. Wait a few months for the changes you’ve made to take effect on your report, and while you’re doing that, save up to that you have even more money for a down payment and closing costs.

PaulDaSilvaHomesTV.com Making Home Buying Easier and Less Stressful. There are a number of costs to consider, on top of the purchase price, that figure into your calculations of affordability. This is true whether you are buying your first home or trading up to a larger one. Not all will apply in your situation, however it is better to know about them so you can budget appropriately. The REALTOR who gave you this video can give you more detailed information FREE and without obligation. Arming yourself with the right information will make the home buying process easier and will help you make the right decisions for your and your family. http

Selling a house is no different to selling any other regular product. The only difference is that selling a home entails more marketing strategies compared to normal goods which can be bought at whim. Certainly, purchasing a home is one of the single most important decisions a person can make in his lifetime. And thus, when a buyer decides which home suits himself and his family best, this is expected to be a very long process. If a person can be picky when it comes to buying ordinary products, then much more so if he is choosing a home to stay in. This is where home staging enters the picture.

Basically, home staging is the practice of preparing a home for sale before it is made available on the housing market. This process is necessary and utterly important because it helps sellers advertise their houses better and it hastens the decision of buyers to consider the house. 

Home staging is all about creating an illusion. If you want to sell your house, you must make it look attractive and desirable. You should appeal to the desires of buyers. What does this mean? It means that you should exhaust all means by which your house will look better compared to all the others out in the market. Surely, competition is one thing you have to be prepared for.

In order to stage a home, you could use the expertise of a professional stager, whose services can cost you anywhere from $500 to $5000. You could also search online tips and do the staging yourself. Of course, you should start with surveying your house. Look for possible fixes. Detect everything that might need repairs. See to it that the interior and exterior parts of the house look attractive enough and are free of clutter.

Speaking of clutter, the other important thing to do next is clean. A dirty house will surely turn off a buyer. Make sure that all nooks and crannies of the house do not have visible dust and that they are free of mites and cockroaches. Put away your children’s scattered toys and make sure that your pets do not leave any visible stains on carpets and floors.

There are other things you can do to stage your home. You should remember that, if you want the house to get sold much quicker, you have to do all of these procedures. Nobody is going to take a second look at your house if it is dirty and not too appealing. And the only way to avoid this is by having the house ready for viewing through staging.  

You plan to have your house to undergo home inspection; you will surely discover certain issues that might need immediately attention.  You want to identify if you will need the plumber or electrician to repair the damages.  Your ceiling, chimneys, roofs and other parts should also be checked to prevent from encountering problems later on.  Basically, you want your house to be inspected to know the actual condition of the property and a lot more reasons that you can possibly think.

Home inspection procedure will allow you to evaluate if you are indeed paying for the right house.  If the home inspector starts to check various areas in the house, looks that there are a lot of damages, you can ask for some considerations on the price.  You really don’t have to shell out a huge sum of money at the start of the buying process.  On the other hand, if he looks at it that there are only a couple of damages, and then you can be assured that you have made the right decision.  You will not have to worry if it is durable enough to last up for decades.

After you have purchased the property, it is also beneficial if you have it inspected so you can see those things that need immediate repairs.  Based on the form given to you by the inspector, you can see which one needs more attention and have it repaired as soon as possible.  These repairs will not have to be done all at ounce.  You can do it one at a time depending on which will fit within your budget. 

A home inspection after closing the transaction will allow you to realize that you are not putting more value to the house without going through appropriate documentation.  It will simply show that you took your own initiative to fix and improve the house.  When you sell the property, you can ask for a higher price compared to the original amount that you have paid before.  Possible home buyers can feel secured in acquiring your house if this is the case.

Allowing your house to undergo home inspection, before or after the transaction, is a wise move.  It is some sort of a protection from possible problems that will come in your way which can be more costly if discovered later on.  It can help you evaluate if the house that you wish to buy is indeed a worthwhile investment to make.  It can also be a form of formality on your part to place everything you have made on the house into appropriate documentation.  In this way, you can inform the public about the current status of the house.

For security purposes, gather all the necessary documents given by the home inspector.  You can use them in the future.  You will see the essence of home inspection process as soon as you have started to stay in the house.  Hence, do not miss the chance to have your house inspected by a reliable home inspector.

start to end of home buying process

www.CheaperThanForeclosures.com Buying a home can seem like a difficult process, and this video simplifies it. This video is about the steps involved in buying a home effectively.

www.tonyzito.com If you want to buy a Baton Rouge Home you will find everything you need search MLS. Latest Baton Rouge Real Estate Video Blog shows where to start in the home buying process

Here are the 15 steps that need to be taken to purchase a home:

1. The Initial Interview

Determine what you need and want in your new home

Discuss the parameters of your search

Discuss financing

2. Get Pre-Qualified By a Lender

Obtain a pre-qualification letter

3. Property Tours

View available properties that match your needs and emotions

Listen to you carefully to find out what features you need in your ideal home

Provide you with information about the current market and what it means to you

4. Find the Home That Matches Your Needs and Write The Offer

Writing the offer will take between 1-3 hours

Complete the purchase agreement contract

Deliver the earnest money deposit(this will be held until and accepted contact is created)

5. Present the Offer

Prepare a presentation by highlighting the strengths of your offer and your strengths as a buyer

Present the offer to the seller and the sellers’ real estate professional

The sellers will either accept, counter or reject the offer

6. Counter-Offer

Discuss the counter offer and how it relates to your goals, and prepare a response

7. Escrow

When the offer is accepted and has been signed by all parties, the escrow will be opened

Your earnest money deposit will be deposited

The Escrow Officer will order a Preliminary Title Report and send copies to the lender and I

8. Loan Application

Submit a complete loan application and all the necessary loan documents to your chosen lender

9. The Contingency Period

Your approval of the sellers Disclosures

Your approval of the Preliminary Title Report

Physical inspections and pest inspections

Property appraisal and loan approval

10. Homeowners Insurance Coverage

Select an insurance company and discuss coverage

Give the insurance agent the escrow information(they will need to order a copy of the policy for the new lender prior to escrow closing)

11. Signing Documents at the Title Company

The lender will send the loan documents directly to the title company

You will receive copies of the title and lender documents

You will need a current photo ID

12. Down Payment and Closing Fund

Bring a cashiers check to the title company(depending on circumstances) several days prior to closing

The Escrow Officer will prepare a Buyers’ estimated closing statement, which will itemize costs and credits, and estimate the total money due

13. Funding

The lender will wire the funds to the title company

14. Close Of Escrow

The deed will be recorded at the county recorder’s office by the title company(you will receive the original back from the county in approximately six weeks)

I will coordinate the transfer of the house keys

15. It’s Time to Move In!

As thrilling as it is to go looking for a new home, it\’s even more exciting to finally close on the house that is right for you. When bearing in mind the costs of buying a home, a typical rule of thumb is to prepare to pay at least 10 percent of the house\’s selling price needed for a down payment and closing costs. Your monthly bills, which encompass the mortgage payment, should be below 40 percent of your gross monthly wages, and your employment or savings should be sound enough to maintain payments efficiently. You can then select who will help you with the buying process.

After choosing which realtor, or attorney is good for you, check your credit report, in order to prepare for your mortgage loan application. Take the required steps for any corrections or disputes, and make copies of all correspondence. For your loan application, in addition to the particulars of any outstanding debts and related disputes, you will also want copies of the following: photo ID or green card, social security card, residence history, employer contact information, bank account contact information, one month of pay stubs, W2 forms, information regarding any assets, and retirement, social security, child support, and divorce decree papers if relevant. If you own part or all of a business, you will want to supply documents pertaining to such, and in the case you are self-employed, you will need to present tax returns. If you have already found a house you are interested in, you will have to include information on it, as well as any documents or agreements that have been written up between you and the selling party, and information regarding the sale of your current home, if applicable.

Within three days of submitting your loan application, you will typically receive a booklet outlining the payment or closing process, in addition to a good faith estimate. The good faith estimate will provide you with a general idea of what all of your home loan costs will be. Remember that it is called an estimate since costs are subject to change depending on conditions, and some fees and requirements may differ from state to state. The loan process involves a few sub-costs, such as for the underwriting, brokering, home appraisal, credit report, and discount (or points) of lower interest rates. Another main cost is for researching the existing title, which will guard you from any potential issues. Other typical costs may be for assumption, which is if you are taking over an existing mortgage; notary and attorney services; survey of the property; and inspections such as for plumbing, codes, roofing, lead paint, and pests. Don\’t forget that fees may acquire for the preparation of all documents, particularly recording fees for city and state government agencies, as well as the transference of all relevant documents such as the title insurance and an owner\’s policy, or expanded homeowner\’s policy.

All loan documents have been prepared, money is in escrow, and any needed repairs have been finished. Once you have done a final check on the property and read through and agreed with the HUD 1 Settlement Statement (which details all cost incurred by you and the seller), you\’re finished! You should be given a truth in lending report, which outlines all details of your loan, the mortgage papers, the deed, all additional related documents or affidavits, and at long last, the keys!

Mark Mitchell Virtual Properties Realty www.markmitchellhomes.com 404-353-0185 This video is for first time home buyers and for people who want to know more about the buying process. It covers the basic steps from the beginning stages all the way through the closing. It gives you a place to go for your home buying process brochure that you can print for your reading. The video lets a buyer know what to expect from a buying transaction. I service Northeast Atlanta including Alpharetta, Roswell, Suwanee, Duluth, Cumming, Woodstock, Sandy Springs, Buford, Lawrenceville, Dacula

Choosing a Mortgage Company

You will potentially be dealing with your mortgage company for the next thirty years, therefore; it is important to choose your mortgage company wisely. The best way to choose a mortgage company is to ask those around you for their experiences. Talk to friends or relatives who have recently purchased a home and ask if they were happy with the service from their mortgage company. By doing this you can begin to build a list of companies that you want to approach.

Real estate agents can also be a good source for mortgage company recommendations. Because they see people working through the financing process daily, they develop a feel for which companies are easy to deal with, and which are not as easy. Although word of mouth is an excellent way to develop a list of potential mortgage companies, it should not be your only method used. Everyone has a different financial situation, and what works for one person may not be the best choice for someone else.

Using the list of mortgage brokers that you have compiled, you can make appointments to go in and personally speak with each one. This will give you a feel for the personality and demeanor of each company. Also, if you have trouble getting your calls returned, or setting up appointments as a prospective customer, it is unlikely that your situation would improve if you had your mortgage through the company.

What to Expect from the Mortgage Company

A mortgage company is a service industry. It is important to remember this. Many people find the mortgage approval and home buying process so intimidating that they forget that they should shop for a mortgage company that they are happy with. A mortgage company should be happy to quote you specific interest rates, and let you know when you should lock in these rates. They should also tell you what the specific costs are in acquiring a loan. This means a good faith estimate on closing costs, discount and origination fees that must be paid and any other costs that may be involved when purchasing a home.

The mortgage company should be upfront about all of the technical details of the loan. They should let you know if there is any penalty for pre-payment, the amount of money required for a down payment, and what documents you will need to provide for loan approval. The mortgage company should also let you know what guidelines you must meet to qualify for a loan with them. This will include credit history, your income, employment history, your assets and liabilities and any other specifications they require.

Many states offer specialized home buying programs. The well established home mortgage company should be familiar with the various programs in your state, and provide you with information about these. If you believe that you may qualify for one of these programs, the mortgage company should help you complete any necessary paperwork and determine if you qualify.

The mortgage company should be willing to tell you how long it will take to process the loan, and if they guarantee it will be processed by a certain date. They should also provide you with any information that may slow down the loan processing process, and their method for dealing with problems.

After the Loan Closes

Once you close on your mortgage, you may never see or think of your mortgage company again. You make your monthly payment, and sometime, years down the road, you receive the title to your home. While this happens occasionally, it is not as common as you may think. You may move, and decide to sell your home. Interest rates may drop, making the decision to refinance attractive, or, you may have trouble making your monthly payment due to job loss or medical problems.

Before selling your home, you must know how much you owe on it. Your mortgage broker should be able to determine the balance of the loan and provide you with this information easily. If you decide to refinance, consider staying with the same mortgage company. Often, the mortgage company will negotiate lower closing fees or no closing costs if you refinance through the same company that currently holds your mortgage.

Finally, if catastrophe strikes and you are unable to make your mortgage payment, it is imperative that you get your mortgage company involved early in the process. They can provide you with resources for help in making or delaying payments, and let you know if foreclosure is imminent. As tempting as it is to bury your head in the sand at this time, remaining proactive can help you hand on to your home, or allow you to sell your home before foreclosure proceeding begin.

When you decide to sell or buy a property, you will surely have to under go a tedious process.  You need to secure that it is a worthwhile investment that you are doing.  Thus, procedures such as home inspections are conducted to secure buyers and sellers about the actual condition of the house.  However, most of them do not see the essence of this process.  They only think that this is an added expense.  If you are really a wise consumer, you certainly want to be assured of the investment that you are making.  And one way of doing this is by going through a home inspection process.

Usually, to make home inspections reliable, they are done by certified home inspectors.  There are specific learnings that they observe in performing the entire proceeding.  But these steps all boil down to one goal that is to determine the actual condition of the house.  At the end of the proceedings, they come up with a report showing all the good and bad features of the property which is, of course, done by the inspector.  This is where you can actually verify if the house is worthy of your money or not.

When you are still on the road to finalize your decision, home inspection process can justify all your doubts about the house.  One concrete example of this is the actual value of the property.  You can verify the amount if had it inspected before paying for it.  Aside from that, you can in fact discover the existing damages of the house which you might have overlooked before you purchased it.  Issues such as these must be identified before you close the deal.

The areas that necessarily need extensive inspection are the whole structure of the property, amenities, the electrical and plumbing systems, and the water supply.  You have to determine the actual condition of these areas.  By knowing their performance, you can already determine the longevity of the property as well as the possible living condition you will have.  Hence, home inspection results can greatly influence the decision of every home buyer.

The built-in facilities in the house such as walls, kitchen, bedroom, bathroom and the like must also undergo the process.  This is very essential when you are going to cook, arrange your personal belongings and even when you clean the house.  If they are still at their best performance, everything will be easy for you in your home.  Aside from that, the electrical and plumbing systems must also be in good condition since they are the most utilized supplies.  You do not want to end up spending another expense for a generator or water tank right? 

Make sure that you do not have shortage with water and electricity.  They are the most important commodities and thus always secure the supply of these things.  There are so many factors that must be considered in home inspection process.  These are just some of the few to mention.  Although they cost a bit but the peace of mind that you can achieve as soon as you live in your house is irreplaceable of any amount.  Just be sure to hire a certified home inspector to get the best results.

Do not be confused between home appraisal and home inspection.  There is a big difference between the two; appraisals are concerned with the value of the property.  On the other hand, inspections focus more on the actual state of the house.