Buyer's Tips



Before you start looking for a home you should ask yourself a few questions: Where do you want to live? Do you want to be close to schools or work? What kind of house would you like (need) ? Are you looking for a particular style? How many bedrooms and bathrooms do you want? Do you want a yard? How much house can you afford? Have you consulted a mortgage lender to determine the size of the mortgage you would qualify for? Here are a few tips to help you get organized: Pull a credit report on yourself and make sure the information is accurate. If you find any errors take steps to correct them immediately. Browse through real estate advertisements in the newspaper and Homes Magazine. This will give you a good feel for the types of homes that are on the market and what they cost. Visit open houses on the weekend. It doesn't cost anything to look, and looking at a few different homes might give you ideas for things you'd like in a house but haven't considered. Start saving money - you'll need to have cash on hand for a down payment and closing costs.


What is the difference between prequalified and preapproved? A pre-qualification consists of a discussion between a home buyer and loan officer. The loan officer collects basic information regarding the customer's income, monthly debts, credit history and assets, and then uses this information to calculate an estimated mortgage amount for the home buyer. The prequalification is not a full mortgage approval, but estimates what a home buyer can afford. A preapproval, on the other hand, is a comprehensive approach using basic information as well as electronic credit reporting. Preapproval in most cases are true mortgage commitments. The lender commits to financing your house and indicates the total mortgage. What types of mortgage programs are offered? Currently, there are over 50 different mortgage products available, including, but not limited to: 15, 20 and 30 year fixed rate loans Adjustable rate loans New construction financing VA and FHA loans 5 and 7 year balloon loans How long does it take to process a mortgage application? Usually about 30 to 60 days, although it can take as few as a seven days and as long as 90 days for some transactions. The actual time depends on how quickly the lender can get an appraisal of the property, a credit report and verification on employment and bank details. What documents will I have to provide? Be prepared to provide a verification of income (including a pay stub and recent tax returns), bank account numbers and details on all long term debt (credit cards, auto loans, child support, etc.). If you're self employed you may also be required to provide financial statements for your business. Could anything delay the approval of my loan? If you provide the lender with complete, accurate, information everything should go smoothly. You may face a delay if the lender discovers credit problems, a history of late payments or nonpayment of debts, or a tax lein. You may then be required to submit additional explanations or clarifications. You should also be sure to notify your lender if your personal or financial status changes between the time you submit an application and the time it is funded. If you change jobs, get an increase (or decrease) in salary, incur additional debt or change your financial status, let the lender know promptly. you may also be delayed if the home you selected fails to appraise for the agreed purchase price. What's included in my payment? Principal and interest on your loan. Depending on the terms of your loan, the payment may also include homeowners insurance, mortgage insurance and property taxes. Can I pay those other things separately? Not if is an FHA or VA insured loan. With most other loans you can pay your own taxes and insurance if you borrowed no more than 50% of the purchase price or appraised value of your home. Check with your lender to be sure. What do the closing costs include? Closing costs cover processing and administration of your loan. In addition to a loan fee, you'll usually be asked to pre-pay interest, to cover the partial month in which you close, and impounds for your property taxes, hazard insurance and mortgage insurance.


A real estate transaction is complicated. In most cases, buying or selling a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page government-mandated settlement statements. A knowledgeable guide through this complexity can help you avoid delays or costly mistakes. Selling or buying a home is time consuming. even in a strong market, homes in our area may stay on the market an average of 180 days. And it usually takes another 60 days or so for the transaction to close after an offer is accepted. Real estate has its own language. If you don't know a CMA from a PUD, you can understand why it's important to work with someone who speaks the language. REALTORS are members of the NATIONAL ASSOCIATION OF REALTORS, a trade organization of nearly one million members nationwide. REALTORS subscribe to a stringent code of ethics that helps guarantee the highest level of service and integrity. REALTORS have done it before. Most people buy and sell a home only a few times in a lifetime, usually with quite a few years in between each purchase. And if you've done it before, laws and regulations change. That's why having an expert on your side is critical. REALTORS provide objectivity. Since a home often symbolizes family, rest and security, not just four walls and a roof, homeselling or buying is often a very emotional undertaking. And for most people, a home is the biggest purchase they'll ever make. Having a concerned, but onjective, third party helps you keep focused on both the business and emotional issues most important to you.