INTERO Real Estate
property sellers won't call you with an offer to buy a maintenance-free property with a wonderful mortgage. You have to find the gems yourself! Only by reading available materials, talking to friends and experts, and spending time looking at different Properties, schools, and neighborhoods will you end up with your American dream. Avoid the nightmares by learning how best to buy and maintain a property.
Every important decision needs to be clearly thought out. Developing a property buying plan can help you focus on the important factors and organize the entire process. You may even want to use a binder with sections on house hunting, property financing, service providers, etc. Loan pre-qualifying helps you determine the property price you can afford and presents you as a genuine prospect to the seller. A lender typically uses the 28% formula (your monthly mortgage can't exceed 28% of your monthly income) in approving your loan. Planning your actions and getting pre-qualified will keep you out of the panic mode and allow you to take advantage of opportunities. A thorough plan will save both time and money!
The days of 10-30% annual appreciation have passed. propertybuyers in the 1970's benefited tremendously from what seemed like ever appreciating property prices. Nowadays, you're looking at slow growth while guarding against the possibilities of falling prices, skyrocketing ARM rates and corporate layoffs that can dramatically affect your property values. The classic rule of buying the worst house in the best neighborhood still applies. If you buy with an eye towards improvement, you can customize the property to fit your needs. The saying, "make money buying a property, not selling one," should keep you focused on the long-term importance of the purchasing price.
When shopping for a property, list the features (fireplace, fenced-in yard, new appliances, etc.) that are most important to you in deciding on which property to buy. Establishing "your criteria" early on will save time shopping for inappropriate Properties and may keep you from buying a property on a whim. As detailed in Tip #3, your top reason for buying a property should be the value you are getting. Some of your top 10 amenities should logically be sacrificed if an incredible value is available.
Adjustable rate mortgages have an initial fixed rate, which is followed by a period of adjustment intervals during which the rate adjusts based on the performance of several key indexes. Typically the initial fixed rate on an ARM is slightly lower than the comparable rate of a fixed rate mortgage.
Fixed rate mortgages allow buyers to take out a long term loan without having to worry about changing interest rates or monthly payments. Most fixed rate loans are offered in either 15 or 30 year terms.
Most buyers will be well served by a fixed rate loan, but each situation is unique. While ARM loans have become less popular in recent years, they can still be a viable option for some buyers - especially those who plan on selling again in the short term.
Whichever loan you choose; make sure that you scrutinize all the closing costs. If you are required to have a mortgage escrow account and private mortgage insurance, make sure you understand the terms and cancellation procedures (your Real Estate Agent has publications to assist you). Also, make sure there are no prepayment penalties so that you can utilize an accelerated mortgage plan. A good mortgage reduction plan can save you tens of thousands in interest costs, and shorten your loan term, with only small extra principal payments. If you experience negative changes in your job, health, or marital status, you can revert to the standard payments in your mortgage contract.
Make sure that the contract you put on a house allows you to arrange financing, inspect the property and negotiate any problems that you uncover. Ensuring that the contract you sign will minimize potential legal battles will let you swim in your new pool with your family and neighbors instead of with the sharks.
You are about to make one of the most important decisions that will affect both your life and the life of the seller. If you take time to understand the reasons the seller bought the property, their reasons for selling, and the property improvements they have or have not made, you'll be in a better position to evaluate the property and negotiate a better deal. In the end, the property buying process excludes the professionals and comes down to the individuals buying and selling the property. A closer look at the seller may help you in deciding whether and for how much to buy a particular property.
One of the biggest decisions to make before putting a contract on a property is how to finance the purchase. There are 10,000 lenders competing for your mortgage business. The days of simply walking into the community bank and negotiating with the loan department manager are over. Today, you can apply for a loan over the Internet or even use a mortgage broker to shop for your loan with hundreds of lenders. When choosing a lender, you want to avoid apples to oranges contrasts by comparing fixed rates to fixed rates, not fixed to ARM's. Create a chart that lists different types of loans, fees, and at least five mortgage providers (including a mortgage broker).
Although it is hard to believe, more people pay for inspections before buying used cars than when making the biggest investment of their lives - their Properties. Paying for a qualified property inspection before you buy a property isn't just spending "a little extra" for peace of mind; it's absolutely essential for anyone who doesn't want to spend thousands of dollars for repairs.
To protect both you as a buyer, as well as the seller, it is a good idea to purchase a property protection plan.? What exactly is it? A property warranty, or property protection plan, is a service contract, normally for one year, which protects propertyowners against the cost of unexpected repairs or replacement of their major systems and appliances that break down due to normal wear and tear. A negotiable contract between the buyers and sellers which does not overlap or replace propertyowner's insurance policy, this type of warranty can save the new propertyowner lots of headaches, as well as put seller's fears to rest. The warranty covers mechanical breakdowns, while insurance typically repairs the related damage. For example: if a hot water heater burst and destroyed a wall in your property, the warranty would repair the water heater and your insurance would pay to fix the wall.