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Buying Advice
Buying a Home
Here are
some tips to help you become your own landlord:
1.
Hire a
real estate professional.
The first step is to select a professional to help you find your dream
home and fine-tune your financial expectations. Working with a buyer
agent is worth consideration since he is legally responsible for
representing the buyer's interest in a real estate transaction. Before
making a decision, however, have me explain the pros and cons of using a
buyer agent versus a sales or dual agent. I can guide you through every
step to buying a home.
2.
Shop for
mortgage rates and terms.
A difference of even half a percentage point can mean a huge savings
over the life of a loan. For example, the difference in the monthly
payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35
per month. Over 30 years, that's $12,600.
3.
Prequalify for a loan.
Your third step should be to get prequalified, which determines how much
you can afford. It allows you to move swiftly when you find the right
home, especially when there are other interested buyers. It also
indicates to the seller that you are serious and really can afford to
buy the property.
4.
Define
what you want.
The next step is to create a realistic idea of the property you'd like
to buy. What features are most important to you? Make two lists: one of
the items you can't live without and one of the features you would
enjoy. Refine the lists as you house hunt. It is also helpful to search
online to see what is currently available on the market. I can then show
you houses that meet your expectations.
5.
Visit
properties.
Now you're ready to visit houses. Ask me to arrange showings, and keep
track of the properties you've seen.
6.
Know the
features that help or hurt resale.
In some areas, a swimming pool actually detracts from a home's value and
makes it harder to sell. In neighborhoods with two-car, attached
garages, a single-car or detached garage may impact the home sale and
future value. I can point out features that hurt or help resale value.
7.
Rate the
houses you tour.
After touring each home, write down what you liked and didn't like.
Develop a rating system that will help narrow the field down. For
example, pick the house you like best on day one and compare all other
houses to it. When you find a better one, use the new favorite as the
standard.
8.
Make an
offer.
Once you've pinpointed your dream house, it's time to get serious about
the financial and contractual side of the purchase. I will be a strong
advantage since you and the seller have different goals.
9.
Arrange
for a home inspection.
After your offer is accepted, set up a home inspection. It's common to
find problems, including leaky roofs, cracked walls, insect infestations
and foundation problems. I can help find a reputable inspector, and will
negotiate to get you the most for your money once the inspector's report
is final. If you negotiate repairs as part of the purchase, ask for a
"walk through" before finalizing the paperwork. Ask me about home
protection plans, which may save you money in the near future.
10.
Close.
Before your closing date, make sure you've made all necessary deposits
and completed the paperwork - including mortgage, title, homeowners
insurance and any other paperwork required by local or state
governments.
11.
Prepare
for life in your new home.
Before rolling out the welcome mat, consider some moving basics:
arranging for an alarm company, turning on electricity, water and gas,
cleaning or replacing the carpet, and notifying your local post office
of your new address. The best time for renovations is often before you
move in.
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