November 22nd, 2017 7:11 AM by Jackie A. Graves, President
ready to own the house of your dreams. But before you make an offer, it pays to
ask some key questions. If you’re armed with the right information, it can help
you feel more confident that you’re making the right move on the right house.
may think you know the right price range to match your income and assets, but
there may be other costs you hadn’t considered.
we have found from our profiles of buyers and sellers is that when potential
buyers start to look at homes, they go online. But they don’t necessarily know
how much they can afford,” says Jessica Lautz, managing director of survey
research and communications for the National Association of Realtors.
other payments that may come up beyond the initial price of the home.
Renovations, repairs and cosmetic changes all may have to be factored into the
cost. Get an estimate of your monthly mortgage payments and
see how other costs will factor into your budget.
if you think you’ve found the right house at a price that suits your budget,
you’ll still need to show that you can close.
you make a purchase offer on a home, it’s important to get preapproved for a mortgage. Not only will
a preapproval tell you how much home you can afford, but it shows a seller that
you have the means to buy their property and can close the sale quickly,” says
Laura Adams, senior insurance analyst at insuranceQuotes.com.
your credit score https://my.bankrate.com/ to make sure
you’ll get preapproved by a lender. Even if you show enough income, a blemished
credit history may disqualify you from the best rates.
know whether a 15-year or a 30-year loan is right for
you? What about a fixed-rate or variable-rate mortgage? There is no
one-size-fits-all mortgage and the various terms and differences between types
can be overwhelming.
a knowledgeable loan officer can be paramount to helping you get the best loan
for your needs, says Henry Brandt, branch manager for Planet Home Lending.
really critical for a borrower to find a good loan officer that knows all the
products available so they can help you meet your wants and show you how to get
there,” he says.
more than just the down payment. You also have to have the funds for the
closing costs,” says Brandt.
costs may include attorney fees, real estate agent
commissions, home inspection bills, and title insurance, all of which are
typically due at the time of signing.
may also have to be prepared to hand over more money beyond these one-time fees
depending on how they’re financing the purchase.
if the home you wanted to buy looked perfect, but had a history of termite
infestations? As a buyer you should know if there was any previous damage to
the house before you make your offer.
request a copy of the C.L.U.E. (Comprehensive Loss Underwriting Exchange)
report from the seller. This little-known database maintains all insurance
claims for homes and vehicles. It allows you to see what claims were filed on
the property for up to the previous seven years,” says insuranceQuotes.com’s
it comes to making your offer, it can be a bit of a cat-and-mouse game. Make
too low of an offer and you risk losing the home to someone else. But offer too
much and you could end up overpaying.
buyer’s agent should tell you the prices that comparable homes in the area have
recently sold for, along with high and low ranges for a particular property so
you can try to price your offer right the first time.
out how much time the seller will need to respond to your offer so you can be
prepared, if necessary, with a counteroffer that fits within your budget.
you want your offer to win, it can be a good strategy to put a compelling story
together, and send a personal note,” says Dave Mele, president of Homes.com.
Mele advises getting to know the sellers and sharing with them your vision of
how you’ll enjoy the home. He says this can make the difference between your
offer being accepted over someone else’s.
allows you to connect with them emotionally and that can actually trump the
finances in the right situation,” he says.
By Robin Saks Frankel – To view the original article click here