Buyer Bullets - helpful hints when buying a house.
Being pre-qualified for a loan determines how much house you can afford. It also allows you to move more swiftly when you find the right house, especially when you are not the only interested buyer.
A difference of even half a percentage point can make a huge difference in how much you pay over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8% vs. 7.5% is about $35 per month. Over 30 years, that's $12,600!
A buyer agent is legally responsible for representing the buyer's interest in a real estate transaction. Generally, the buyer agent is compensated by the seller at the time you purchase a new home. There can be instances whereby the agent may be compensated directly by the buyer.
The transaction broker does not legally represent the buyer or the seller. His/her primary objective is to create a meeting of the minds between the buyer and the seller on a particular real estate transaction and ultimately close on the deal between the two parties.
When considering a house for purchase, be aware of some features that can hurt the resale of that home when the time comes to sell. IE, swimming pools, attached/detached garages or carports, or no covered parking at all. These features vary in different market areas, so consult your Realtor on this issue.
Some of the things you should consider are (1) is the asking price in line with the prices of similar homes in the area? (2) Is the home in good condition or will you have to spend a substantial amount of money making it the way you want? Get a professional inspection to help answer this question. Your agent can assist you with this.
Things to consider when gathering your resources together are earnest money -the deposit usually required along with the contract offer that goes toward the purchase price to show the seller you are serious about wanting to buy the house, the down payment -the amount of money that you put towards the purchase price-- usually anywhere from 0 - 20 percent that you must you pay at closing. Anything at or more than 20% can reduce your monthly payment substantially. Then finally, the closing cost. These are the costs associated with processing the paperwork and various fees the lender charges to buy a house. Typically, this is about 3% - 4% of the loan amount for the house.
Each of these factors can vary substantially. You should shop 2 - 3 mortgage companies to find the loan type and the interest rate that best fits your needs. There are a multitude of loan programs available and new ones seem to pop up each week.
Closing is where the real estate transaction is culminated. If you're getting a new loan, you will have gone over various paperwork that stated the guidelines for your new loan. Based on this paperwork, the closing agent (attorney) will have you sign all paperwork issued by the lender and its underwriters. The closing agent will go over each piece of paper that you will be asked to sign. If you have ANY questions regarding any of this, you need to ask the closing agent (attorney) or your lender at the closing.
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