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Tip #2: Make A Plan And Get Pre-Qualified
Carefully examine each important decision and think it
through. Develop a well organized plan for making your Simpsonville
home purchase. Focus on the most important factors. Create file folders
on house hunting, Simpsonville home financing, service providers, etc.
Get yourself pre qualified for a loan so you can determine the
amount of Simpsonville home you can afford. Getting pre qualified also
increases your chances of closing a deal, The seller is more
likely to accept an already funded offer than one from a Simpsonville home
buyer who still needs to get a loan. Lenders usually employ the 28%
formula (your monthly mortgage must not exceed 28% of your monthly
income) in approving your loan. Plan your actions and get pre
qualified, this reduces the chance of panic situation and allows you
seize opportunity when it is presented. A thorough plan will save
both time and money!
Tip #3: Value, Value, Value
The days of 10-30% annual appreciation still exist. Home buyers
in the 1990's benefited tremendously from what seemed like ever appreciating
home prices, now we are seeing growth along the same lines. Nowadays,
you're looking at stable growth while guarding against the possibilities
of falling prices, low interest rates and corporate layoffs that can
dramatically affect your home 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 home to fit your needs.
The saying, "make money buying a home, not selling one," should keep
you focused on the long-term importance of the purchasing price.
Tip #4: Create A Top 10 List of
Amenities
When shopping for a home, list the features (fireplace, fenced-in
yard, new appliances, etc.) that are most important to you in deciding
on which home to purchase. Establishing "your criteria" early on
will save time shopping for inappropriate Simpsonville homes and may keep
you from buying a Simpsonville home on a whim -- for example, because of
a circular stairwell -- that doesn't meet your fundamental requirements.
As detailed in Tip #3, your top reason for buying a home should be the
value you are getting. Some of your top 10 amenities should logically
be sacrificed if an incredible value is available.
Tip #5: Fixed vs. Adjustable Rate
Mortgages
Which type of loan fits your particular needs? Are you a first
home buyer or are you moving to a larger home? If you're planning to
own for a short time, an ARM may be the best type of loan. If
you're shopping for your dream home or you plan to raise a family, a
fixed rate mortgage may be more suitable for you. If you choose an ARM,
the index should be based on the Cost of Funds Index if rates
are increasing, and Treasury Bills if they are decreasing. The
COFI's are less volatile over time than T-Bills. Find
out what the teaser rate is and what the real rate would be.
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. 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.
- View Simpsonville
Homes for Sale with Photos -
Tip #6: Sign A Contract That Protects
You
Make sure that the contract you put on a house allows you to arrange
financing, inspect the home 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.
Tip #7: Put Yourself In The Seller's
Shoes
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 Simpsonville home, their
reasons for selling, and the Simpsonville home improvements they have or
have not made, you'll be in a better position to evaluate the home and
negotiate a better deal. In the end, the home buying process excludes
the professionals and comes down to the individuals buying and selling
the home. A closer look at the seller may help you in deciding whether
and for how much to buy a particular home.
Tip #8: Develop A Mortgage Shopping
Chart
One of the biggest decisions to make before putting a contract on
a home 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).
Tip #9: Get A Quality Home Inspection
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 Simpsonville homes. Paying for a qualified home inspection before
you buy a home 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.
Tip#10: Peace of Mind: Home Protection
Plans
To protect both yourself as a buyer, as well as the seller, it is
a good idea to purchase a home protection plan. What exactly
is it? A home warranty, or home protection plan,
is a service contract, normally for one year, which protects homeowners
against the cost of unexpected repairs or replacement on their major
systems and appliances that break down due to normal wear and tear.
A negotiable contract between the buyers and sellers which do not overlap
or replace homeowner's insurance policy, this type of warranty can save
the new homeowner 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 Simpsonville home, the warranty would
repair the water heater and your insurance would pay to fix the wall.
Information
provided by The American Homeowners Association, Copyright© 2005
Simpsonville Real Estate services for buying and selling offered by the Realtor
below:
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