The Top 10 Things You Need To Know When Buying A Home
The Top 10 Things You Need To Know When Buying A Home
Money Essentials - Tips for buying a
houseThe top 10 things you need to know
when buying a home.1. Don't buy if you can't stay put.
If you can't commit to remaining in
one place for at least a few years, then owning is probably not for you, at
least not yet. With the transaction costs of buying and selling a home, you may
end up losing money if you sell any sooner - even in a rising market. When
prices are falling, it's an even worse proposition. 2. Start by shoring up your credit.
Since you most likely will need to
get a mortgage to buy a house, you must make sure your credit history is as
clean as possible. A few months before you start house hunting, get copies of
your credit report. Make sure the facts are correct, and fix any problems you
3. Aim for a home you can really
The rule of thumb is that you can
buy housing that runs about two-and-one-half times your annual salary. But
you'll do better to use one of many calculators available online to get a
better handle on how your income, debts, and expenses affect what you can
4. If you can't put down the usual
20 percent, you may still qualify for a loan.
There are a variety of public and
private lenders who, if you qualify, offer low-interest mortgages that require
a small down payment.
5. Buy in a district with good
In most areas, this advice applies
even if you don't have school-age children. Reason: When it comes time to sell,
you'll learn that strong school districts are a top priority for many home
buyers, thus helping to boost property values.
6. Get professional help.
Even though the Internet gives
buyers unprecedented access to home listings, most new buyers (and many more
experienced ones) are better off using a professional agent. Look for an
exclusive buyer agent, if possible, who will have your interests at heart and
can help you with strategies during the bidding process.
7. Choose carefully between points
When picking a mortgage, you usually
have the option of paying additional points -- a portion of the interest that
you pay at closing -- in exchange for a lower interest rate. If you stay in the
house for a long time -- say three to five years or more -- it's usually a
better deal to take the points. The lower interest rate will save you more in
the long run.
8. Before house hunting, get
Getting pre-approved will you save
yourself the grief of looking at houses you can't afford and put you in a
better position to make a serious offer when you do find the right house. Not
to be confused with pre-qualification, which is based on a cursory review of
your finances, pre-approval from a lender is based on your actual income, debt
and credit history.
9. Do your homework before bidding.
Your opening bid should be based on
the sales trend of similar homes in the neighborhood. So before making it,
consider sales of similar homes in the last three months. If homes have
recently sold at 5 percent less than the asking price, you should make a bid
that's about eight to 10 percent lower than what the seller is asking.
10. Hire a home inspector.
Sure, your lender will require a
home appraisal anyway. But that's just the bank's way of determining whether
the house is worth the price you've agreed to pay. Separately, you should hire
your own home inspector, preferably an engineer with experience in doing home
surveys in the area where you are buying. His or her job will be to point out
potential problems that could require costly repairs down the road.
Author:Mike Siers Phone: 252-489-3861 Dated: July 27th 2014 Views: 480 About Mike: Mike Siers is in the top 1% in the Nations top Privately owned Real Estate company, Howard Hanna. W...
About Outer Banks Real Estate Mike and Stacy Siers Howard Hanna
We could give you the scripted bio, but it is the age of Google. Believe me when I say if you are online, you can be found. I want to tell you what you may not know.
Stacy and I have been together for most of our lives. We enjoy being around each other so much we work together. I like to say she keeps me balanced. I have been fortunate to work for many people and companies throughout the Mid Atlantic region and feel that experience has helped me understand people and situations. I have been doing sales for about 20 years, construction during 10 of those years and have managed a few companies along the way. Stacy, operated a HVAC company, managed retail and restaurants. Stacy started in Real Estate in 2008, not the best time if you dare to remember the real estate crash. She motivated me to get my license in 2009 and I started in 2010. I looked at the bad real estate market as an opportunity. A time to learn the market from the bottom up. A time to learn how to sell real estate when no one could buy it. In one of my past jobs, I learned the who, what, whens and hows of sales. I could move products! When I bought my first house out of college, I learned this was one of the most important purchases I would ever make. So when we work with clients, it is about them. We want to know why you are looking, how you want to use the house or what you are selling. What memories you have made from this house. We believe real estate is about people and relationships. We are fortunate to build friendships through real estate. It usually means we go to a lot of dinners in the summer when folks are down. (I really love that part)
The wrap up, Stacy and I won't sell you a house on The Outer Banks of North Carolina. We will work with you, share our knowledge, provide facts and dig for information on every home you are interested in and hopefully grab a bite to eat and share the memories you are making!
"August 5, 2013......
To Whom It May Concern,
During the winter of 2013, my wife Amy and I decided to invest in a property at the Outer Banks. Like many, we vacationed here often and enjoyed the family-friendly atmosphere and beautiful beaches. I spent countless hours searching MLS sites for various opportunities, making off-season trips and reading plenty of interesting and helpful articles..
Many of these articles promoted a Buyer Agent and, honestly, I thought I knew the value but many of the articles I found were posted by realtors. I knew I wanted someone to represent me when I found a house and didn’t need folks pestering me with sales calls.
I could not have been more wrong.
We engaged with Mike Nolan during one of our early searches. Mike took the time to understand what brought us here, what we were looking for and what a successful investment would be when we look back. Mike’s understanding of the market is extremely deep and his contacts up and down the peninsula are extensive. There are many people in the agent business as a second job or career, and many professional, but Mike’s understanding of the people and process proved invaluable.
We found what we thought was our property and Mike’s quick action and depth helped immediately to provide us first shot at the house. During the due diligence period we uncovered some issues that prevented us from investing. Mike talked it all through with us without pushing for a transaction and moving on as many may have done.
We started on a second home and knew immediately it was what we were looking for. Again Mike navigated us perfectly through the process. His response times were near immediate and he constantly communicated every step of the way. Just when we thought we were clear, a problem arose threatening our bid on the house. We were on the outside looking in as far as some were concerned.
We would not have this house today if it wasn’t for Mike’s professional depth, contacts and persistence. He had us protected the entire time and managed us through some rocky days. He educated other agents and was incredible in securing the house.
Thank you again Mike. And for any others reading this with interest in real estate investments, you will be in excellent hands with Mike on your team. Good luck in your search......