For many people, it is the most important financial transaction realize. This is why you should do things right the first time is so important. Sometimes, buying a home can feel like a dizzying array of rules and regulations. Luckily, if you have the right knowledge, you can start fulfilling your dreams owner (of a quick and easy way).
Make an offer
- If possible, offer adapts to the circumstances of the seller. It will not be easy and, often, it is impossible, but do not lose anything to try if you go to make one of the most important purchases of your life. Here are some things you should consider when thinking about your offer:
- What are the financial prospects of the seller? Desperately need the money or wealthy? Vendors with liquidity problems are more likely to accept a lower offer than its original price.
- How long it has the house on the market? The houses that have been on the market for long periods of time usually can be lowered.
- Already you bought another house? If the seller does not currently live in the house you intend to sell, it may be easier to make a lower offer.
- Check similar properties when you make your offer. What was the “sale price” Initial other houses in the neighborhood and how much they were sold at the end? If other homes in the city sold a 5% below the initial price, consider making an offer between 8% and 10% below the initial asking price.
- Calculate your expenses planned housing. Calculate the property tax and annual insurance costs in your area and the average housing price you want to buy. It also adds the amount you could expect to pay in closing costs. These include various commissions that generally amount to 3 or 6 percent of the money you borrow. Credit unions often offer lower closing costs to its members. Put the total on a mortgage calculator (you can find it online or make their own in a spreadsheet) .If the figure is more than 28% of your gross income (or whatever the lowest percentage that lenders use your case), then it will be difficult to get a mortgage.
- Determine if you need to sell your current home in order to afford a new one. If so, any offer to purchase you make will be conditional on the sale. Contingent offers are riskier and less desirable for the seller, since the sale may not realize until it has sold the house buyer. You may first want to put your home on the market today.
- If you fall completely a house, you must be prepared to make an offer that is above the selling price. The theory of supply and demand sometimes crushes you. If there are many people competing for few houses, you must be prepared to make an offer as high as possible. Some buyers do not believe that should make the highest bid, but can someone overcome easily and so you never have the opportunity to make an offer for the house. If you want to have the best chance of buying a house that you really like, make a higher offer.
- Talk to your real estate agent when you’re ready to formally present your offer. Although the guidelines for the submission of tenders may vary from one state to another, usually it involves sending your offer to real estate agent, who will then send it to the representative of the seller. Then the seller decides to accept, reject or make a counteroffer.
- It includes a pledge of good faith offer. Once you sign an offer, you must make a security deposit, which means you are committed to buy the house or lose your deposit, unless not obtain the final approval of the mortgage or arising out something during inspection at the warranty period is not acceptable. During the warranty period (usually 30 to 90 days), the lender coordinates the financing of the purchase and ends the coordination of the mortgage.
- Determines the amount of down payment you have to give in advance. A down payment establishes ownership of a house. Moreover, it is money that you do not have to pay interest. The greater the amount of down payment you make for your home, the less you’ll pay in the end.
- Is expected to hasten 10 to 20% of the appraised value of a house. Please note that the appraised value may be higher or lower than the selling price of the house. For example, if you have US $ 30,000 saved for the down payment, you can use as a down payment for a house of US $ 300,000 (down payment of 10%) or US $ 150,000 (down payment of 20%). Give a down payment less often, but not always, it requires you to pay private mortgage insurance, which increases the monthly cost of housing, but is tax deductible.
- If you can not afford a 10 or 20% down payment but have good credit and a steady income, a real estate agent can help you with a combination or FHA mortgage. In that case, you will take a first mortgage of up to 80% of the value of the home and a second mortgage for the remaining amount. Although the rate of the second mortgage will be a little higher, the interest is tax deductible and the combined payments however must be lower than a first mortgage with private mortgage insurance. If you’re buying a new home, consider the Nehemiah Program for help with the down payment.
- Make sure that the final decision is based on a proper home inspection. Ask for the following studies and reports: inspection, pests, fungal rot, radon, hazardous materials, landslides, flood plains, earthquake faults and crime statistics. Usually you have 7 to 10 days to complete inspections (make sure your agent explain it completely when signing the purchase contract).
- A home inspection costs between US $ 150 and US $ 500, depending on the area, but can save an error of $ 100 000. This is especially true for older homes, and you should avoid financial mines and paint content of lead, asbestos insulation and mold.
- If you use the inspection results to negotiate a reduction of the sales price, do not make reference to inspection or offers remodeling your contract. The credit company can ask to see a copy of your inspection, which will replace the assessment of their appraiser.
- Make an energy audit of the home and make sure the contract is subject to the result. Getting a home energy audit is an essential part of home buying. Not knowing what it really costs the heating and air conditioning of a home is a potential financial disaster waiting to happen. Home buyers make “guesses” when calculating the budget for a new home. These estimates may be significantly incorrect and put in tough economic circumstances families.
- Close the security deposit. This usually takes place in an office of security deposits and involves the signing of related property and arrange mortgage documents. The documents include writing, showing that now you own the house, and the title, which shows that no one else has a right to him or establish a lien against it . If there are still problems, money can be kept in an escrow account until they are resolved, which acts as an incentive for the seller to quickly solve the problems, in order to receive all that is owed.
- Consider working with your real estate attorney to review closing documents and to represent you at closing. Remember that realtors cannot give you legal advice. Lawyers can charge $ 200 to US $ 400 for the few minutes that really are there, but you pay them to protect you.
- Make sure you have money saved before you start looking for a house.
- Try not to fall for a single property. It’s great to find exactly what you need, but if you put your whole heart into a house, you could end up paying more than it’s worth because you have involved your emotions The deal could also fall apart. You must be willing to give up; no house is so perfect for the seller can charge whatever he or she pleases.
- Never take a calibrator or start measuring room. In this way, the agent knows you’re emotionally attached and could ask any price.