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Information for Buyers
Buyer News |
Tips for First
Time Home Buyers:
- Be pre-qualified by a lender.
- Obtain a mortgage
pre-approval.
- Have the necessary funds available to
write an initial earnest money check.
- Have the remaining money for your down
payment easily accessible.
- If you are receiving a “gift letter”
for a portion of your down payment, be sure to have the money
transferred into your savings account.
- Pay balances on
revolving credit cards.
- Do not make big purchases (such as a
car) prior to getting loan approval and closing on your new home.
- Have a credit report run by a credit
agency so that you can clear up any potential problems.
- Find an attorney to review an “offer to
purchase agreement”.
- Be aware of the dates you can move on.
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Steps to Buying a
Home:
- Look for and
interview an agent. (Why
do I need an agent?)
- Clarify your wants
and needs with your agent. Let them know your objectives and your
timetable.
-
Have the agent help you get pre-approved for a
loan.
- Select the best 3 to
5 properties to see.
- View each property
objectively.
- Write an offer to
purchase when you’ve found the right one.
- Have your agent
present your offer immediately.
- Handle all counter
offers and negotiations positively.
- Finalize any loan
details to get final approval.
- Order title insurance
from the company of your choice.
- Have any necessary
inspections or predications completed.
- Do a walk-through
prior to closing on your new home.
- Show up early and
prepared for your closing.
- Keep in contact with
your agent after closing if you have any questions or concerns.
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Common
Closing Costs:
- Down payment
- Loan Origination fee
and points
- Appraisal fee
-
Credit report
-
Flood insurance
- Private Mortgage
Insurance (PMI) premium
- Home Owners Insurance
premium
- Mortgage Insurance
escrow
- Home Owners Insurance
escrow
- Property taxes escrow
-
Closing fees
- Recording fees
- Mortgage Title policy
- Mortgage interest
adjustment
- Survey
- Termite inspection
and building inspection fee
- Notary fees
- Federal Express (if
needed)
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Steps to
Selecting the Right Property:
- Approach the home
buying process objectively—there is no perfect house; the good ones
sell quickly; don’t second guess yourself.
- After
viewing each property, ask yourself: what did you like about it; what,
if anything would you want/need to change; could you see yourself
owning the property if the price was right and at what price.
- Use your judgment
and
the Customized Market Analysis prepared by your agent.
Don’ts for the
Home Buyer:
-
Don’t wait for the perfect house.
Compromising & prioritizing are essential elements of the buying
process.
- Don’t buy before
comparison shopping…especially if you’re new to the area.
- Don’t write an
unrealistic offer or you will simply be helping someone else’s offer
look good (too low of a price…too many contingencies).
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Don’t feel a need to
negotiate if a property is new to the market, priced right and
popular…the good ones often go quickly
and at full or close to full price.
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Don’t think all real
estate agents and companies are created equal. They are not.
Find an agent/company with a great track record
and proven home buying system.
- Don’t be afraid to
write an offer above or below the asking price. Offer what it is
worth to you.
- Don’t work with more
than one agent. Find one you like and stick with him/her.
- Don’t wait for the
perfect time to buy. The best time to buy is when you have found the
right home.
- Don’t get too many
people involved in your buying decision.
- Don’t wait until you
find a home to start looking for the best loan.
- Don’t wait until
after you find a house to be qualified for a loan.
Buyer News
April 2005
- The Home Possible Neighborhood Solution
Mortgage offers features designed to help boost the homebuying power
of teachers, law enforcement officers,
firefighters and health care workers.
For more information, visit
www.freddiemac.com
- Freddie Mac also offers 'Home Possible
Mortgages' to borrowers with limited
credit and savings. This program
combines borrower education with 0 and 3% down payments programs and
flexible credit requirements.
March 2005
- Protecting your credit is more important
than ever. You may know the interest rate a lender charges you
is determined by your credit score, but did you know your
homeowner's insurance and car insurance can be
affected, too? Sometimes by up to
50%! Credit card companies are shortening their pay cycles,
upping your interest rate DRAMATICALLY when you pay late and effecting
the buying power of thousands of consumers. Read the fine print
of your credit card agreement and be diligent about paying them on
time. Better yet, get rid of any you can.
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