You need to get your hands on your
personal credit report and review your history. Look for any errors,
discrepancies and potential problems.
2. START
WITH A LENDER — NOT A REAL ESTATE AGENT
After you have a credit report on
yourself, you need to obtain a "pre-qualification loan
certificate;" this document is available in your "Right Home
Buyer's Package." One of our loan specialists can help you
pre-qualify for a loan. This will help you to determine how much house
you can afford to buy. Usually, the lender will lock-in a loan rate for
30 to 45 days on such certificates, thus guaranteeing the monthly
payment schedule based upon the information you have provided.
"Loan Certificates" give the buyer a much better idea of what
you're getting into and they also put you in the category of being a
"serious buyer."
3. SHOP
CAREFULLY
Once you have a loan certificate, you
can visit as many real estate offices as you like. You're in the
driver's seat! Agents will always attempt to direct you to their own
listings first, and those homes do not always represent the entire
market in any one area. So visit more than one real estate office. Our
home specialists would gladly help you in this process as well.
For a buyers list click
here
4.
INSPECTIONS
Never agree to buy a home without a
detailed termite inspection—and—a home inspection by a certified
home inspector. Home inspectors are not licensed, so look for one that
is a member of the Real Estate Inspectors Association Also, you need a
termite inspection (make sure the foundation isn't eaten out), and a
roof inspection (don't get flooded out!)
5.
ESCROW
Once you find your home, you will open
an escrow. Any special instructions on your part must be included in
writing in the escrow document, or they don't count! You should wish to
include such things as repair or replacement of any damaged areas of the
home as identified by the home, roof or the termite inspector. Agreement
to repair or replace can be either by the seller, or by the buyer based
upon a price reduction to accommodate the expense of the repair. Our
in-house escrow officers are available to process this aspect of your
home-buying experience as well.
6.
ENERGY
Buying an older home? Get the EEM! You
can borrow an additional $5,000 to $8,000 in extra money to make your
older home energy efficient, and this will not affect your credit
worthiness for the principal loan. Most important, the EEM will usually
save you more money through reduced energy bills than it will cost you.
Call our office for questions and help.
7.
INSURANCE
Shop your homeowners insurance early.
California has suffered an insurance drought due to earthquake insurance
requirements. Most buyers don't even bother to request earthquake
insurance anymore—too expensive. That is up to you. But remember,
finding regular homeowners insurance can take you a full 30 days. Call
us if you're having problems; we may be able to help.
8. THE
OFFER
When you make an offer, don't worry
about the asking price; always offer less and expect to negotiate a
price. Offers and counteroffers are the norm these days. By shopping
more than one house in a given area, you should have a better idea of
what might be fair. Remember: Real estate prices are still fluctuating
and the asking price is always high!
9. TERMS
YOU SHOULD KNOW:
a. ARM—Adjustable
Rate Mortgage: A mortgage rate that can fluctuate
periodically. Normally these are capped at 2 percent a year and are
not more than 6 points above the starting point.
b. Fixed-rate
mortgage: a loan that carries an unchanging rate of
interest over a specified term.
c. Binder:
an earthly agreement to buy a home from a seller, which is ensured
with earnest money.
d. Commitment
letter: a written promise from the lender that you
will receive a mortgage of a specified amount at a specified rate.
e. Conditional
offer: an offer to buy property under certain
circumstances.
f. Escrow:
the process in which you deposit money with a third party who holds it
until the deal is final.
g. Point:
a one-time only fee you pay upfront to your lender, sometimes in
exchanged for a lower mortgage rate.
INFORMATION
CENTER
