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Showing posts from 2013

Selling a home "as is" and inspections

A home inspection is an important step in buying a home. As part of your purchase agreement you may add an inspection contingency for a small price (typically $100-$150 for 7-10 days). This contingency will give you the ability to inspect the property and back out of the offer, free of penalty (except the option fee), if you don't like the results.

Although a home inspection can't identify everything that might be wrong with the property; they specifically look for visual cues to problems. For example: if there is a small leak in the wall but there are no visual signs of such leak, this issue might be overlooked.  A good inspection will examine some of the most important components of the home and it will last from 2-3 hours. Ask your home inspector for a list of items that he/she will examine.

The inspection report will give you a general idea of what might be wrong with the property. If you are concerned about a specific issue, you should hire a specialist in that area. Home i…

Ready to buy a home? Have you been pre-approved for a loan?

Are you ready to buy a home? Have you been pre-approved?

We are now in a seller's market which makes the home buying process very competitive. Multiple offers on properties are becoming more common so it's crucial for buyers to be prepared. Any small advantage, may make the difference between being accepted or denied.

If you plan on financing your property it is important to get pre-approved for a loan. There is a difference between pre-qualification and pre-approval. A pre-qualification can be done by phone and most, if not all, the information provided is verbal. A Pre-qualification is based on what you disclose to the lender about your earnings, credit score and assets. A pre-qualification gives you a simple idea of the range of price you might be able to afford. This carries no weight for a seller.

A pre-approval requires a borrower to provide documentation of their income and assets. The lender will also run a credit report and score. The bank will require tax documentation,…

Are you financially ready to buy a home? Your cash

Are you financially ready to buy a home? Your cash
There are several expenses incurred when buying a home. These are expenses that must be paid before, at closing and after. It’s important that you have these funds ready and available once you start the process.
Some of these funds may be gifted but check with your lender. Some lender will ask for a letter stating that the funds are a gift and not a loan.
Below you will find the closing costs for a home purchased for $150,000.00 and using an FHA loan.* This is just an estimate. Exact figures will vary based on your closing date, lender and title company.

Home Price - $150,000Down Payment - $5,250Interest Rate - 3.750%PITI (principal, interest, taxes and insurance) - $1,238

Prepaid costs:Prepaid items are always required at loan closing, whereas escrow accounts are only required in certain cases. Even if you close your loan right before the month's end, you owe your lender at least a few day's worth of mortgage interest. This is be…

Are you financially ready to buy a home? Your credit

Are you financially ready to buy a home? Your Credit
The first and most crucial step to buying a home is to get your finances in order. This is very important because it will affect you for many years.
Most home buyers op for a 30 year fixed rate mortgage. What this means is that you will be paying the same mortgage payment for 30 years. The amount you pay is calculated using the home price but also the interest rate you lock in. It’s to you advantage to lock in the very lowest rate.
The difference between a 3% interest rate and a 5% interest rate on a $150,000 loan is approximately $170 extra a month; that is $2,000 extra a year on just interest! Consider this money lost because it does not go towards the price of the home.
See it for yourself, enter your own numbers in this mortgage calculator
Before you go to the bank to get pre-approved, you need to check your credit history and credit score. These two are different. Your credit history is just that, a list of places where you have e…