Christy Curtis
(530) 587-2856 Local
(800) 587-2856 Toll Free
Email |
 |
|
 |
|
Buying
Lake Tahoe Real Estate - Top 10 Tips to Successful Home Buying
Tip #1: Research Is The Key To Discovery
Home sellers won't call you with an offer to buy a maintenance-free
home with a wonderful mortgage. You have to find the gems yourself!
Only by reading available materials, talking to friends and
experts, and spending time looking at different homes, schools,
and neighborhoods will you end up with your American dream.
Avoid the nightmares by learning how best to buy and maintain
a home.
Tip #2: Make A Plan And Get Pre-Qualified
Every important decision needs to be clearly thought out.
Developing a home buying plan can help you focus on the important
factors and organize the entire process. You may even want to
use a binder with sections on house hunting, home financing,
service providers, etc. Loan pre-qualifying helps you determine
the home price you can afford and presents you as a genuine
prospect to the seller. A lender typically uses the 28% formula
(your monthly mortgage can't exceed 28% of your monthly
income) in approving your loan. Planning your actions
and getting pre-qualified will keep you out of the panic mode
and allow you to take advantage of opportunities. A thorough
plan will save both time and money!
Tip #3: Value, Value, Value
The days of 10-30% annual appreciation have passed. Home
buyers in the 1970's benefited tremendously from what seemed
like ever appreciating home prices. Nowadays, you're looking
at slow growth while guarding against the possibilities of falling
prices, skyrocketing ARM rates and corporate layoffs that can
dramatically affect your home values. The classic rule of buying
the worst house in the best neighborhood still applies. If you
buy with an eye towards improvement, you can customize the home
to fit your needs. The saying, "make money buying a home,
not selling one," should keep you focused on the long-term
importance of the purchasing price.
Tip #4: Create A Top 10 List of Amenities
When shopping for a home, list the features (fireplace,
fenced-in yard, new appliances, etc.) that are most important
to you in deciding on which home to buy. Establishing "your
criteria" early on will save time shopping for inappropriate
homes and may keep you from buying a home on a whim -- for example,
because of a circular stairwell -- that doesn't meet your fundamental
requirements. As detailed in Tip #3, your top reason for buying
a home should be the value you are getting. Some of your top
10 amenities should logically be sacrificed if an incredible
value is available.
Tip #5: Fixed vs. Adjustable Rate Mortgages
Which type of loan fits your particular needs? If this
will be your first home or a "transitional home" --
one you plan to own for a short time, an ARM may be the best
type of loan. If it's going to be your dream home or one you
plan to raise a family in, then you may want the stability of
a fixed rate mortgage. If you choose an ARM, the index should
be based on the Cost of Funds Index if rates are increasing,
and Treasury Bills if they are decreasing. The COFI's are less
volatile over time than T-Bills; make sure the teaser rate is
understood and what the real rate would be.Whichever loan you
choose, make sure that you scrutinize all the closing costs.
If you are required to have a mortgage escrow account and private
mortgage insurance, make sure you understand the terms and cancellation
procedures. Also, make sure there are no prepayment penalties
so that you can utilize an accelerated mortgage plan. A good
mortgage reduction plan can save you tens of thousands in interest
costs, and shorten your loan term, with only small extra principal
payments. If you experience negative changes in your job, health,
or marital status, you can revert to the standard payments in
your mortgage contract.
Tip #6: Sign A Contract That Protects You
Make sure that the contract you put on a house allows you to
arrange financing, inspect the home and negotiate any problems
that you uncover. Ensuring that the contract you sign will
minimize potential legal battles will let you swim in your new
pool with your family and neighbors instead of with the sharks.
Tip #7: Put Yourself In The Seller's Shoes
You are about to make one of the most important decisions that
will affect both your life and the life of the seller. If
you take time to understand the reasons the seller bought the
home, their reasons for selling, and the home improvements they
have or have not made, you'll be in a better position to evaluate
the home and negotiate a better deal. In the end, the home
buying process excludes the professionals and comes down to
the individuals buying and selling the home. A closer look at
the seller may help you in deciding whether and for how much
to buy a particular home.
Tip #8: Develop A Mortgage Shopping Chart
One of the biggest decisions to make before putting a contract
on a home is how to finance the purchase. There are 10,000 lenders
competing for your mortgage business. The days of simply walking
into the community bank and negotiating with the loan department
manager are over. Today, you can apply for a loan over the Internet
or even use a mortgage broker to shop for your loan with hundreds
of lenders. When choosing a lender, you want to avoid apples
to oranges contrasts by comparing fixed rates to fixed rates,
not fixed to ARM's. Create a chart that lists different
types of loans, fees, and at least five mortgage providers (including
a mortgage broker).
Tip #9: Get A Quality Home Inspection
Although it is hard to believe, more people pay for inspections
before buying used cars than when making the biggest investment
of their lives -- their homes. Paying for a qualified home inspection
before you buy a home isn't just spending "a little extra"
for peace of mind; it's absolutely essential for anyone who
doesn't want to spend thousands of dollars for repairs.
Tip#10: Peace of Mind: Home Protection Plans
To protect both yourself as a buyer, and well as the seller,
it is a good idea to purchase a home protection plan. What exactly
is it? A home warranty, or home protection plan, is a service
contract, normally for one year, which protects homeowners against
the cost of unexpected repairs or replacement on their major
systems and appliances that break down due to normal wear and
tear. A negotiable contract between the buyers and sellers
which do not overlap or replace homeowner's insurance policy,
this type of warranty can save the new homeowner lots of headaches,
as well as put seller's fears to rest. The warranty covers mechanical
breakdowns, while insurance typically repairs the related damage,
for example: if a hot water heater burst and destroyed a wall
in your home, the warranty would repair the water heater and
your insurance would pay to fix the wall.
Contact Christy Curtis Today!
Information provided by The American Homeowners
Association, Copyright© 1998Any questions about Lake Tahoe
real estate should be directed to Christy Curtis
|
|
|
