The top 10 mistakes when buying a house1. Looking for a home without being pre-approvedAs a potential buyer competing for a property, you'll have a better chance of getting your offer accepted by being as prepared as possible. Consider this hierarchy of preparedness:
Neither pre-qualified nor pre-approved This buyer provides no evidence that they can afford to purchase your property. You may wonder how serious they are since they're not at least pre-qualified.
Pre-qualified This buyer has met with a mortgage lender and discussed their situation. The buyer has informed the lender regarding their income, expenses, assets and liabilities. The lender may also have seen their credit report. The buyer provided you with a letter from the broker stating an opinion of what the buyer can afford.
Pre-approved This buyer has provided a lender written evidence of income, expenses, assets, liabilities and credit. All information has been verified by a lender. As a result, much of the paperwork for this buyer's loan has been completed. This buyer will probably be able to close quickly. They provide you with a letter (pre-approval certificate) from the lender. You're as certain as possible that this buyer can close.
As a potential buyer, you can see that being pre-approved will give you the best chance of getting your offer accepted. This is critical in a competitive situation.
2. Making verbal agreementsIf you're asked to sign a document containing instructions contrary to your verbal agreements-don't! For example, the seller verbally agrees to include the washing machine in the sale, but the written purchase contract excludes it. The written contract will override the verbal contract. More importantly, your state may require that contracts for the sale of real property be in writing. Do not expect oral agreements to be enforceable.3. Choosing a lender just because they have the lowest rateWhile the rate is important, consider the total cost of your loan including the APR, loan fees, discount and origination points. When receiving a quote from a lender, insist that the discount points (charged by the lender to reduce the interest rate) be distinguished from origination points (charged for services rendered in originating the loan).
The cost of the mortgage, however, shouldn't be your only criterion. Have confidence that the company you select is reputable and will deliver the loan with the terms and costs they promised. If in the final hours of the transaction you determine that the lender has suddenly increased their profit margin at your expense, you won't have time to start again with a different lender. Ask family and friends for referrals. Interview prospective mortgage companies.
4. Not getting a written Good Faith Estimate of closing costsWithin three business days after the lender receives your loan application, you must receive a written statement of fees associated with the transaction. This is both the law and the best way to determine what you'll pay for your loan. Bring the Good Faith Estimate (GFE) with you when you sign loan documents. You should not be expected to pay fees which are substantially different from those contained in your GFE.5. Not getting a rate lock in writingWhen a mortgage company tells you they have locked your rate, get a written statement detailing the interest rate, the length of the rate lock, and program details.6. Using a dual agent - i.e., an agent who represents the buyer and the seller in the same transaction.Buyers and sellers have opposing interests. Sellers want to receive the highest price, buyers want to pay the lowest price. In the standard real estate transaction, the seller pays the real estate commission. When an agent represents both buyer and seller, the agent can tend to negotiate more vigorously on behalf of the seller. As a buyer, you're better off having an agent representing you exclusively. The only time you should consider a dual agent is when you get a price break. In that case, proceed cautiously and do your homework!7. Buying a home without professional inspectionsUnless you're buying a new home with warranties on most equipment, it's highly recommended that you get property, roof and termite inspections. This way you'll know what you are buying. Inspection reports are great negotiating tools when asking the seller to make needed repairs. When a professional inspector recommends that certain repairs be done, the seller is more likely to agree to do them.
If the seller agrees to make repairs, have your inspector verify that they are done prior to close of escrow. Do not assume that everything was done as promised.
8. Not shopping for home insurance until you are ready to closeStart shopping for insurance as soon as you have an accepted offer. Many buyers wait until the last minute to get insurance and do not have time to shop around.9. Signing documents without reading themWhenever possible, review in advance the documents you'll be signing. (Even though some specifics of your transaction may not be known early in the transaction, the documents you'll sign are standard forms and are available for review.) It's unlikely that you'll have sufficient time to read all the documents during the the closing appointment.10. Not allowing for delays in the transactionIn a perfect world, all real estate transactions are close on time. In the world we live in, transactions are often delayed a week or more. Suppose you asked your landlord to terminate your lease the day your purchase transaction was scheduled to close. A day or two before your scheduled closing date, you discover your transaction is delayed a week. In a perfect world, no one is inconvenienced and your landlord is willing to work with you. More likely, however, your landlord is inconvenienced and angry. Will you be thrown out? Will you have to find interim housing for a week or more? The eviction process takes a little time, so the Sheriff won't immediately remove you, but this type of stress-producing episode can be avoided. How? Terminate your lease one week after your real estate transaction is scheduled to close. That way, if there is a delay in closing your transaction, you have some leeway. This approach might cost a little more, then again, it might not. |
Information on buying, selling and investing in the real estate market. Decorating and design ideas for your home.
Thursday, December 4, 2014
Wednesday, November 12, 2014
Tuesday, August 12, 2014
Monday, August 11, 2014
Wednesday, June 4, 2014
Saturday, April 5, 2014
Sunday, March 30, 2014
5 Tips to Prepare Your Home for Sale
By: G. M. Filisko
Working to get your home ship-shape for showings will increase its value and shorten your sales time.
1. Have a home inspection
Be proactive by arranging for a pre-sale home inspection. For $250 to $400, an inspector will warn you about troubles that could make potential buyers balk. Make repairs before putting your home on the market. In some states, you may have to disclose what the inspection turns up.2. Get replacement estimates
If your home inspection uncovers necessary repairs you can’t fund, get estimates for the work. The figures will help buyers determine if they can afford the home and the repairs. Also hunt down warranties, guarantees, and user manuals for your furnace, washer and dryer, dishwasher, and any other items you expect to remain with the house.3. Make minor repairs
Not every repair costs a bundle. Fix as many small problems—sticky doors, torn screens, cracked caulking, dripping faucets—as you can. These may seem trivial, but they’ll give buyers the impression your house isn’t well maintained.4. Clear the clutter
Clear your kitchen counters of just about everything. Clean your closets by packing up little-used items like out-of-season clothes and old toys. Install closet organizers to maximize space. Put at least one-third of your furniture in storage, especially large pieces, such as entertainment centers and big televisions. Pack up family photos, knickknacks, and wall hangings to depersonalize your home. Store the items you’ve packed offsite or in boxes neatly arranged in your garage or basement.5. Do a thorough cleaning
A clean house makes a strong first impression that your home has been well cared for. If you can afford it, consider hiring a cleaning service.If not, wash windows and leave them open to air out your rooms. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Wash light fixtures and baseboards, mop and wax floors, and give your stove and refrigerator a thorough once-over.
Pay attention to details, too. Wash fingerprints from light switch plates, clean inside the cabinets, and polish doorknobs. Don’t forget to clean your garage, too
Tuesday, March 25, 2014
868 Shoshone Ave - Akron_OH_44305
868 Shoshone Ave - Akron_OH_44305
Beautifully remodeled 3 bedroom cape. Newer roof, siding, windows, hot water tank and furnace. Brand new carpeting, bath vanity, kitchen countertops and sink. Entire homes is freshly painted. Large private back yard and a one car garage. This home is move in ready and won't last at this price! Call today for your private showing. $75,0000
DEBORAH PERKINS
KELLER WILLIAMS
330-592-8785
Beautifully remodeled 3 bedroom cape. Newer roof, siding, windows, hot water tank and furnace. Brand new carpeting, bath vanity, kitchen countertops and sink. Entire homes is freshly painted. Large private back yard and a one car garage. This home is move in ready and won't last at this price! Call today for your private showing. $75,0000
DEBORAH PERKINS
KELLER WILLIAMS
330-592-8785
Thursday, February 27, 2014
Housing Trends eNewsletter- Deborah Perkins, SFR, SRES
Housing Trends eNewsletter- Deborah Perkins, SFR, SRES
Housing Trends eNewsletter is filled with U.S. Census Bureau key market indicators, consumer videos, blogs, a real estate glossary, mortgage rates and calculators, consumer articles and real estate tips.
Housing Trends eNewsletter is filled with U.S. Census Bureau key market indicators, consumer videos, blogs, a real estate glossary, mortgage rates and calculators, consumer articles and real estate tips.
Thursday, January 16, 2014
How much Home Can I Afford or How Much Mortgage Will Somebody Lend Me?
How much can you afford? A better question might be how much will a bank loan me?
I have mortgage loan officers who can answer that question for you. Contact me today for a personal referral. 330-592-8785
Thursday, January 2, 2014
The kids are raised and it's just the two of you now...
And let that fun start by considering your housing options.
How about a city loft or a rural ranch house? Maybe a condo or a cottage on a lake?
How about a city loft or a rural ranch house? Maybe a condo or a cottage on a lake?
Whatever your fantasy retirement residence looks like, I can help you find it.
Give me a call when you're ready to embark on the rest of your life.
Give me a call when you're ready to embark on the rest of your life.
330-592-8785
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