Review Your Finances With Your Real Estate Specialist

Costs can vary greatly from one real estate transaction to another. Discuss all possible expenses with your real estate specialist or lender prior to looking for a home to be able to anticipate the actual cost of your move. Get pre-approved for a mortgage – you’ll know exactly how much you can spend.

Consider alternates to a fixed rate 30-year mortgage

• 1-year adjustable mortgage
• Multi-year fixed/adjustable mortgage
• Balloon mortgage
• Variable rate mortgage
• FHA mortgage
• VA mortgage
• First-time homebuyers loans
• Renegotiable rate mortgage
• Lease Option
• Wrap-around mortgage
• Reverse annuity mortgage

Decide which mortgage is most comfortable for you. Ask your mortgage loan originator to assist you in making decisions about financing

 

Real Estate Offers To Purchase

An Offer to Purchase, or Sales Contract, is a legally binding contract. You are bound by exactly what the contract says. Have every section explained thoroughly before signing. If you have serious questions, consult an attorney. Make sure your Offer to Purchase considers and contains the following:

• Earnest money/good faith deposit (local practices vary, ask your agent)
• Property Disclosure Statement
• Copy of your pre-approval letter
• Provision for return of the Earnest Money under certain conditions
• Legal description of the property, address, lot number, city
• Price of the property
• Down payment
• Method of financing (Conventional loan, VA, FHA, Cash, etc.)
• Closing Date
• Occupancy Date (may be different than the closing date)
• List of what stays with the house
• Warranties in effect at time of purchase
• Proration of Taxes (unless local custom is otherwise)
• Inspections
  • Termite/wood destroying
  • Home Inspections
  • Lead Based Paint
  • Structural
  • Septic, Well, etc.
  • Any inspection which will assure you of condition
• Provision that the property be in same condition upon possession and broom clean
• Seller provides marketable, insurable title
• Any other special agreements

 

Mortgage Pre-approval...A Must

Being pre-approved for a mortgage prior to looking for a new home will provide strong benefits:

• You’ll know exactly how much you can spend on a home, saving you time and energy
• Your real estate professional can focus on your exact financial housing needs
• You’ll be positioned as a “cash” buyer, and sellers will know your offer is solid
• The seller may give you preference over non-approved buyers when more than one person is making an offer on the same home as you

Make certain a written copy of your loan pre-approval accompanies any offer. This is very important. It will relieve any doubt in the minds of the sellers or their agents as to your ability to purchase, saving you from stress and worry.