Tips for Homebuyers

11/7/2003, 8:04 pm

Tips for Home Buyers

Unless you have a contract with a real estate agent who is acting as your agent, the real estate agent showing the house is working for the home owner. Don’t ever forget this! It’s your job to look after your interests, not the homeowner’s agent. He or she is taking care of the seller.

As tempting as it may be and even though you may qualify for a big loan, avoid buying more home than you can comfortably afford.

Even in the best of circumstances, buying a new home is stressful. It’s a major decision that will impact you in practical, financial and emotional ways. Pay attention to your stress level and realize the tension is normal.

You really should shop around! If you borrow $100,000 at 8% for 30 years and you will pay $264,155.25 over the term of the loan. But at 7% you will pay only $239,508.90 … a savings of $24,646.35! Shop around for the best rate!

Check up on yourself! Obtain a copy of your credit report 3 or 4 months before you apply for a mortgage. This will allow you time to close unused accounts and correct errors in your credit report.

Is your paperwork in order? Home Buyer’s Calculator Suite provides a Documentation Checklist that will guide you as you gather the documents you will likely need when applying for a loan. You’ll find the Documentation Checklist on the Forms menu and the main screen.

“Prequalified” is not “preapproved”. Preapproved is a commitment. When you have been preapproved by your lender you have a commitment from that lender to loan you X amount of money at Y% interest rate.

It’s a good idea to close unused credit accounts. Home Buyer’s Calculator Suite includes sample text you may use to close your unused credit accounts.

Before you grow too excited about a particular house, you should explore the entire neighborhood and surrounding area. You may find things nearby that you don’t wish to live near.

Having a thorough home inspection performed is a great idea. Who wants to learn about the old, rusty pipe in the attic by stepping on soggy carpet one morning?! And go through the house with your home inspector.

Get a thorough septic system checkup! In some areas the health inspector is required to check the septic tank only. Make sure he or she also checks the system’s field lines. A good septic tank is useless without good field lines.

Beauty is only skin deep. While appearance is important, remember that a good coat of paint can cover more than a good wall surface. Don’t be misled by appearance.

VA loans are guaranteed by the Department of Veterans Affairs and may be used by military veterans for single-family dwellings. If you are a United States military veteran, check out this benefit!

Protect yourself! Never sign a document you do not understand! Your signature is binding. Ask questions … any you wish! Do not allow yourself to be cornered, coerced, or intimidated into signing any paperwork you don’t want to sign.

These are just a few of the tips for home buyers available in Home Buyer’s Calculator Suite. Check it out of you’re in the market for a new home. It’s a collection of real estate calculators designed to let you “play with the numbers” related to your real estate transaction. A fully functional evaluation version is available from Wheatworks.com.

Share This Post ...