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Tip #2: Make A Plan And Get Pre-Qualified
Carefully examine each
important decision and think
it through. Develop a well organized plan for making your Cherry Hills Village
home purchase. Focus on the most important factors. Create file folders
on house hunting, Cherry Hills Village home financing, service providers, etc.
Get yourself pre qualified for a loan so you can determine the
amount of Cherry Hills Village home you can afford. Getting pre qualified also
increases your chances of closing a deal, The seller is more
likely to accept an already funded offer than one from a Cherry Hills Village home
buyer who still needs to get a loan. Lenders usually employ the 28%
formula (your monthly mortgage must not exceed 28% of your monthly
income) in approving your loan. Plan your actions and get pre
qualified, this reduces the chance of panic situation and allows you
seize opportunity when it is presented.
A thorough plan will save both time and money!
Tip #3: Value, Value, Value
The days of 10-30%
annual appreciation still exist. Home buyers in the 1990's benefited
tremendously from what seemed like ever appreciating home prices, now
we are seeing growth along the same lines. Nowadays, you're looking
at stable growth while guarding against the possibilities of falling
prices, low interest 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
purchase. Establishing "your criteria" early on will save time shopping
for inappropriate Cherry Hills Village homes and may keep you from buying a Cherry Hills Village
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? Are you a first home buyer or are you
moving to a larger home? If you're planning to own for a short time,
an ARM may be the best type of loan. If you're shopping for your
dream home or you plan to raise a family, a fixed rate mortgage may
be more suitable for you. 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. Find out what the teaser
rate is 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.
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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 Cherry Hills Village home, their reasons for selling, and
the Cherry Hills Village 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 Cherry Hills Village
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, as 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 Cherry Hills Village
home, the warranty would repair the water heater and your insurance
would pay to fix the wall.
Information provided by The American Homeowners
Association, Copyright© 2004
Cherry Hills Village Real Estate services for buying and selling offered by the Realtor
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