Buying a Home? 10 Financial Things You Shouldn’t Do
Buy, Finance | Aug 26, 2013 | By: Realtor.com Team |
You’ve decided to buy a house, and you need financing. Even if you have good credit, you should keep your finances shipshape until closing so that lenders won’t think twice.
Here are 10 things to avoid while you’re buying a home:
1. Don’t change your job before applying for a home loan.Also, now is not the right time to become self-employed or to quit your job. You want to show lenders stability, which means you’ll be less likely to default on the loan.
2. Don’t change banks. As with your employment, you want your banking history to show stability.
3. Don’t buy a car that you have to finance. Buying a vehicle or any other form of transportation through a loan increases your debt-to-income ratio, and loan officers don’t want to see that.
4. Don’t buy furniture on credit before buying your house. Charging big-ticket items increases your debt-to-income ratio. Save your money for the down payment.
5. Don’t be late on your credit card payments or charge excessively. You need a track record of responsibility that shows you can manage your money.
6. Don’t make large deposits into your bank accounts. Lenders like it when the money for your down payment has been sitting in your account for at least two months – what they call “seasoning” – so that the funds don’t just appear out of the ether.
7. Don’t lie on your loan application. Sounds simple, right? But don’t leave out any debts or liabilities or fudge your income. It’s fraud.
8. Don’t co-sign a loan for anyone. Even if you’re not making the payments on that loan, co-signing increases your debt-to-income ratio.
9. Don’t apply for new credit cards or prompt any other inquiries into your credit rating. Looking for new credit translates into higher risk for lenders. If your inquiries are related to your mortgage search, that usually doesn’t affect your credit score, because lenders assume that you’re rate-shopping. But opening credit accounts within a short period of time represents some risk, and your credit could take a hit. Inquiries are probably not a huge factor in calculating your ability to repay a loan, but why take a chance?
10. Don’t spend money you’ll need for closing costs. Part of the price of financing a loan is closing costs, and you’ll likely have some responsibility for paying them. Make sure you have enough for your share.
Diana Lundin wrote this article.
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45 Reasons to use a buyers agent
With so many resources available on the Internet now days, you may be thinking in buying a home without using the services of a qualified San Diego real estate agent. After reviewing these 50 services a top local buyer’s agent should perform for their clients, you may want to reconsider! Remember, agents don´t get paid until the home purchase is complete and in 99% of the cases this is a free service to the buyer so why not take advantage of this and have a professional in your corner protecting your interest.
It’s an agent’s job to do the best they can to help you through a smooth experience, save you money and achieve your goal of buying a home.
1. Analyze your real estate needs and determine housing criteria.
Vancouver Real Estate properties come in a wide-range of options and can be purchased under different types of ownership it’s important you fully understand the different styles of homes.
2. Research properties.
Just Vancouver Westside and Eastside alone have 39 different neighborhoods all with its own unique charm and style, your agent should be able to point out the cons and pros of each.
3. Send you listings that match your needs and ALERTS.
Depending on the ever changing Vancouver Real Estate market you should receive new listings on a daily bases.
4. Provide information pertaining to your move or relocation and short-term stay options.
Your agent should have up to date information on moving companies and other services and tools you can use.
5. Educate you about the home buying processes in Vancouver.
It’s all about giving you the right information and explaining how things are done in a simple but professional manner.
6. Provide information on market conditions, schools, communities, employment, and more.
Your Vancouver realtor should provide you with this and any other information you need.
7. Discuss your financing needs.
Your agent should talk to you about the cost associated with buying a home but also understand what you are comfortable in regards to payments.
8. Recommend qualified mortgage brokers.
Your Realtor should recommend a qualified top mortgage broker that can help you in getting the best interest rate possible.
9. Make appointments and show properties.
Schedule convenient appointments that fit your agenda but also make you aware of first-time property showings for new homes coming on the market. Vancouver Real Estate Market can be tricky it’s important that your agent can be flexible and get you into those first showings!
10. Provide timely and professional disclosure and research.
Every Vancouver realtor should research as much information as possible about the home you are planning to buy.
11. In car review: pros & cons of each property.
Your agent should be able to point out relevant and important information about homes and area with ease.
12. Point out “Hot Buttons” while showing.
Your Vancouver realtor should explain and point out important things to note about the home, building or any other relevant information what would be important to you.
13. Help with loan application questions.
Assist you with any questions you may have about you financing application
14. Follow up of loan application with your selected mortgage broker.
Have an established and good rapport with your mortgage broker, this is key to a successful transaction.
15. Help clean up your credit if needed.
Your Agent should be able to point you in the right direction to purchase a home, sometimes credit scores or mistakes can hurt the loan application your agent should be able to give you advise on how to better handle this part of the purchase.
16. Analyze purchasing timeline and needs once property is located
In Vancouver planning and timing is key with any purchase, your realtor should give you the best course of action for the property you are purchasing.
17. Free Comparative Market Analysis (CMA) of a property in order to make an educated offer
Study the market and give you relevant up to date information so you can make an informed decision. Knowledge is power!
18. Call listing agent to get sellers disclosure.
Make sure we get all necessary documents
19. Draft the offer and prepare paperwork.
Draft a professional offer with strategic clauses to protect you as the purchaser but also present an offer that would be compelling to be accepted.
20. Research tax records
Get full property tax information and review such details with you.
21. Get information on utilities
As your agent we will make sure you have an approximate idea of your utility expenses.
22. Explain all paperwork before signing.
Your realtor must make everything clear to you before signing anything.
23. Generate net sheet.
Understand what the final numbers look like.
24. Write offer, and provide verification to listing agent.
All documents are presented to the sellers agent
25. Submit contract and follow up.
You should always be informed of how things are going.
26. Negotiate contract until mutual agreement has been reached between Buyer and Seller.
Negotiate your offer with your interest in mind, my goal to get you the best price and conditions.
27. Review and explain final contract.
Once accepted go over terms again and move forward
28. Get full title information.
Once we have an accepted offer we will get full title information for the property and explain and review this document with you,
29. Schedule and attend the home inspection.
Once we are ready we will have a full home inspection, I will be at this inspection with you.
30. Schedule and attend an oil tank inspection if required ( always recommended)
We will go over the implications of possible oil tanks and how to deal with them , including an inspection or even removal.
31. Recommend insurance agents to you
Talk insurance and how to protect your investment.
32. Verify loan process has begun
Make sure financing is on the right track
33. Review home inspection findings with you
Go over the inspectors findings with you , from minor to the most important
34. Re-negotiate repairs if needed
If needed we can re-negotiate offer if we find problems that need major attention.
Attend bank appraisal on your behalf
36. Assist to meet finance deadline
Make sure financing has been obtained successfully
37. Monitor contingencies ? financing, home inspection, etc.
Make sure we have everything on track for successful subject removal.
38- Recommend Lawyers
Help you choose the best Lawyer for your registrations.
39. Check on homeowners insurance
Check your insurance options, it’s important that you understand what you get.
40. Follow up with the lender on all aspects of closing process
Make sure the money aspect is on track before closing
41. Verify that the title agency has all necessary documentations
Make sure the lawyer registers title on time and we have a successful registration.
42. Closing procedures:
Once we have a successful registration we must verify everything is as specified by the contract.
43. Perform a final walk-through
Make sure things are in order, we perform a final walk-through together.
44. Give you the keys to your new home!
We make sure we have all keys needed, front, back, mailbox, bedrooms etc.
45. Follow up after closing and insuring that everything is going fine in your new home!
As your San Diego real estate agent this final step is the most important to us! After you receive your keys we will be in touch with you on an ongoing bases making sure things are going fine with your home, we pride ourselves on service and repeat business and referrals so making sure you are happy and satisfied is the most important part of our job…
Are you looking for a trusted San Diego real estate agent to assist you in your home search? Please allow me to be of assistance. Just let me know what you’re looking for, and I’ll do my best to help!