Home Purchase Tips & Advice
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Auctions: The Latest Trend in Home Buying
So you want to buy a home?
We share a few good tips before you doBefore you buy a house, call around and see if a local community agency offers a course on home ownership. If so, take it; you won't regret it.
Don't allow yourself to be pressured by the seller or the real estate agent. Take your time. Make a list of the positive reasons for buying the house. Make a list of the negative reasons for buying the house. This is one of the most important decisions you will ever make. Don't make it too quickly.
An appraisal report tells you the market value of a property. Get your own certified appraiser to prepare an appraisal report for you. You should be able to get an appraisal report for about $175 and it's worth it. Don't simply accept the appraisal provided the lender who gives you a mortgage.
If you can't afford an appraisal, go to the County Clerk's Office and research what homes have been selling for in the neighborhood. Or call a real estate agent and ask what homes have been selling for in the neighborhood. In addition, your local librarian may be able to assist you in searching real estates values on the Internet. Don't assume that the asking price is a good price.
Get a home inspection. Find out ahead of time if the home needs repairs. Don't find out that your roof leaks only after you have moved into the house. A home inspection may cost $225 but it's worth it.
There are many sources online to help you, click here:
If you can't afford a home inspection, find a friend who has some construction knowledge to tour the house with you.
Don't simply accept the representations of the seller or real estate agent. They make money only if the home is sold. Do your own homework. No one will protect your interests but you.
If the seller is holding the mortgage, make sure the interest rate is reasonable compared to the rate that the larger banks are charging.
Don't be afraid to ask questions. Buying a home isn't an every day experience. Bring a friend along.
Use an attorney.
Today's Featured Home Purchase Article
Home Values and Loan Terms Play Role in Choosing a Mortgage Loan
By Karen LawsonHome Worth Columnist
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When shopping for a home
loan, consider the role of home value trends and mortgage terms. Understanding
how mortgage loan terms can impact home values can be very useful in selecting
a mortgage that matches your lifestyle and future plans. For homeowners who plan
to sell in a couple of years, an option adjustable rate mortgage (ARM) with a
low initial monthly payment and no prepayment penalty could be a great choice.
However, this type of financing may not work for those buying a home that they
plan to keep for the foreseeable future. The reason for this is that option ARM
loans with very low initial payments add deferred interest amounts to the
mortgage balance. This means the amount owed can increase rather than
decrease. In this scenario, if home
values significantly decline, the mortgage balance may exceed home value. This
situation is called "negative equity," and means that selling a home
at market value will not pay off the mortgage loan(s) against it.
Upside down Mortgage
Loans and Home Worth
Homeowners who find that their mortgage balances exceed
their home worth should contact their mortgage lenders immediately. Mortgage
lenders do not profit from foreclosure. They typically offer opportunities for
refinancing or rewriting existing mortgage terms to help eliminate negative
equity. The key to these programs is establishing the existence of negative
equity by getting an estimate of home value from a local real estate
professional. If your lender agrees to provide a loan workout program, it may
require an appraisal to determine home worth. You may be asked to pay for
estimates of home worth and/or pay a fee for changing the terms of your loan.
Generally, the cost of modifying mortgage terms is less than conventional
refinancing.
Mortgage Companies
and Homeowners Working Together
Negative equity situations do not serve the interests of
homeowners or their mortgage lenders. Rather than risk the consequences of a
foreclosure, homeowners can often keep their homes while getting better loan
terms if they work with their lenders. Loan workout programs may require a cash
contribution from homeowners to offset the cost of rewriting and recording
mortgage documents, but this can be worth it when compared to the cost of a
lower credit rating and foreclosure. Homeowners who are concerned about
negative equity should contact their mortgage companies to discuss available
options for stabilizing payments and eliminating negative amortization features
of their mortgage loans.
About the Author
Karen Lawson is a
freelance writer with more than fifteen years of experience in mortgage
banking. She holds BA and MA degrees in English from the
About the Author
Karen Lawson is a freelance writer with extensive experience in mortgage banking. She holds BA and MA degrees in English from the University of Nevada, Reno.
Home Purchase Library
- Buying a New Home in a Buyer's Market
- What's New? Home-Repo Bus Tours!
- Auctions: The Latest Trend in Home Buying
- They Were Wrong When They Said Don't Buy a Home
- Homebuyers Need to Check Builder's Incentives
- Today is a Great Time for Buying a New Home
- Is Now the Perfect Time for Home Buying?
- Who Benefits From a Home Warranty Protection Plan?
- Winter Advantages for Home Buying and Home Selling
- Six Reasons to Get Pre-Qualified Before Buying Your New Home
- Owning a Home Equals Big Tax Savings
- Home Warranties: Never Buy a House Without One
- Identity Theft Prevention When Buying a House
Helpful Reading
Before you get that appraisal of your home value, make some additions, repairs or some improvements.
We suggest some books
Visit Our Featured Home Value Resources
What is my home worth is something we all ask before selling or getting ready to refinance a mortgage. If you are here simply to find out the current house values of your property, then be sure to visit this page that will give you the current values in your neighborhood. If you're not ready to search for a comparative market analysis or look for house appraisals in person, you can receive a free home value report online by filling out our simple online form that will give you an estimate on the worth of your property.We'll try to provide as much helpful info as we can before you decide to refinance your house, with so many choices it can be hard. Many home owners search online for information to refinance a mortgage but don't know where to start, or who to ask. We can also provide you with a way to refinance your mortgage online using our secure form that will help you get started.
If you want to increase the value for your property with home improvement that you can do yourself, we'll provide hints, tips and some suggested reading to help you increase house values before you sell. We have quite a few excellent books for sale on the subject, in addition to other resources to help you get started on home repairs or improvements.
Once your have sold your house you may be in the market to find homes for sale in your area. Well, what if you are a first time buyer and are looking for help? Or maybe you have bought a home before, but want to do it right this time. We'll do our best to set you on the right path with links and up to date information for the modern home buyer.
If you already know you want to sell, you're going to need to find a real estate agent to sell your home. Feel free to use our resources and find a qualified agent who is eager to sell your house at the highest possible price and shares the same values as yourself. We give you access to a large database of qualified real estate agents who want to help you sell.