Buying a house can be a daunting task, even for someone who has owned several homes. My husband and I recently purchased our first home together, and it was hard to find good advice that we truly found useful. We had to learn a lot on our own, but at least now we feel comfortable and knowledgeable about the whole process. Here are some helpful hints we picked up along the way.
A friend in another state asked me the other day, “I am about to shop for a home loan, could you give me some tips on mistakes I need to avoid?” Whether you are purchasing or refinancing a home, here are the tips I recommended to her, and to you all as well.
As in every industry, the business of home loans is beset by many myths that borrowers cling to as reality that can sometimes be damaging to them. Lets look at a few of those myths, and the truths behind them.
You have decided to put your home up for sale, and look for a new home better suited to fit your growing family. You flip open the Yellow Pages, to find hundreds of real estate agents, all seemingly the same. How do you whittle that number down to find someone who has all that you need to sell and buy real estate?
Though not quite as contemptible as obscene four-letter words, the term “creative financing” comes close. Those two words acquired a stigma over the decades. It’s the rare advisor that fails to caution homebuyers about the dangers of a risky loan. Unfortunately, after the utterance of the warning, the counselors are remarkably imprecise as to exactly what defines a risky loan. Is a home bought with no down payment and a loan equal to 100% of the purchase price a hazardous way to buy? You’d certainly think so from the articles I read. And what about interest-only loans, where no principal payments are made during the early years? The suggestion normally conjures up predictions of impending disaster.
In a buyer’s market, how do you make your home more attractive, how do you make it stand out amongst the herd? One way is to add renovations to your home that set it apart from your neighbors’ homes.
It has been said that buying a home can be one of the most stressful experiences one will go through. It’s right up there with career change, divorce or illness. Fact is, you can reduce your stress while going through the home buying process with a few simple strategies.
Real estate agents like to make it sound as if their fees are set in stone, but in a competitive market, they should be willing to negotiate their fees or you should take your deal elsewhere. All you have to do is ask. Keep in mind that real estate agents put a lot of time and money into selling your home, or helping you buy another home, and are entitled to make some income from the deal.