Friday, September 5, 2014

Want an Easy Home Buying Experience? Read This!

Now is the time to act on purchasing your home. The housing market climate has drastically improved and builder confidence is at the highest level it has been in nearly a decade.  Recent mortgage and inventory trends are allowing you, as a first time buyer or a repeat buyer, to make your move.  But are you ready?  Purchasing a home is one of the biggest financial investments that is made in a lifetime. Although you might be ready to buy your home, there are a few ways to simplify the purchasing process, making it smooth sailing for you.  Here are four key ways to prepare for your new home purchase:

  1.  Credit: When purchasing a home, make sure to check up on your credit. The higher your credit score is, the more likely you’ll be able to finance your purchase with lower interest rates. Credit is influenced by many things, so it’s imperative to be mindful of it.  Do not purchase anything from a car, furniture, or take on any debt before, during or after a contract.  Sit tight and make not changes to your debt or income until after your closing!
  2. Get pre-approved: Before home shopping begins, get pre-approved for a home loan. You’ll know how much you’re able to comfortably spend and what your interest and financial scenario will be like. Knowing your monetary situation will help you target a price range for your home purchase.  Dick Gaylord, past president of the National Association of Realtors says that the preapproval process is much more extensive than it was a few years ago.  Be prepared, be involved.
  3.  Hire a real estate professional: An experienced real estate agent can make the home buying process efficient and effortless. Real estate professionals have access to a network of agents and sellers, mortgage and title agencies. That network will of other experts in the marketplace will assist you in the home buying process.  Agents have access to properties, are trained to use real estate specific websites and outlets to help you find the perfect property which meets your very specific home criteria. Real estate experts are proficient with geography, terms and industry jargon, inspections, appraisals, and HUD statements. These are incredibly useful, especially while closing on a house.
  4.  Closing the transaction: Getting to the closing table is the most important part of home buying, and there are several components of the process. First, your lender will order a home appraisal to ensure that the property is being sold and purchased at a fair market value.  This value is determined by comparable sales and an evaluation performed by the appraiser.  Next, a title search will then be performed to examine any issues that could affect the property’s title. Finally, the seller will sign the deed,  a legal component of the real estate transaction and the buyer will sign the new mortgage. The closing process is the most difficult. Real estate agents and title agencies have had extensive training on how to close a real estate transaction, and may be able to search out any hidden costs to ensure your purchase is fair.

Home buying is one of the most exciting milestones in life. Make it an enjoyable experience with SI Real Estate.  Never a cost to a buyer, only benefits and savings.