Top 10 Tips For Buying Real Estate!! #9

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 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.

Your professional real estate agent will have a list of approved vendors they work with on a day to day basis. My suggestion would be to ask them for a referral, and also ask friends and family for a referral. Remember, buying a home is a huge decision and a large investment, probably the biggest you'll make in your life. So, just as I say no to using your uncle Joe for a mortgage, or as your attorney, the same rings true here. Use an objective party, someone who is licensed, has plenty of experience, comes recommended and who charges rates in accordance with what others currently charge in your market.

You will receive a written report of your inspection, sometimes on the spot if your inspector has the capability and you will then go over this report with your attorney to address any outstanding issues.

Till next tip!!

Top 10 Tips For Buying Real Estate! #8

Tip #8: Develop A Mortgage Shopping Chart



If you've been reading this series from day one, you'll remember that we covered this on day one. To read the full post visit the first day's post here



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).

Top 10 Tips For Buying Real Estate - #4

Continuing on with my 10 Tips for succesful home buying series.. Here's today's - this one should be easy.

Tip #4: Create A Top 10 List Of Amenities

When shopping for a home, list the features (wood burning fireplace, private yard, new appliances, etc.) that are most important to you in deciding on which home to buy. Establishing "your criteria" early on will save time shopping for inappropriate homes and may keep you from buying a home on a whim. 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. Remember, it's nearly impossible to find a home that has all of your items on your wish list, unless of course you're building a custom home. Know that there will come a time where you'll need a little give and take. Some buyers will sacrifice location for more space and nicer features, others will sacrifice space for location and proximity to shopping or transportation. Until that time comes, starting with this list, and sharing with your enlisted professional realtor, will give she or he a good idea of what you're looking for and your desired lifestyle.

Till next time!

Top 10 tips for buying Hoboken real estate - #3

Continuing with our successful home buying tips!

Tip #3: Value, Value, Value

The days of 10-30% annual appreciation have passed. Home buyers in the 1970's and even 90's to early 2000, benefited tremendously from what seemed like ever appreciating home prices. Nowadays, we will most likely be looking at slow steady growth while guarding against the possibilities of falling prices, skyrocketing ARM 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.

Many times I'll show a buyer two similar units one is a higher price - the one that has the granite counters, and one has a lower price, the one competing with the granite counters. Sometimes buyers will see this and think, this place needs a lot of work! I'd rather try and get the one that's already renovated.. In a softer market this might not always be the best approach. If there is a $20,000 price difference and it would only cost you $8000 to renovate the kitchen then which is a better value? Plus remember, the unit that needs to upgrade the kitchen knows buyers want a newer more modern look and should therefore be a little more motivated on their price. Then, if you successfully negotiate a fair purchase price, your value instantly grows.

More on negotiation in the future..

Top 10 tips for buying real estate! #2

Hello ladies! I am back from a much needed weekend with my family and future in laws and I apologize for not bringing my laptop with me to give you a tip for Saturday and Sunday! However I'm hoping you had a nice weekend as well, and although today is holiday - it's back to business for me!

Happy Columbus Day!

Tip #2: Make A Plan And Get Pre-Qualified
Every important decision needs to be clearly thought out. From investing in a pair of expensive shoes to starting a new job or career and buying a home!

Developing a home buying plan can help you focus on the important factors and organize the entire process. It's a great idea to purchase a binder with sections on house hunting, home financing, service providers, etc. (More on service providers in the future).

Loan pre-qualifying helps you determine the home price you can afford and presents you as a genuine prospect to the seller. In most cases today, you will not be able to submit an offer without a prequalification letter, and some real estate agents require that you bring your letter during your first buyer consultation.

A lender typically uses the 28% formula (your monthly mortgage can't exceed 28% of your monthly income) in approving your loan. Planning your actions and getting pre-qualified will keep you out of the panic mode and allow you to take advantage of opportunities. Plus you will be able to make an informed decision instead of acting on pure emotion. Buying a home can be exciting! Especially if you see a place that has everything you want..

A thorough plan will save both time and money!

Remember, a prequalification letter does not commit you to working with that particular lender or broker. And the same is true the other way around. Just because a bank or broker provided you with a prequalification letter it does not guarantee that they will approve you for that amount or even approve you at all. Many things can change while you're shopping for a home including lending restrictions and not to mention your credit! It's important that during the process you keep tabs on your spending and on your bills. Make sure to pay everything on time, and hold off on major purchases until after you've bought your home.

Till tomorrow!

Top 10 tips for buying real estate: #1

Yesterday I posted the first of this 10 day series and I started with number 8 'Develop a Mortgage Shopping Cart' because I felt that it was a great place to begin.

So we're going back to basics and starting with number one:

Tip #1: Research Is The Key To Discovery
Home sellers won't call you with an offer to buy a maintenance-free home with a wonderful mortgage. You have to find the gems yourself! Only by reading available materials, talking to friends and experts, doing some research online and working with a real estate agent you trust, will you end up with your American dream.

If you're moving somewhere and transportation is important to you, or schools, make sure that you do your research, and not just by searching online - although the Internet is an incredible tool - but by asking neighbors and residents of the town. Walk around and shop or eat where you might end up living. You'd be surprised how many people are willing to talk to you and offer to share their personal experiences.

Make it a point to walk or drive around the area that you're looking at during the day and the evening. If commute time is a factor then give it a test run or two so you can feel it out for yourself. You'll learn a lot!!

Till tomorrow's tip!

Top 10 Tips for buying real estate! Tip #8

I'll be posting a series of top ten tips for successfully buying real estate in the next ten days with one new tip each day. So you'll want to check back each day or follow my blog so you don't miss any!!

I want to start with number 8 today because many of you are educated and know that before you start looking at homes you have to arm yourself with a prequalifcation letter. The buyers I've been working with lately have started to do their homework by shopping rates and loan programs plus looking into rate locks with rates as good as they are now.

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 or adjustable rate mortgages. Create a chart that lists different types of loans, fees, and at least five mortgage providers (including a mortgage broker). In many cases, a mortgage broker will be able to secure for you the best loan.

If you would like a referral to a reputable mortgage lender please don't hesitate to reach me! Till tomorrow for the next tip..