6 Things to Use When
Buying Your Next Home
When buying your next Home, You must be aware of all the things that could go wrong. Here is the copy from the HUD to assist you. ( Dept. of Housing and Urban Development).( HUD Booklet)
1.) Not having your finances in order. ( The Needs List to complete a Loan). It is a known fact that you can be charged hundreds if not thousands of EXTRA dollars on closing costs. How do you protect yourself? With 2 items! First, receive a Good Faith Estimate. Second, have them give you a Guarantee that is submitted into escrow.
2.) Not having an inspection done. In today’s market, you can be picky and ask for those things that a year earlier would have you lose the purchase. The market is becoming balanced and the repairs you thought would be done after escrow can now be done/paid through closing. Download the Special Report: Home Buyers Handbook.
3.) Not understanding Your Home Owners Association dues: Make sure you read through the CCR’s to ensure there are no lawsuits, debts that are needing to be paid, otherwise, you may find yourself having to pay. Here is a very helpful link: Homeowner Association Advice.
4.) Get “fully approved” with the bank. This is different than a Pre-approval. If a seller knows you are fully approved, they know you can close in 30 days or less. This Boosts bargaining power.
5.) Understanding what a “prepayment penalty” means. If you sell or refinance within the prepayment penalty time-frame, you will typically owe 6 months worth of interest. Work with your Loan Broker to find the best loan for your needs. Sometimes, there is no issues having a loan with prepayment especially if your considering to live in the property longer than the prepayment time. Many times, the interest rate will be better with a prepayment. Check around, however, for loans with no prepayment and make your final decision based on time and money.
6.) To Impound or Not to Impound? That is the question. If you can effectively maintain funds to pay your taxes at a 6 month interval, then from a financial perspective, it would be the best. However, if you are like most people, impounding can give you the peace of mind knowing you are paying your taxes and insurance on a monthly basis. Also, sometimes a bank will give you a better rate when you impound. Ask your friendly Mortgage Consultant Specialist.
