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Tip
#2: Make A Plan And Get Pre-Qualified
Carefully examine each
important decision and think it through. Develop a well organized
plan for making your Vallejo home purchase. Focus on the most important
factors. Create file folders on house hunting, Vallejo home financing,
service providers, etc. Get yourself pre qualified for a loan
so you can determine the amount of Vallejo home you can afford. Getting
pre qualified also increases your chances of closing a deal,
The seller is more likely to accept an already funded offer than one
from a Vallejo home buyer who still needs to get a loan. Lenders
usually employ the 28% formula (your monthly mortgage must not exceed
28% of your monthly income) in approving your loan. Plan your
actions and get pre qualified, this reduces the chance of panic situation
and allows you seize opportunity when it is presented. A thorough
plan will save both time and money!
Tip
#3: Value, Value, Value
The days of 10-30% annual appreciation
still exist. Home buyers in the 1990's benefited tremendously from
what seemed like ever appreciating home prices, now we are seeing growth
along the same lines. Nowadays, you're looking at stable growth while
guarding against the possibilities of falling prices, low interest 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.
Tip
#4: Create A Top 10 List of Amenities
When shopping for a home, list
the features (fireplace, fenced-in yard, new appliances, etc.)
that are most important to you in deciding on which home to purchase.
Establishing "your criteria" early on will save time shopping for inappropriate
Vallejo homes and may keep you from buying a Vallejo home on a whim
-- for example, because of a circular stairwell -- that doesn't meet
your fundamental requirements. 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.
Tip
#5: Fixed vs. Adjustable Rate Mortgages
Which type of loan fits your
particular needs? Are you a first home buyer or are you moving to
a larger home? If you're planning to own for a short time, an ARM
may be the best type of loan. If you're shopping for your dream home
or you plan to raise a family, a fixed rate mortgage may be more suitable
for you. If you choose an ARM, the index should be based on the Cost
of Funds Index if rates are increasing, and Treasury Bills
if they are decreasing. The COFI's are less volatile over time
than T-Bills. Find out what the teaser rate is and what the real
rate would be.
Whichever loan you choose,
make sure that you scrutinize all the closing costs. If you are
required to have a mortgage escrow account and private mortgage insurance,
make sure you understand the terms and cancellation procedures. Also,
make sure there are no prepayment penalties so that you can utilize
an accelerated mortgage plan. A good mortgage reduction plan can save
you tens of thousands in interest costs, and shorten your loan term,
with only small extra principal payments. If you experience negative
changes in your job, health, or marital status, you can revert to the
standard payments in your mortgage contract.
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Tip
#6: Sign A Contract That Protects You
Make sure that the contract
you put on a house allows you to arrange financing, inspect the home
and negotiate any problems that you uncover. Ensuring that the contract
you sign will minimize potential legal battles will let you swim in
your new pool with your family and neighbors instead of with the sharks.
Tip
#7: Put Yourself In The Seller's Shoes
You are about to make one of the
most important decisions that will affect both your life and the life
of the seller. If you take time to understand the reasons the seller
bought the Vallejo home, their reasons for selling, and the Vallejo
home improvements they have or have not made, you'll be in a better
position to evaluate the home and negotiate a better deal. In the
end, the home buying process excludes the professionals and comes down
to the individuals buying and selling the home. A closer look at the
seller may help you in deciding whether and for how much to buy a particular
home.
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.
Create a chart that lists different types of loans, fees, and at least
five mortgage providers (including a mortgage broker).
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 Vallejo 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.
Tip#10:
Peace of Mind: Home Protection Plans
To protect both yourself as a
buyer, as well as the seller, it is a good idea to purchase a home protection
plan. What exactly is it? A home warranty,
or home protection plan, is a service contract, normally for one
year, which protects homeowners against the cost of unexpected repairs
or replacement on their major systems and appliances that break down
due to normal wear and tear. A negotiable contract between
the buyers and sellers which do not overlap or replace homeowner's insurance
policy, this type of warranty can save the new homeowner lots of headaches,
as well as put seller's fears to rest. The warranty covers mechanical
breakdowns, while insurance typically repairs the related damage, for
example: if a hot water heater burst and destroyed a wall in your Vallejo
home, the warranty would repair the water heater and your insurance
would pay to fix the wall.
Information provided by The American Homeowners
Association, Copyright© 2004
Vallejo Real Estate services for buying and selling offered by the Realtor
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