Twila E. Palmer's Blog
Ready to submit a home loan application? Ultimately, there are many factors to consider before you finalize your submission, and these include:
1. Your Outstanding Debt
If you have outstanding student loan, car or other debt, you should try to pay it off as quickly as possible. By doing so, you can boost your chances of securing a home loan that matches or exceeds your expectations.
Take a look at your outstanding debt and make a plan to pay down your bills. With a plan in place, you may be able to reduce or eliminate outstanding debt before you complete your home loan application.
2. Your Credit Score
A strong credit score will help a homebuyer get a terrific home loan. Conversely, an inferior credit score is unlikely to do you any favors after you submit a home loan application.
Learn about your credit score before you finalize your home loan application. Then, you can allocate the necessary time and resources to boost your credit score or correct any errors on your credit report.
You are eligible for one free copy of your credit report from each of the three major credit reporting bureaus (Equifax, Experian and TransUnion). Request a copy of your credit report, and you can understand where your credit score currently stands.
Also, if you find any errors on your credit report, contact the credit reporting bureau that provided the report immediately. This will allow you to correct any credit report mistakes and reduce the risk that these errors could impact your ability to secure a home loan.
3. Your Savings
It never hurts to save money, especially if you'd like to purchase a home in the near future. If you start saving today, you may be better equipped than other homebuyers to have the necessary finances in place for a down payment on a house.
In most instances, lenders will require you to have at least a small portion of the purchase price of a home available for a down payment. If you have thousands of dollars available for a down payment, you may be able to boost your chances of getting a "Yes" from a lender after you submit your home loan application.
Getting a home loan may seem like a long, arduous process. Fortunately, many lenders are available to help you secure a great home loan.
Meet with several lenders as you explore all of your home loan options. That way, you can learn about a broad array of home loan options and choose a home loan that matches your finances perfectly.
After you secure a home loan, you'll be able to move one step closer to securing your dream residence. Of course, if you need assistance during the homebuying journey, it never hurts to reach out to a real estate agent as well.
A real estate agent will do everything possible to help you acquire a top-notch residence at an affordable price. Thus, if you employ a real estate agent, you may be able to enjoy a fast, seamless homebuying experience.
When you think of buying or selling a house, the first thing that comes to mind may not be the legal aspects associated with the process. You may want to reconsider this rather boring part of the process as an important one. Hiring a lawyer can help both buyers and sellers to get through many hurdles that buying a home can present.
There will be many negotiations and a lot of back and forth throughout the process of buying a home. Everything that’s involved with buying a home needs a contract for it to be legally binding. A real estate attorney will negotiate on your behalf and be sure that the contracts adhere to all state and local laws. The lawyer will also help you to address issues that may affect the future of the property such as botched inspections, liens against the home, and other items that could affect you as the home buyer.
Real estate attorneys will perform what is called a title search. This allows them to see if there are any outstanding liens or judgements against the house. This title search will also make sure that the seller has the right to actually sell the property that’s being sold. An attorney can do all of this much quicker than the average person since they have working relationships with title companies.
Transfer Of Property
If a property is being transferred through a corporation, trust, or partnership, things can get complicated. It’s good to have an attorney who is used to working with these complex situations and understands the legal boundaries within the state or municipality that the property is in.
If You Choose Not To Have A Real Estate Attorney
Many times, a real estate attorney isn’t required to buy a property. It is advisable to have one, however. Without an attorney you increase your chances of problems arising in the future. You run the risk of:
- Being sued for failure to disclose information
- An improper property transaction takes place
- You could miss relevant facts about the property
- Failing to file the correct documents at both the state an local levels
- Deeds are not transferred
- Building permits weren’t correctly filed
Having a real estate lawyer on your side is important due to the complex nature of property transactions. While some states require that an attorney be present throughout your property transaction, many states do not have this stipulation. You are smart to hire a competent real estate attorney to protect your own interests as either a buyer or a seller.
If this is your first time buying a home, you might be worried that you aren’t asking enough questions. Or maybe you’re concerned you’re not asking the right questions--the things that matter the most when making a financial decision as important and life-changing as buying a home.
While everyone’s situation is unique when buying a home, there are some questions that all buyers could benefit from asking. These questions will help you learn more about the home, how competitive the house is, and how much work you’ll need to put into it.
Since time is usually of the essence for people buying a home, it makes sense to ask questions early on so that you don’t waste too much time exploring an option that isn’t ideal for your situation.
In this article, we’re going to give you 5 important questions to ask when you talk to a seller and their agent so that you can be prepared to make the best decision for you or your family.
1. How flexible is the asking price?
While few sellers or agents will outright tell you if they’d accept a lower offer, it’s still a good idea to ask this question, as it will open up a conversation about the seller’s feelings toward the home and whether they’re pricing high with the hopes of receiving slightly lower offers.
2. How many offers has the home received?
It may seem counterintuitive, but most agents and sellers will be quite happy to tell you if they’ve received other offers. They know that once you know the current offer you’ll have to either come up with a higher offer or move on. It’s a win-win for you and the seller, as it equips both of you with information you need to make the best choice.
3. Why are the sellers moving away?
This question can be personal, so if you receive an answer that suggests it’s a family matter, don’t press for too many details. However, some sellers and agents will let you know exactly why the house is for sale. From this simple question, you can learn the seller’s timeline for making the sale, details about the schools or neighborhoods, and any other reason that might drive someone to move out of the neighborhood.
4. Are there any problems with the house that you know of?
Although you’ll have an inspection contingency in your contract if you do decide to make an offer on the home, it’s better to know if there are any issues with the home before going through the bidding process.
Most sellers understand this and will be upfront about any problems with the home, including repairs that need to be made now or will need to be made soon after you move in.
5. What is the average cost of utilities?
Buying a home comes with a lot of added costs and fees. However, many people forget about the changes in the cost of utilities that comes with buying a home--especially if you’re moving from an apartment where some utilities may have been included.
The seller will be able to give you a good estimate on the cost of electricity, garbage removal, internet, heat, and more.
A home showing will help you gain the insights you need to make an informed decision about a house purchase. At the same time, you may have many concerns about whether a residence is right for you, even after you complete a home showing.
Ultimately, there are many questions to consider after you finish a house showing to ensure you can make the right choice about a residence, and these include:
1. How did I feel as I walked through a home?
Oftentimes, homebuyers try to envision what life may be like if they purchase a residence. As these buyers walk through a house during a showing, it sometimes can be simple to imagine the possibilities if you buy this residence. On the other hand, it may be tough to envision a future in a particular home if a house fails to match or exceed your expectations.
Think about how you felt as you explored each room in a house during a showing. If you left a home showing with a good feeling about a residence, it may be beneficial to submit an offer or set up a follow-up showing. Conversely, if a home showing left you feeling uncomfortable with a residence, you may want to continue your search for your dream house.
2. Are there any major issues with a home?
Generally, it is a good idea to ask lots of questions about a house during a showing. This will enable you to learn about the condition of a home and determine whether major repairs are necessary.
A home in need of significant upgrades offers opportunities for homebuyers who are looking for a "fixer-upper" house. In fact, if you submit an offer on a fixer-upper home, you may be able to perform assorted repairs to enhance a house's condition and value.
Comparatively, if you are unwilling to perform substantial home upgrades, there is no need to worry. You can always forego submitting an offer on a house after a showing, and by doing so, continue your pursuit for your ideal home.
3. Is a home a viable long-term investment?
As a homebuyer, it is important to find a house that will serve you well both now and in the future. Because if you fail to do so, you risk purchasing a house that will only decline in value in the years to come.
If you feel that a home is a viable long-term investment following a showing, you may want to submit an offer to acquire this residence. Then, if a seller accepts your offer, you can conduct a home inspection and move forward in the homebuying process.
Lastly, as you consider what to do after a home showing, you may want to collaborate with a real estate agent. This housing market professional can help you evaluate the pros and cons of submitting an offer on a particular residence. Perhaps best of all, a real estate agent will offer expert tips to ensure you can find your dream residence in no time at all.
A home showing is a key part of the property buying journey. As such, it helps to plan ahead for a house showing as much as possible. Because if you enter a home showing with a plan in place, you can use this event to help you determine whether a residence is right for you.
Now, let's take a look at three tips to help you get ready for a home showing.
1. Make a List of Questions
A home showing is a valuable learning experience, particularly for a buyer who crafts a list of questions ahead of time. And if a buyer has a list of home showing questions in hand, he or she can gain the necessary insights to make an informed decision about a residence.
Before you make a list of home showing questions, you may want to review a house listing. Then, consider any information that you want to know about a house that is not included in the listing and craft your home showing questions accordingly.
Also, it is important to remember that there is no such thing as a "bad" question to ask during a house showing. If you ask lots of questions during a showing, you can learn about a residence and decide whether to submit an offer to purchase this home.
2. Establish Realistic Expectations
There is no telling how a home showing may turn out. Thus, it is important to plan for the best- and worst-case scenarios.
In the best-case scenario, a buyer will discover his or her ideal residence during a showing. On the other hand, in the worst-case scenario, a buyer will find that a home fails to meet his or her expectations.
Oftentimes, a buyer will need to attend several home showings before he or she discovers the right residence. And if you fail to find your dream residence during your first home showing, there is no harm in continuing your house search and attending other showings in the future.
3. Work with a Real Estate Agent
A real estate agent is a homebuying expert, and he or she is happy to help you prepare for a house showing. First, a real estate agent will offer lots of insights into a home and respond to any of your concerns and questions. He or she next will attend a showing with you. After a showing is complete, a real estate agent will meet with you and help you determine the best course of action.
In addition, when you discover your dream home, a real estate agent will do everything possible to ensure you can acquire this residence without delay. A real estate agent will help you submit a competitive offer to purchase your dream home. Plus, he or she will negotiate with a seller's agent on your behalf to help you get the best price on this residence.
Ready to attend a home showing? Use the aforementioned tips, and you can plan for a showing and boost the likelihood of a successful home search.