There are so many challenging aspects about buying a home: searching, financing, and buying a home, and more! It can really drive you crazy! Knowing all of these aspects is critical.
Real estate agents would do well to reach out to former clients during the holiday season or sell a purchase date. Hearing your voice again from you will trigger positive memories of the real estate transaction that occurred. At the end of your message, remind them that you work on a referral basis and would consider it a compliment if they would recommend you to their friends.
If you have or plan to have a big family, you should look at homes that will have enough room for your family. You will be sure that your house is safe if the previous tenants had children.
If you are planning to move to another area, do some research on the internet about different communities and neighborhoods. You can discover a good deal of information about even the smallest town. Consider the population, population and unemployment rate of your desired location before purchasing a house there so you ensure that you will love where you live.
Homes that need multiple improvements or updates are often sold for cheaper than other homes. This can be a money-saver in purchasing the home, and use it to improve the house in your own time. A little fix up work can transform that diamond in the rough into the house of your dreams.
If you submit an offer for the home you love and the seller does not accept it, do not completely give up on the fact that they won’t find a method of making the purchase price affordable for you. They might offer to cover closing costs or make some repairs prior to you moving in.
Even if you currently do not have children, if you are planning on living in the home for an extended period of time and the possibility of starting a family during those years cannot be ruled out, it is a good idea to find out if the area schools are of high quality.
A lot of Realtors have ready made checklists of purchasing a home. The checklist can help you organize everything is taken care of when it needs to be.
Buyers will often calculate the final closing costs by combining the amount for the down payment, any points that they pay to the lender, and obviously the down payment. In many cases, closing costs have extra items like improvement bonds, school taxes, and anything else that is specific to that area.
It really is a good time to get invested in real estate.Property values at this time are low due to a recent fall in the housing market. The housing market will rebound, and your investment will be very profitable.
Consider these tips a starting point for you to understand how to buy a new home. Be sure to apply these insights to your home hunt so that you can navigate your trail without falling into the pits that a lot of other new home owners do.
With the number and size of government bailouts increasing and with no end in sight, one has to wonder how will it end? Will the government ever get a handle on the deepening financial crisis?
While our political leaders seem to be running around plugging the leaking financial dike one hole at a time, many of us in real estate have been wondering why they don’t simply attack the problem at the source? After all, it’s pretty clear that the current financial difficulty is occurring as a direct result of the collapse of the housing market. Stabilize housing and the financial markets backing it should quickly come around.
Consider, rampant foreclosures are forcing prices ever lower in market after market across the country. This in turn causes financial institutions (both in the secondary market such as Fannie and Freddie and the derivative market such as AIG) who ultimately hold the mortgage paper on most of those foreclosed houses to see their asset’s lose value – hence, the drawdown of their capital and, ultimately, their failure and the government bailouts.
However, while spending billions to bail out financial institutions who hold watered down mortgage paper may temporarily shore up financial markets, it does nothing to cure the problem, which is falling housing prices caused by ever increasing foreclosures. It’s a bandaid, not a cure.
The right answer is to stop the foreclosures. If the foreclosures stop coming, then the housing market will have a chance to stabilize. Prices will level off. Home buyers confidence will return. And given the enormous hidden demand for housing, prices should even begin rising.
That will have the beneficial effect of making all the mortgage paper that financial institutions hold more valuable and will start turning the tide on the financial crisis.
So, how do we stop the foreclosures? That’s the point of this modest proposal:
Instead of spending hundreds of billions of dollars to shore up failing financial institutions, why not spend tens of billions of dollars to salvage failing borrowers?
The cause of the problem is mainly that ARMs (adjustable rate mortgages) are resetting to higher interest rates and higher monthly payments that borrowers (who were ill-advised to borrow the money in the first place) cannot afford. That results in the cascade of foreclosures that’s sinking our financial system.
So instead of resetting the ARMs at higher rates and monthly payments, why not simply and arbitrarily rewrite all of those loans to keep those low teaser rates in place for an additional 5 years? For example, a borrower’s mortgage is resetting from 3.5 percent to 6.5 percent? He can’t make the payments.After 3 months of defaulted payments, let the government pay the difference for the lender to step in and automatically (without further threat of foreclosure or without concern if the borrower is an occupant or an investor) freeze the initial low rate (and the correspondingly low payment) at 3.5 percent for 5 years.
It’s not as outrageous as it sounds. Yes, it would cost the government billions to do this. But not as many billions as the government is already spending to bail out the tail-end of the system – financial institutions who hold the mortgage paper on foreclosed properties.
And it would have the enormous benefit of keeping people in their homes, stopping foreclosures, and stabilizing the market. But, many will certainly complain, it’s not fair! What about those millions of people who didn’t get in over their heads and take out risky loans? Their tax dollars would be going to save the financial necks of those borrowers who don’t deserve it. True, it isn’t fair. But, when the ship is going down do you stand around arguing about whose fault it is? Or do you start bailing water? We need a turn around. And soon.
This modest proposal would serve the same purpose as the CCC and WPA served during the Great Depression. It would restore confidence and stop the bleeding. And it could actually save the government money. Who knows it might actually save the government!