uild a house and you start before you lose your heart (and
with the foundations. Seems perhaps your money) to that dream
pretty obvious, doesn't it? home. Complete the preparatory
But buy a house and too many steps before beginning to look at
people focus just on what they specific homes. It's only common
see above ground, forgetting that sense: foundation stone first and
it's as necessary to lay good, keystone last. Well, let's get
solid foundations for buying a down to basics. Let's see how
house as it is for building it. best to start laying that
Perhaps, as a prospective foundation stone to ensure that
homebuyer, you see great interest you stand the best chance of
rates and a buoyant housing actually buying the house of your
market, and you're not convinced dreams.
of the need for thorough
preparation. You could find, One of the most important
though, that you don't get to buy preparatory steps you need to
your dream home, but instead pay take is to initiate the loan
the price for not being prepared application process. This will
by losing out to someone who has entail a lender running a credit
done the necessary legal and check and drawing up a credit
financial spadework. report for a modest fee of $25.
You will also need to complete a
"The business of America", loan application. All being well,
declared Calvin Coolidge, "is the lender will furnish you with
business", and you should make it a "good faith estimate" showing
your business to recognise that the costs of the loan and the
buying a home is the biggest approximate monthly repayments.
business transaction you're Pre-approval will follow
likely to make during your pre-qualification subject to
lifetime. So, use your head verification of the information
you provide. northeast U.S, but it still
generally holds that
So why then, is pre-qualification pre-qualification gives you
so important? leverage over sellers impressed
by your pre-emptive action.
1.The process involves a credit
report. This might highlight the 3.Pre-qualification will help
need to settle outstanding debts focus your home search. Knowing
in order to maximize your credit how much you can afford will be
score. Settling any debts, very useful when searching
however, doesn't automatically property websites.
erase them from your report - it
might take months. You might So, make sure your finances are
perhaps need the services of a in order. Make sure too, that you
mortgage consultant to get you have a realtor working for you
qualified for a loan. Whatever and don't rely on the seller's
the problems you may experience agent. Word of mouth and personal
with your credit report, the very recommendation are the best way
fact that you will have picked to secure the services of a
them up early will save you realtor you can trust, and who
disappointment later. will act in your best interests.
2.If all goes well and you get Finally, having advocated a
prompt pre-approval, you'll be proactive approach throughout,
able to put in an immediate offer there is one area over which you
when you find your dream home. have no control and that is the
Pre-approval stands you in good appraisal. Mortgage lenders like
stead to have a reasonable offer to have an appraisal of your
accepted. It's true that bidding prospective home's market value
wars have taken place in the to protect their financial
interests. You might imagine that 3.Having had the forethought to
your interests too, are being get a home inspection report you
protected - surely an appraisal will now have the leverage to
will reveal any real problems? - defer payment of the appraisal
but you'd be wrong. You might pay fee should you be dissatisfied
for the appraisal but you would with the proposed handling of
be well advised to pay for a home repairs.
inspection report as well.
One final word of caution. You
Why the extra expense? should apply the same
precautionary principles to the
1.The inspector is independent of home itself as you did to the
the lender. homebuying process. Again, don't
let your heart rule your head.
2. The inspection will be Your dream home might require as
thorough taking in inspection of much hard work - the addition or
the roof; testing of electrical removal of features, for example
appliances; checking plumbing and - as did laying the foundations
heating and looking for signs of earlier in the process.
pest infestation and dry rot.
About the Author:
Maureen Cook lives in England with her husband. Having acquired an honors degree as a mature student, she writes articles for publication from home. She lays the foundations for buying Real Estate. Learn how you can navigate the practical and financial minefields to own your dream home!
Visit: http://www.real-estate.myknowledgevault.com
Source: www.isnare.com
