Friday, December 6, 2013 - Article by: Carlo Sanchez - Security National Mortgage Company -
Essential tips for homebuyers and sellers Posted by Carlo Sanchez
Tips for home sellers:1 | Review your mortgage agreement with your financial institution and/or a mortgage professional. In addition, look into additional financing options with your mortgage professional in the event youre simultaneously paying two mortgages or require temporary housing.
2 | Assess the selling costs, which may include repairs, home appraisals and inspections, legal and real estate agent fees so that you can budget and save for them. 3 | Crunch the numbers and look ahead. Will your homes proceeds cover your next home purchase? Do you plan to invest part of the proceeds? 4 | Purge and de-clutter six or more months in advance, because over-stuffed storage areas suggest a lack of space rather than reflecting on the homeowners organizational skills and hoarding tendencies.As well, the more you give away, sell and donate to charity, the less youll have to pack, ship and unpack. Systematically go through each room and recycle or re-purpose anything that hasnt been used in the last 12 to 18 months. Unless you absolutely adore it or it is deeply sentimental, let it go. If necessary, hire an organizational expert to keep you focused and ruthless. 5 | Identify items that are worn, outdated or dont work, then repair or replace them. Ask friends or family to help you identify what needs to be done but be aware that they may be uncomfortable with the level of honesty required, which can make a professional stager or organizer better suited to the task. Some common fixes include replacing stained switch plates, repairing old caulking and dingy grout in the bathrooms, and applying a new coat of paint for a fresh and clean look. If things such as leaky roofs and basements arent repaired, buyers will expect a reduction in price. 6 | Assess comparable homes in your neighbourhood no more than three months prior to putting your home on the market because the conditions can change relatively quickly. 7 | Source and interview real estate agents at any time, but ask them to evaluate your home no more than six to eight weeks before you plan to put it on the market.Tips for homebuyersTo preempt the likelihood of unpleasant surprises, astute buyers should begin the financial education, preparation and assessment process the moment they start contemplating a home purchase.1 | Have Equifax, TransUnion or another agency pull your credit report. If necessary, you can commit to improving your credit rating by paying off certain creditors and loans before contacting lenders and mortgage brokers.2 | Crunch the numbers! Can you afford it? Is it the right decision for you? Calculate your net worth, current household budget, monthly debt payments and how much you can afford to spend on a home purchase. A home purchaser should plan on a down payment of at least 3.5%. However, your affordability assessment may indicate you need a larger down payment or the need to reduce the price range you were considering for your home purchase. 3 | Get your mortgage and financing documentation in order. At the very least, lenders and mortgage brokers will demand documentation that proves your personal information, your net worth, income, employment, the amount and source of your down payment, and your ability to pay the closing costs which generally range from 1.5 to four percent of the purchase price. 4 | Get pre-approved for a mortgage to determine the amount you can afford based on the lenders review of your finances. This will also provide written confirmation of the interest rate that will hold for a specified period of time. 5 | Search online and print ads for homes in your desired location and price range with your preferred features. Get a feel for whats out there by viewing photos, videos and attending open houses. You can do this anytime, but remember that prices and the number of quality listings will fluctuate according to the market. 6 | Look for a realtor. Ask friends and family for referrals, meet realtors at open houses, and find them when researching particular topics online.
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