Buying a home can be complicated. Particularly when dealing with lenders and bank owned homes, knowing the ins and outs of the real estate market is only the first step in successfully closing the deal. Before signing on the bottom line, take a look at these no-nonsense tips and enjoy a head start on a trouble free escrow:
Get pre-approved for a loan. Sellers accept offers from pre-approved buyers more readily and are willing to negotiate because they know you can close the deal. Having a pre-approval letter also gives you an edge when buying San Diego foreclosures because lenders want fast escrows from guaranteed buyers.
Get it in writing. As much as you would love to take everyone at their word, buying a home is a business deal and having the terms of the deal, including price and desired escrow closing date, inked on the dotted line is your best back up in case of disagreements later.
Ask your lender for a Good Faith Estimate. Once you know the purchase price of your new dream home, have the lender provide a GFE that spells out your anticipated closing costs and possible loan fees right away. This will help you get your finances in order to speed the closing.
Get a lock on it. Your loan rate, that is! With interest rates changing daily, and more recently starting to inch upward, you want to lock in your mortgage rate as quickly as possible. Make sure the lender puts it in writing and tells you exactly how long your lock is in effective. You will want to make sure you close escrow before the lock expires.
Schedule a home inspection. This one is non-negotiable. No matter how handy you think you might be, or how talented a craftsman your partner is, you need to know what you're getting yourself into before you close the deal. While many San Diego bank homes come with gentle fixer upper status, major deficiencies such as damaged roofs, bad wiring or cracked swimming pools need to be identified so you can factor the repairs into your investment budget or have time to walk away from the deal.
Shop for insurance. Homeowner's insurance isn't just a luxury in Southern California, it is absolutely essential to protect yours and the banks investment. Many companies have tightened their underwriting guidelines and finding quality coverage at affordable rates may be a challenge. Start with your existing carrier if you have one. Your excellent claims history and good reputation for on-time payment can often get you a lower premium on your next home.
Don't rush the signing. You want to make sure you have time to read everything. No one is going to intentionally mislead you or try and cheat you out of a deal, but mistakes in documents do happen. Double check your mortgage note, the interest rate you are being charged, the term of the loan, the way your name is listed on the title, and any other material fact related to the transaction. You worked hard to find that stunning La Jolla foreclosure or El Cajon bank home. Don't rush through the signing and overlook something important that could end up costing you time and money later on.
For more home buying basics contact Richard Elias today at 1-800-474-1919.
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About this Page: Even experienced home buyers can benefit from these tips on what to know when buying a home. Richard Elias explains how to make the transaction easy and worry free.
Home Buying Basics
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