• Work with a Qualified REALTOR
• $0 Down Payments
• Searching for the Right Home
• Making an Offer
• Mortgages
• Inspections
• Closing

• Your Home's Exterior
• Add Housewarming Appeal
• Mechanical and Electrical Fixtures
• Tips for Showing Your Home

Buying:

Purchasing a home is a decision that will bring you years of comfort and joy. Yet the idea of spending all your free time evaluating homes and neighborhoods, figuring your down payment and monthly costs, applying for a loan, and finalizing the purchase is an exhausting prospect. For some buyers, the process can be tedious and confusing. This is why consulting a professional is wise. A licensed real estate agent can help you find a house, efficiently and quickly. Discuss with an agent the type of home you believe will be suitable for your needs.In addition, agents will show you homes that you can comfortably afford. They have the tools to help you understand how much a bank may lend you, and on what basis it is. Once you have calculated a price range, an agent will establish the qualitative criteria that will lead to the right house. After you've gone out to see a few properties together, he or she gets a sense of your likes and dislikes. It sometimes takes a few homes for you to establish these parameters for yourself. When you are ready to make an offer, an agent can assist you.
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A real barrier to buying a home is the fear of making that big decision to invest a large down payment for a home and commit to a monthly long term financing plan. But there are many houses out there today, and they come in every price range. Most people think they have to make a 20% down payment to even go near the door of a real estate office. Others often don't know how much money they have to put down. There are many programs available, and with the right qualifications, you may even get into a new home with zero down! Your REALTOR can assist you in obtaining information on various programs for which you may qualify.
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Once you've finally managed to put together enough for a down payment, it's time to begin searching for the right home to meet your needs. Buying a place to live is probably going to be the biggest purchase you'll make in your lifetime. But, panic doesn't have to be part of the process. Getting the best value for your money in the housing market isn't all that difficult; it's just a matter of knowing how to go about it. You've probably got a pretty good idea generally of how and where you want to live. Now is the time, before you go out looking, to make a list of everything you want in a house. Write it all down.

Money Matters

You'll also need to get an objective evaluation of your buying power. It helps to seek the advice of your bank or other mortgage lender to find out how much of a down payment you can manage, along with what your mortgage limit might be.

What's Important

Don't be swayed by the cosmetics. If you're going to be a canny buyer, concentrate on the major systems and the structure, which are the most expensive items to repair or replace.
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You want to be as calm and objective as possible when you decide to make an offer on a house, but finally locating a place that says "home" to you is a pretty exciting and emotional experience.

It can be difficult to put all that enthusiasm aside while you weigh the asking price against what you think the seller might accept.

And, it can get tricky. If the price you say you're prepared to pay is way too low, you run the risk of irritating the seller, who might respond indignantly by becoming completely inflexible. On the other hand, you don't want to agree to a price that's higher than it should be, either. Your mortgage lender is going to conduct an independent appraisal of the property before any loan is approved. If the contracted price is in excess of what the appraiser says the property is worth, financing is going to be tough to obtain.

Seek the Advise of an Agent

Making your offer is the stage at which your real estate agent's expertise is going to be invaluable. An agent will be able to provide you with comparative selling prices for similar properties in the neighborhood.

An agent also may be able to tell you how long the house has been on the market. If it's a new listing, chances are there's less room to maneuver than if the house has been on the market for six months or a year.

You'll also want to take into consideration the condition of the property. If major repairs need to be made, this should be reflected in the price you pay. Your agent can advise the seller that your offer reflects these conditions.

Just remember, in your negotiations, you can always go up, but you can't come down. Because a little haggling over price is often necessary in real estate, be prepared for counter-offers, and general financial gamesmanship, and don't let it get to you. Remain patient.
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You can go to any number of sources for a mortgage: banks, mortgage companies, insurance companies, private investors, or even pension plans. How you structure your mortgage, and what rate of interest you pay are almost infinitely flexible as well. And no one is surprised if you roll over your mortgage every few years; staying in one place for 30 years is a thing of the past in our increasingly mobile society.

Even paying off your mortgage isn't regarded in the same light today. Most, if not all of your mortgage interest payments are deductible, so hanging onto a mortgage lowers your taxes.

The type of mortgage you seek will depend on a number of factors. If you are a qualified veteran of the armed forces, you may be able to obtain a 0% down payment loan. Other loan programs require as little as 3% down, with standard loans available with 5, 10, 20% or more down. Your agent can often help you determine the best loan for you and will recommend that you get "pre-approved" for a specified loan amount.

You can save yourself thousands of dollars by taking the time to explore all the possible mortgage plans for which you may qualify.

After you know how much you can afford to pay, choosing a mortgage plan is the next stop. There are dozens of loan possibilities out there. Following are just a few of the options you can consider:

Traditional Fixed Rate Loans

Usually carried for 30 years, its virtue is that the payment rate always stays the same. When you budget, that unchanging sum is something you can count on. Still the most popular type.

Adjustable Rate Loans

ARMs, as they're known, can save you quite a bit of money. You pay less initially, often as much as two or three percent less than the going mortgage rate. But later, if interest rates increase, so does your payment. There are also ARMs that build increases into your loan no matter what happens to mortgage rates. First-year payments may be low, but they increase (or "balloon") regularly.

Fifteen-Year Mortgage

A 15-year payout can save you thousands of dollars in interest. The drawback, of course, is that your monthly payments will be a lot larger. Ask yourself if the tax benefits you lose will be really worth it.

FHA and VA Loans

You don't apply directly for Federal Housing Administration and Veterans Administration government-backed loans. You go through your lender, who will tell you if you qualify. Both types allow you very low down payments or, in the case of VA loans, no down payment at all. Your real estate agent can tell if you, and the property you want to buy, fit the criteria.

Owner Financing/Contract for Deed

Sometimes the property owner will be willing to take back all or part of the mortgage. Generally, owner financing will be at a rate higher than average, and it won't last for long - two or three years is common. The balance of the note, known as a balloon, has to be paid off in full when it comes due. If you get owner financing, try for the longest possible term and be certain you can switch over to a bank or mortgage lender.

With the variety and complexity of loan packages available you might want to use a mortgage professional. Mortgage professionals line up the kind of financing that best fits your financial profile.

When you choose the kind of loan you want and fill out an application for the lender, expect to pay a few up-front fees. Sometimes the application fee will include an appraisal fee and a credit report fee.

Because loan approval is based in part on your credit history, try to make it look as good as possible before the credit check. Lenders generally believe you can afford only 36 percent of your income tied up in debt payments, and that includes your housing payment. So, if your mortgage insurance and tax payment is going to eat up 28 percent of your gross income, that only leaves eight percent for other debt. Try to get your credit card bills down, and put as much cash money as you can come up with, even temporarily, in your bank accounts.

Make sure you can contribute your part of the paper trail before you set out. Expect to be asked for two or three years of income tax returns. If you own your own business, or have income outside of your job, you'll probably have to supply a financial statement.

Now, prepare to spend from 2-4 weeks locking up your mortgage. It can seem like a long process, but of course, it's going to be worth it the moment you become a homeowner.
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Hire a professional inspector to survey all parts of the house, including the structure, roof, exterior, the major systems (electrical, heating, cooling, and ventilation), and appliances that will stay. The inspector may spot existing as well as potential problems, and will suggest remedies.

You can build an inspection contingency into the Purchase Agreement. Ideally this should be a blanket clause that requires the seller to make legitimate repairs, or if the seller is unwilling to do this, would allow you to cancel the contract.

If the inspection does turn up some flaws, a seller often is willing to make necessary repairs or adjust the price. Or he or she may refuse. It all depends upon how much effort, or cash, both parties are willing to spend.

On the other hand, some sellers may institute their own inspections, which can be an incentive to a buyer. After all, it saves you time and money, and says something about the assurances the seller is willing to make. Even so, there are advantages to conducting your own inspection. You'll have the opportunity to tour the house with the inspector who can point out possible trouble or tell you how to avoid it. And though the seller's inspection may certify the house trouble-free with only minor flaws, those flaws may be important to you.

Finally, make sure that a comprehensive inspection report is in writing. Although you wisely will take lots of notes while you tour the house with the inspector, the official report will serve as the contingent document in any deviation from your contract. If there are major problems, use the report as an aid that will allow the seller to remedy the situation, or void the contract.
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An attorney or title company will conduct the closing and make sure all the preliminary detail work has been completed in time. These companies are impartial and objective, hold the down payment, oversee all the paperwork, and then distribute the money when the terms of the sale have been met.

Title Insurance

Title insurance is an aspect of home buying that many people have found confusing. There are actually two types-lender's and owner's. What title insurance will do is protect you, the buyer, from any claims that may arise against the property you're buying. When you have title insurance, you have a guarantee that once you've bought it, you own it, or the title company is obligated to compensate you for damages. Most lenders routinely insist on a title search and require buyers to purchase title insurance to protect their investment.

Closing Costs

You'll know in advance what fees you're going to be expected to pay, above and beyond the down payment. Your loan officer is obligated to provide you a good faith estimate of these costs at the time of your closing. Costs may include recording fees, other assorted taxes, legal fees, title fees, pre-payment of property taxes and homeowners insurance. You should check every fee in advance, and if there's something you don't understand or don't think you should have to pay, the time to question it is before the closing.

Mortgage Insurance

You may see a fee for mortgage insurance on the list. That doesn't mean that if you lose your job and are unable to make your payments, the insurance company's going to send in those monthly checks for you. Mortgage insurance will only pay the balance of your note if you die or, in some cases, are permanently disabled. Some lenders are making this insurance mandatory, especially if your down payment is less than 20 percent.

Final Walk-through

When you know everything's been completed and the closing is going to take place as scheduled, you should make an appointment with your agent for a last-minute inspection of the property. Known as the final walk-through, it takes place the day before or just before the closing.
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Selling:

Your home's exterior is the first thing a potential buyer sees when visiting your home. The following tips will help you increase your home's curbside appeal and create a strong first impression to potential homebuyers.

Fence

• Replace missing slats, stakes and posts.
• Repair broken hinges and paint or stain the fence if necessary.

• Mow, trim and fertilize the lawn.
• Weed flowerbeds and replace dead plants and trees.

• Clean up grease or oil spots on concrete surfaces.
• Make sure the garage door opens freely and the automatic door opener is working.
• Provide an unobstructed view of your home from the street by not parking cars, boats or other vehicles in the driveway.

• Polish door handles and door knockers.
• Replace worn or broken items, such as an unsightly mailbox or rusty doorbell.
• Be sure porch lights are working and add welcoming features such as a new doormat and flowering plants.

• Consider painting the highlight features of your home, such as trim work, shutters, gutters, downspouts and railings.
• If necessary, add a fresh coat of exterior paint to the exterior siding.

• Remove debris such as tree branches and leaves.
• Make any necessary repairs to worn shingles or cracked surfaces.

• Flowering plants and outdoor furniture add appeal.
• Remove any unnecessary items such as gardening equipment.
• Tidy any visible items, such as an outdoor grill or barbecue.

Experience shows that creating a housewarming feeling inside your home increases its desirability. View your home with a critical eye. Clean, complete minor repairs, and add finishing touches.

Doors and Windows

• Consider adding a fresh coat of paint to your front door.
• Polish brass fixtures and be sure door locks work properly.
• Oil hinges to both doors and windows.
• Keep stairways tidy and secure handrails.
• Repair or replace bent or damaged screens and window glass.
• Cut back outdoor plants that restrict natural light.
• Keep windows clean and tidy with draperies firmly affixed and in proper working order.

• Repair or replace missing or damaged tile, hardwood, vinyl and baseboards.
• Steam-clean or shampoo carpets.
• Secure loose carpeting and replace damaged areas.
• Be conscious of odors caused by dampness, high-traffic areas or pets.

• Ample storage space increases the desirability of the home.
• Keep closets tidy.
• Discard any unnecessary items and consider storing those you do not use frequently.

• Keep living areas clean and inviting.
• Arrange furniture to allow a spacious atmosphere.
• Make beds, arrange couch cushions, dust shelves, vacuum carpets and touch-up walls with paint or spackling as necessary.
• Wallpaper should be clean and adhere smoothly to the walls.
• Finishing touches such as flowers or candles add to the home's housewarming appeal.

• Clear counters, drawers and cabinets of unnecessary items.
• Clean soap dishes, mirrors, faucets and appliances (inside and out).
• Store cleaning supplies and hang freshly washed towels.
• Be conscious of odors caused by dampness, hampers, garbage and various foods.

• Store infrequently used counter-top items to allow a spacious look in the kitchen and bathroom.
• Keep drawers and cabinets tidy and organized.

• Items should be neatly stored in shelving or wall units.
• Allow appropriate space for the homebuyer to visualize their vehicle or workbench.
• Consider moving excess or over-sized items to mini-storage.

Increase your home's chance of being sold by ensuring that the mechanical and electrical components are in working order.

Lighting

• Be sure light switches, lamps and fixtures (inside and outside the home) are working properly and all light bulbs have appropriate wattage.
• Remember, bright light can make a small space appear larger.
• Softer light can provide a warm, cozy atmosphere to empty spaces.

• Re-enamel, patch or replace badly chipped or stained fixtures.
• Repair noisy toilets and faucets that leak or spray water.
• Ensure that sprinkler systems and outdoor faucets are working properly.

• Ensure that heaters and air conditioners are working properly.
• Clean floor and wall ducts.

• Check batteries in smoke detectors.
• Be sure security systems are working properly.

Once you've prepared your home for sale, keep a checklist of items to help you showcase your property to potential homebuyers. Remember that your home will be judged not only on its outward appearance, but also on the feelings it evokes in those who view the property.

Sight

• Use light to showcase your home.
• Open draperies in the daytime and turn on lights (day and night) to accentuate a cheerful atmosphere.
• If you have a fireplace, burn a Duraflame log.
• Remove any potentially offensive posters or signs.

• Consider playing soft background music while people tour your home.
• If there is exterior noise, such as traffic or nearby construction, work with your sales associate to schedule showings around noisy times of day.

• Grinding fresh lemon in a garbage disposal or boiling cinnamon sticks can add a clean, fresh scent.
• Candles, potpourri and flowers look nice and smell pleasant.
• Lingering scents of strong-smelling foods, smoke or pets should be aired out prior to showing the home.

• Your home should appear livable.
• Potential homebuyers may like to sit in a living area and visit with their sales associate.

• Baking cookies or bread before showing the home adds a pleasant scent to the home.
• Adding to the hospitable atmosphere, potential homebuyers may also appreciate a cookie or lemonade.

• To ensure your safety, remember to remove keys, jewelry and other valuables from the home during showings.
• Be sure to share necessary information with your sales associate and potential homebuyers.
• Gather manuals and warranties on appliances in the home.
• Make a list of items to be excluded from the sale of the home and whenever possible, remove them from the property. (For example: an outdoor hot tub may look as though it is part of the home, but you plan to take it with you when you move.)