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7 Myths About Real Estate Investing That Are Costing You Tens Of Thousands Of Dollars
Did you know that real estate investing has created more millionaires that ALL other industries combined? The question, then, is why are more people not invested in real estate? Even with the increased awareness in real estate investing, more people...
Flip That House Style Real Estate Investing
I love those TV rehabbing shows like Flip That House. On the show people buy a house needing to be seriously updated and repaired. Usually the kitchen is heavily upgraded with new cabinets, cutting edge appliances, new countertops and more. The...
Home Improvement Projects On A Budget
Every year thousands of home owners do major renovations on
their house in order to improve the value as well as enjoy their
improvements. Some home improvements are very costly and many do
not have a good return for the money spent. If you want...
How The Grandfather Clock Got Its Name
Over 100 years ago in Piercebridge, North Yorkshire, England, two bachelor brothers named Jenkins, also from England, managed a charming country lodge known as the George Hotel.
For many years, a floor clock (now known as a grandfather clock)...
The Home Decorator�s Guide to Wall Repairs
Everybody has had one or two. You know, those little hole or indentations in the walls � behind a door, or behind a picture. If you live in a home, hang a picture, or have children � accidents happen! But repairing those accidents is easy. I...
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First Time Home Buyers – Where To Start?
So you want to buy a home? Statistics show that more and more young single people are buying homes. With mortgage rates at an all time low, more programs to assist first time homebuyers, and lots of homes on the market to choose from; it doesn’t make sense to keep paying rent. So, what should your first move be on the path to becoming a homeowner?
How Much Home Can You Afford? The first step in the home-buying process is to determine how much home you can afford. You do this by contacting your bank, a mortgage lender, or looking online for a pre-approval. A pre-approval is a simple calculation that tells you the amount you'll be able to finance through a loan and what your monthly payment will be.
Why Should You Obtain a Pre-approval? There are three important reasons to obtain a pre-approval.
1. Pre-approval will determine the maximum you can spend on a house before you shop, so you know what price range to target. Many shoppers aim too high, bidding on a home that they later learn is beyond their means because of unforeseen debts or other financial factors, which leads to disappoint in your search for the perfect home.
2. If helps your real estate agent be more efficient. By knowing what your financial parameters are, your agent can spend more time looking for houses that "fit" and less time pursuing dead ends.
3. When it comes time to write an offer, you will strengthen your bargaining position if you have that pre-approval. Your offer will stand out in a case of multiple offers for the same house. Look at it from the seller's perspective. If you had two offers on the table for your house, one from a fully pre-qualified buyer and the other from an "I'll get around to that soon" buyer--to which offer
would you devote the most attention?
It is important to remember that the amount of mortgage you will qualify for is the maximum. It is the amount that the lender feels you can afford, but it is not necessarily the amount that you want to pay. It sometimes is advantageous to be conservative here. Too many buyers simply rush off to the maximum level and some find themselves strapped when it comes time to purchase necessary items (such as draperies, additional furniture, new appliances and lawn and garden tools, for example) or when they forget to factor in increases in monthly expenses (for example utilities, maintenance and repair costs).
A mortgage pre-approval is generally good for 60-90 days, after which the lender may require an update to the credit report and/or other exhibits within your application file. Further, although the lender has issued a credit decision in advance, nearly always it will reconfirm the data that led to the initial decision. If any part of your financial picture changes - be it credit, income, or asset related - it is critical to alert the lender of these changes so that your pre-approval can be reissued and/or adjusted.
About the Author: Joyce Boulan is a retired real estate agent who worked with many first time home buyers. If you are getting ready to purchase your first home or if you think you can't afford to purchase your first home, don't make another move until you have read this important information!
http://tinyurl.com/bpvrn
Source: www.isnare.com
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