Buying a home can be a costly venture for any number of reasons, from market conditions to seller choices to your personal finances. However, one of the most overlooked factors that can have a big impact on how much you pay is how much you can borrow from a lender or home buyers’ finance company. If you are in the process of buying a new home, here are the basic costs to think about: Down Payment: Depending on the kind of mortgage you decide on, your down payment will depend greatly on the amount of money you have saved up and the loan term you choose. For example, a conventional mortgage aimed at first time home buyers with good credit allows as little as three percent down.
Brokerage fees: You’ll have to pay the regular commission fees to your real estate agent, but this doesn’t include any additional costs, such as expenses for advertising. In most cases, your real estate agent is part owner of the home buyers’ fund and therefore charges expenses associated with that. In addition, some sellers pay an additional fee to have their name included on the MLS, which represents the largest share of the listing fees for FSBO homes sold. This is why it’s always a good idea to shop around for the best cash for houses company in the area and real estate company fees and commissions before you commit.
Carpet and wallpaper: Your choice of carpets and wall coverings can impact your overall costs greatly. Most home buyers’ finance companies require you to submit a completed credit application to get approved, so you need to get this itemized before you can begin shopping. An unapproved car loan means you won’t be able to use the funds from your first new home purchase. Be sure to tell your real estate agent of all major and minor purchases and home improvements, so they can get these items added to your credit report.
Recently sold homes: As home buyers’ market remains a little bit above full capacity, there are a number of great deals available on recently sold homes. Many real estate agents have recently started offering investors that buy houses a chance to bid on already sold homes, at discounted prices. This offer has often produced amazing deals for first time home buyers.
New home buyers: If you’re a first time home buyer, you may be surprised by high mortgage rates. For this reason, many lenders are offering low interest rates and flexible repayment plans to recently purchased properties. In addition, many real estate investors have also begun offering cash purchases to home buyers. These investors typically require a cash down payment for the property and will resell the property for a profit once it is fully paid off. Be sure to check the terms of your current lender or investor, so you don’t end up with the deal of a lifetime.
Fountoulakis says he has seen a significant decrease in foreclosures over the past year and in his three years as a realtor. He attributes this decline to stricter lending guidelines and lower energy & real estate prices. With a little effort, you can certainly find great deals on Fountoulakis properties. However, be sure to work with a reputable and trustworthy realtor such as Fountoulakis to ensure a smooth home buying experience. Add on to your knowledge about this topic, by visiting this link: https://en.wikipedia.org/wiki/Real_estate_broker.