Helpful Tips for Home Buyers

Buying a new home can be a daunting experience – especially if you are new to the game. With the market making the transition into a seller’s market due to the low inventory and the abundance of buyer’s out there, the home shopping venture can become frustrating. In this type of market, it is even more important for buyer’s to have that ever so important pre-approval letter in hand from their lender, and to be ready to pull the trigger when they

do find a house worth writing an offer on. Outside of that, there are others tips for buyer’s that are important to remember before and during the home buying process:

  • SAVE MONEY. In order to be a successful homebuyer, you will need to begin saving money in order to hep cover your down payment and closing costs. Savings also demonstrate to a lender that you have the capacity to be a successful borrower
  • DO NOT ENTER INTO NEW DEBT. The more debt you have, the less you can borrow to buy a home.
  • STAY CURRENT WITH EXISTING PAYMENTS. Make sure you pay all your bills on time. Any late payments will show up on your credit report and may disqualify you as a borrower. If you can, pay extra on credit card payments to reduce your debt and interest expense
  • GET A FREE COPY OF YOUR CREDIT REPORT AND CLEAR UP ANY ISSUES. The credit report shows your debt payment history and tells the lender if you are a good borrower. Review your credit report to see if it is accurate.
  • ADJUST YOUR BUDGET TO REFLECT THE ADDITIONAL COSTS OF HOMEOWERNSHIP. Even though you may qualify for a high loan amount, take time to consider the additional expenses that come along with becoming a homeowner – things like water, sewer, garbage, and maintenance costs

Fifteen Contract Contingencies You Should Be Aware Of

Following is a list of fifteen contract contingencies that any seller should be aware of in regards to a purchase contract for their home. Many of these contingencies can make or break any transaction.

  1. Building inspection contingency
  2. Survey and flood plain contingency
  3. Stigmatized property contingency
  4. Accountant review and approval contingency
  5. Environmental hazards contingency
  6. Planning department approval contingency
  7. Lead paint contingency
  8. Loan approval contingency
  9. Attorney review and approval contingency
  10. Title inspection contingency
  11. Occupancy permit contingency
  12. Sale and/or closing of current home contingency
  13. Appraisal contingency
  14. Termite/pest inspection contingency
  15. Subject to someone else’s signature contingency