Are you looking to buy your first home? Are you already a new homeowner? If so, you’ll want to read this article. It will help you avoid making common mistakes that could cost you thousands of dollars.
Taking Out Too Much Money for a Down Payment
A down payment is the amount of money you put down as a deposit toward buying your home. Many borrowers take out an equal or even greater chunk right off the top of a loan, expecting the rest of the loan payments to cover those fees.
It’s just like buying a car from you local auto dealership, you want to be able to buy a car that’s highly affordable.
If you put down less than the down payment amount the lender will require, a lender may refuse to make principal reductions on your loan. But if you put down only the down payment amount, your loan may have an annual percent rate of 10% or higher. In this case it isn’t a down payment issue at all.
The bottom line is that a down payment is required to get a loan. When you buy your first executive Singapore condo, Provence Residence, your lender and real estate professional will require that you put down either 10% or 20% of the down payment amount or provide a realtor’s written approval of the down payment amount.
How to Get the Best Down Payment for a New Home
First, think about how you typically made down payments on your home and/or auto loan at the time you bought them. Most people did quite well with a mortgage home loan and a car loan. I made my mortgage home loan in large part by paying only the first 10% of my gross income toward my debt, while my car loan was financed by spending the full 30% of my gross income.
You should be able to figure out how much additional money you need to make as a down payment on a home you want to buy in your area, if you pay the 10% to 12% rate on a new home. Some banks will let you apply on the web so you get the application form and the loan officer will e-mail it to you. Don’t take it personally if your loan officer is unresponsive to you.
Consider how much you can afford to borrow You can get a good feeling about how much you can afford to borrow by seeing how much interest you pay overall on your loan. Your payment goes up if you’re paying off the loan more quickly, or if you’re paying smaller amounts of interest each month, or if you want to add on a bigger loan payment to your loan payment each month. Even if you pay more than the loan’s interest rate each month, however, you still will probably pay less than the loan’s interest for the first few months of repayment. Then you’ll start paying more than the interest rate per month. After paying the loan off, the loan’s interest rate should be zero or very near zero. You can also calculate the loan payments that you expect over time.
Picking the Wrong Real Estate Agent
Real estate agents—or Realtor’s—are not your friends. They are your competitors. A lot of folks believe that home buyers make better judgments when it comes to the local Realtor who sold their home.
This is simply not true for everyone. However, many individuals prefer the work of a professional agent.
If you are not comfortable working with Realtors, let me be perfectly frank with you. Do not use a Realtor when moving to, or buying a home, especially if you use a Realtor who is not qualified and experienced to work on your behalf.
It is hard to find any Realtor who can take care of you in your time of greatest need. A Realtor who only uses his or her home as a showcase for advertising is a dangerous choice to make.
After seeing real estate agents and Realtor’s work for years without much concern for the consumers, I think it is time to wake up the government and force new regulations on the real estate industry.
In the U.S. government of the United States, there are regulations regarding the licensing of real estate agents and how they market and advertise for consumers. If you feel that Realtors are not doing an ethical job and you may feel deceived, then you are not alone.
The following are the top 3 mistakes you can make when choosing your first real estate agent. This list includes mistakes that often occur due to an unethical Realtor’s actions.
Mistake 1: Not Looking During The Showings Process
Real estate agents often tell their customers, “It looks like you are in a hurry, but the real estate agent will make sure to be in the office for you today to answer any questions.” Even when you get to the agent the first time, he will still ask how you’re doing during the process, while showing you things he considers important. A quick-thinking real estate agent can make all the difference in the world to a homebuyer. If your home search goes from un to productive, your agent is to be commended for that. Most real estate agents have an extensive network of resources for buyers, and can locate just about anyone – even if he or she is not from around there.
Mistake 2: Choosing an Agent with No Prior Experience
Choosing an Agent with No Prior Experience We all enjoy the idea of choosing someone who has no prior experience and who knows nothing about the market. As we have covered before, hiring an agent with prior experience is generally a bad idea. Most inexperienced agents have a high percentage of bad experiences trying to sell their book. They have little to no experience being around their customers and they are often emotionally unbalanced. They are often very bad negotiators. They spend the entire night thinking of ways to squeeze the largest possible amount of money (or more) for their client instead of actually preparing a thorough presentation of who their customer is.
Mistake 3: Choosing a real estate agent that does not actively lead you through the process
Choosing a real estate agent that does not actively lead you through the process, but rather just assists you in accomplishing the buying, selling and moving into your new home or home of up to five years, could be a problem. Most agents that want you to buy a home will put their best foot forward, because they believe in them, and they want you to do what they are doing, and they’ll back it up with a list of reasons why you would be on the wrong side of selling your home for the asking price. Some agents will lie outright, making up an alibi for you to live a life without living on a farm, to own an income producing farm.Not Negotiating the Contract
Not Negotiating the Contract, Not Negotiating The Price, Not Negotiating The Down Payment
Buying a home can be an exhilarating experience or one that leaves you feeling like you’ve fallen and skinned your knees. Whatever your experience, there are a few common mistakes that no home buyer should miss along the way.
Your first home has a lifetime to build up in your memories so it’s important to negotiate well right from the start.
A mistake you all encounter is negotiating the contract. You know what you want in a home and the seller likely has similar preferences in their own home that you might want. They have your best interests at heart and it doesn’t hurt to be in a negotiating position.
Your first home is likely to end up with some things the seller does not like, or you think may be a bit too much for the area or you want even things that the seller doesn’t like in the contract. While this is the case, it doesn’t mean that you have to go back to square one and fight over these things. You have several choices to deal with the seller on what you both want.
Tips to Negotiate the Down Payment
In the United States you have the right to down pay the purchase of your first home. This is what is known as a payment plan or payment option in real estate.
If you qualify to get a down payment, you are not obligated to buy your home right away unless you are financing the down payment yourself. In terms of the sale, you are only allowed to pay the balance of the purchase price within a certain amount of time after the sale is final.