Archive for the ‘Buyers at closing’ Category
7 Things All Buyers Ought to Know
November 18th, 2009
November 17, 2009 — Realty Times Feature Article by PJ Wade
“Ignorance is bliss” was never said about real estate purchases for 7 good reasons:
1. “Knowledge is bliss” may not make it as a buyer’s slogan either, because you don’t have to know it all—just what’s relevant to success as you define it. Different sets of knowledge are important in different buying situations, so the “bliss” generalization may not be specific enough to be useful. “If it is to be, it’s up to me” could be an excellent mantra since determination will drive buyers, both to discover what they don’t know and then, to fill that knowledge gap. This combined effort will assure a buyer is well equipped to make confident buying decisions.
2. Generalizations are self-defeating when evaluating properties since it is how each is unique that addresses specific value to a specific buyer—if you’ll excuse the generalization. All first-time buyers should not seek the same type of real estate solution just because they have never owned real estate before. Each of these buyers, whether they purchase alone, as a couple or with several friends or family members, has a different set of needs, weaknesses and advantages. When generalities are stressed, real estate solutions often concentrate on weaknesses like low down payments. Customized solutions, based on real estate knowledge, should focus on strengths which would counterbalance apparent weaknesses. For instance, first-time buyers may have more creative determination, which can allow them to tolerate living with boarders or tenants. These contributors to mortgage payments create a number of financial benefits and can turn an otherwise financially-out-of-reach property into a great investment solution. (See Pur-Plexing for more on this topic.)
3. Assumptions cost money and waste time. Assume nothing, including that you know what you don’t know. Experienced real estate professionals have a wealth of practical knowledge available to fill your knowledge gaps, but you have to be receptive to gain the full benefit. For instance, do you ask questions and listen to the answers? Find out what you’re assuming when you view properties, evaluate value and prepare an offer to purchase. The conscious effort and deliberate intent of this clarification means money in your pocket. Determination will enable you to put your advantages into action and use the real estate professional’s knowledge to overcome weaknesses. Remember the parsing of “assume” ( make an “ass-[out of]-u-[and]-me” ) if you find yourself thinking or saying, “But I assumed…” and get back in control.
Posted in How important is having a good credit score?
June 3rd, 2009
During this period of financial turmoil, how important is having a good credit score?
Some say that you should be more interested in getting yourself debt free than in trying to maintain a good credit score. To quote Dave Ramsey, “Debt is dumb. Cash is King.”
Sure, being totally debt free would be a great position to be in if you are worried about your job going away, but having a good credit score can have an effect in areas of your life that you may find surprising. Did you know that your car insurance most likely uses your credit score in order to decide how much to charge you when it comes time for that renewal notice? Even your homeowners insurance may be at the mercy of your credit score. And, ‘everyone knows’ that you have to have good credit to get a cell phone.
So, what can you do if you suspect that there may be a problem in your credit history? First off, you need to KNOW what is in your credit file. Federal law gives you the right to a free copy of your credit report once every 12 months. You can contact each of the credit reporting agencies separately and request that copy or you can make one request that goes to all three national consumer credit reporting companies ( Equifax, Experian and TransUnion). You can call 1-877-322-8228 and request your annual credit report. You can request it by mail to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Or, you can go to www.AnnualCreditReport.com and do it on line.
What can you do if you know that your credit report has some negative items on it? You cannot fix it overnight. But, you can look at the report and dispute any items that you know are not accurate. The credit agency must take action to verify the item and if it cannot, it must remove it from your report. But, be aware that this may take you some time and persistence to get it done. And, depending upon who put that negative item on your report, the item may come right back on and you’ll need to fight it all over again.. Keep after it and you can, in time, get it corrected. Do NOT pay money to companies who say that they can get all those late pays and such go away – if it is wrong it can be removed, but if it is correct, it will stay.
What else can you do?
- Pay your bills on time
- Stop adding new credit card debt
- Start paying off those credit cards – pick the one with the smallest balance and send them as much as you can as quickly as you can and when that one is paid off, do the same to the next one.
- Make a budget and spend your money on paper first so that you know where every dollar is going to go even before you get your paycheck.
- Keep track of where you money is going and cut your spending as much as possible to free up more cash to pay down your debts as quickly as possible.
Being aware of where your money comes from and where it goes is the key to making your credit life better. In fact one article I recently read even claimed that it will improve your love life – if you and your ‘significant other’ can talk about money and agree, you will be more likely to be able to talk about other things, and the more things you can talk about and agree on, the better all of your life will be – even your sex life.
Draw your own conclusion as to the validity of the statement that ‘A Better Credit Score means a better love life!’
Jim Jones can be reached at 573-529-6904. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
Tips for First-Time Homebuyers
April 13th, 2009
By Kim Coleman-
Prudential Vision Properties
Home-price adjustments in markets around the country have opened doors of opportunity for many renters. If you are transitioning from renter to homeowner, the prospect of making such a large investment may be exciting, while at the same time overwhelming. But it doesn’t have to be. Here are six common mistakes to avoid.
1. Not understanding the homebuying process. Educate yourself. Find a homebuyer seminar that you can attend or research online. The U.S. Department of Housing and Urban Development Web site (www.hud.gov) has an entire section devoted to homebuyers with common questions of first-time homebuyers, mortgage and home-buying programs information, downloadable tools such as a wish list and home-shopping checklist, tips on selecting a real estate professional, etc. Likewise, Prudential Real Estate’s popular Web site, prudential.com/realestate, offers consumers brand-new tools for the homebuying process, such as free home environmental reports, Value Range Estimates and Property Profiles, among other resources.
2. Not asking questions. There are many facets and intricacies to the homebuying process, so although you may gain a basic knowledge, you will still have questions. Don’t hesitate to let your real estate professional know that you are new to the process. Make sure you choose a sales professional who is willing to spend time with you and walk you through the entire process. He or she will expect you to have questions at each step—from house hunting, to making an offer to the closing. Remember, this is one of the largest financial transactions of your life, so you want to have a clear understanding of what’s going on.
What a Buyer Should Expect During the Closing
March 30th, 2009
By Vickie Wallace
Prudential Vision Properties
The last step in the home buying process is what real estate professionals commonly refer to as “the closing.” The closing, or settlement or close of escrow, is when all the progressive steps in buying a home from the acceptance of the offer, title search, home inspection, mortgage approval, and so on, come together in a final transaction. The documents are ready to sign, the buyer is ready to hand over the purchase price and the seller is ready to transfer title—and most importantly the keys!