With the drop in home prices and mortgage rates, home buyers must feel as though they have hit the jackpot. Many have and will take advantage of the bonanza that buying a home now represents. Even with those two factors working in favor of the buyer, there are still an additional steps that can save a home buyer more money. By shopping for a home loan with multiple lenders might take time, this approach will ensure the very best loan possible. Contact at least five mortgage brokers or banks. Let each know of your intentions to comparison shop. Allow no one to pull your credit report at this time. Request a Good Faith Estimate from each. The estimate is a list of all cost and fees attached to the loan. The buyer can then compare the loans and ensure themselves of getting the best loan available.
Perform a home inspection and any other specialized inspections. Nothing’s worse than moving into a home and find out your air conditioner is defective or realize during the next rain, the roof has leaks. A home inspection can run about $500, heat and air and roof inspections are under $150 a piece. The money spent can end up saving a family thousands later on. Order a one year home warranty that will protect you during the first year of ownership. This covers most components inside and outside the home.
This next suggestion will be difficult in the current environment, stay away from bidding wars, It seems almost all well priced homes now have more than one offer and following this advice might be impossible, especially when you find a home that meets all your requirements. The multiple bid brings up the eventual purchase price and the stress level of the prospective buyers involved. Any comments from buyers with horror stories involving their multiple offer scenario would be greatly appreciated?
Staying away from a fixer-upper is sound advice, unless you’re a contractor. These homes can drain a bank account quicker than a trip to Las Vegas. Mcmansions are a thing of the past and can also cost more with daily up keep than a less exorbitant property. Those homes will be less desirable for future resale as families move toward less lavish properties. These are just a few mistakes that can cost home buyers. Please visit my website at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home and easy access to view local area homes for sale in Davis, California and the surrounding communities including pre foreclosures.