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Buy Real Estate Without Breaking Your Budget

April 10th, 2014 • By: AlamQ Popular, Recent, Tips

10 Tips to Buy Real Estate Without Breaking Your Budget

If you want to buy a home, but aren’t sure if your budget can handle soaring real estate prices, we’ve got good news. There are things you can do to stretch your buying power. With the help of your   real estate and mortgage agent   and these 10 tips   you can become a savvy home buyer without breaking your budget.

  1. Get pre-approved for your home loan. This means, fill out a loan application and go through the process of securing financing. That way, when you’re ready to seriously evaluate   real estate, you’ll know exactly how much home you can afford. And you can prove to a seller that your offer is sincere.
  2. Explore creative financing options. During the home loan pre-approval process, ask about ways to get creative with your financing. Low down payment options, first and second mortgage combinations and first time buyer programs might help you afford more funding. Many lenders are now offering interest-only home mortgages; just make sure you thoroughly evaluate the terms for this type of home loan. Down payment grants are also available in some instances and might be worth investigating or discussing with your   realtor.
  3. Sell your existing home first. Although selling your existing home before finding new   real estate to buy can be a little nerve wracking, any inconvenience will be offset by your ability to make an offer with cash in hand. Contingent purchases are not the best when negotiating to buy a home. Having your financing in order and your bags packed will give you the advantage in a competitive market.
  4. Look for vacant real estate. Perhaps a seller’s job has transferred him out of the area. Or maybe a family purchased a new home before putting their existing one on the market. In any case, a vacant home could be just the deal for a savvy home buyer, so have your realtor look for vacant property in your preferred neighborhoods. And keep in mind, the longer a house stays empty, the greater your negotiating power will be.
  5. Consider cosmetic fixers. If you’re handy with a paintbrush, a toolset and gardening equipment, consider buying   real estate in need of cosmetic fixing. Property that lacks curb appeal needs minor handiwork or the yard overhauled could end up being the home of your dreams for a price you can afford. You just need to look beyond the ho-hum to see the potential of a cosmetic fixer.
  6. Buy a home that’s a major remodel project. If you want to live on Lake Washington, but can’t afford a $2M home mortgage, consider buying a dilapidated cottage on a fabulous lot with western exposure. In time you’ll need to gut the existing home and build from the ground up or contract significant home improvements. But in the end your property value will skyrocket. And if your carpentry and other construction skills are well-developed, you can save even more and accrue “sweat equity” during your remodel by doing much of the work yourself.
  7. Don’t discount bank foreclosures. One person’s loss could be your gain if you buy   real estate in foreclosure. Although the search for a decent foreclosure may take a while, your   realtor should be able help. The U.S. Department of Housing and Urban Development (http://www.hud.gov/) can be an excellent resource for foreclosed properties. Because HUD houses are sold at market value, your best bet will be homes that need cosmetic work or even major repair.
  8. Land with a manufactured home. Sometimes, to buy a home on a budget, you need to look beyond convention. Even if your wish is to buy   real estate, you may have to settle for a piece of property in an outlying area with a mobile or manufactured home. Discuss this option with your   real estate agent and try to keep an open mind about this possibility.
  9. An older, smaller home. Older homes are typically priced much less than newer construction and don’t tend to create buyer bidding wars. If you can enjoy life in an older and smaller home in a neighborhood or suburb off the beaten path, this could be your ticket to real estate ownership.
  10. The cheapest house in the best neighborhood. You have your heart set on a specific   and expensive     neighborhood. Maybe it’s the schools that you’re interested in. Or perhaps it’s the close proximity to downtown or the waterfront. In any case, a budget-savvy buyer will look for the least expensive home for sale in the neighborhood. If you’re not in a hurry, you can even play the waiting game to see what properties come on the market. Your   real estate agent can be a real asset in this case by investigating potential sellers.

Buying real estate without breaking your budget will require research and compromise. On moving day, however, you’ll have the satisfaction of knowing that your homework paid off!

Basics Of Home Buying

April 8th, 2014 • By: AlamQ Popular, Recent, Tips

Home Buying – An Important Investment

The most important investment you will ever make is probably the purchase of a home. Finding the right home for you can be a long and arduous process, but there is no getting around that.

Know Your Wants And Needs

Before embarking on your journey of house hunting, you must know what you really want to find. Sit down with pen and paper and list all the features you care most about, such as:

  • Location (in a particular city, school district or neighborhood)
  • Size — how many bedrooms and bathrooms
  • Parking — a 1-car garage or 2?
  • Style — 2-story house or ranch style home?
  • Heating — central heating and/or air conditioning?

Equally important, on a new sheet of paper list all the features you absolutely do not want in a house. For example:

  • high-traffic area.
  • high noise area (airport, train station or highway in close proximity)
  • maintenance — major repairs needed

As you look at houses, keep both lists in mind. Your lists may change over time as you do more looking. You’ll want to add or remove features, or perhaps you’ll become willing to make compromises. Realize that you most likely will not find the “perfect” home. Experienced home buyers will tell you, perfect homes are not found, they are made perfect through hard work.

Get Your Credit Report In Order

Prior to looking at properties, you must get your finances in order. This is the time to review your credit report and clean it up, if need be, to maximize your credit score. Many people do not realize how important it is to check your credit report periodically to make sure it is accurate. You should pay off any past due amounts, or negotiate a settlement price to close the debt. Get such agreements in writing, before paying any settlement. Keep all receipts for any settled items from your credit report since it may take months to get the debt actually removed.

Research Your Home-Buying Options

Decide what kind of property you are interested in. Do you want a HUD property, a foreclosure, real estate, or property for sale by owner?

A number of web sites list homes according to city, state, or price range. Visit these sites to see pictures of homes, many with virtual tours, and review the listing features.

Get Pre-Approved For A Loan

You’re ready now to find a lender and get yourself pre-approved for the loan. Being pre-approved offers a number of advantages. It will clarify the price range you can afford. Also, once you find the home you want, you can place an immediate offer. If you have to wait for pre-approval, someone could buy the house right out from under you.

Several special programs are often available from lenders, that can save you money in the closing. Ask your Mortgage Broker about any special programs before you decide on a loan.

Find A Good Real Estate Agent

It is wise for the first time home buyer to work closely with a real estate agent, no matter what type of property you’re looking for. A knowledgeable real estate agent will make your house-hunting much easier. A good real estate agent is usually a good negotiator, and will be able to help you with the complicated paperwork involved in placing an offer on a house or in closing a deal.

It’s essential that you have a real estate agent working for you as the buyer, rather than relying on the seller’s agent for the house you want to buy. The latter can involve a conflict of interest, which usually works to your disadvantage.

To select a real estate agent, you should check with your friends and neighbors for recommendations. Find an agent you feel comfortable with and who is knowledgeable about the area you hope to buy in.

These are just the basics of home buying. You will find many details you need to master as you move through the buying process, but having these basics under your belt will give you a head start.

Home Buying Process

May 14th, 2010 • By: AlamQ Popular, Recent, Tips

Home Buying Tips

Buying a real property is by far one of the most secure and profitable investments one can make. Similarly buying a home is one of the biggest financial decisions one will make. It’s always paying If you are well aware about the ground reality of buying real estate, It’s advisable to take help of a local realtor to understand the safe buying process. Again, it’s suggested to take following steps to buy a home.

  • Affordability: Find how much you can afford to buy a home according to your financial situation – maximum price you can be comfortable with.
  • Neighbourhood: Make decision of your future neighbourhood – area of your choice.
  • Pre-approval: Get pre-approved for purchase of the home for balance payment after down payment.
  • Home Search: Check many listings, short list, visit few homes of your choice and select one with the help of your realtor.
  • Offer: Make an offer on the home of your choice
  • Price Negotiation: Negotiate the price with the help of your realtor and agree on the best price in the area.
  • Closing: Discuss with your realtor the process and difficulty during closing.

P.S: If you are pre-approved for financing, you are better prepared for closing.  Go to complete the closing process and become the owner.