First Time Home Buyers
Patty Bell always recommends hiring professionals and obtaining a home warranty!
Buying a home should be a wonderful experience however the steps themselves can be nerve wracking and complicated, that is why you need a Real Estate Agent you can trust! Educating yourself to the process and preparing yourself to both the purchasing process and the emotional process is important. Don't be misled into believing that buying a home is a totally "warm & fuzzy" experience. But then again, nothing truely worthwhile is! Home Ownership is after all, the American Dream!
The Home Inspection
Hire a Professional Home Inspector! If you spend the money for a professional and they find the home is in great shape, you may feel like you have wasted your money. On the other hand, if the inspector finds there are no rafters in the attc or toxic mold, it would prove to be one of the best investments of your life. The inpector does not "appraise" the property or provide any warrantees.
Appraisal
The appraisal process is important in that the appraiser provides a report indicating the "value". Do not expect the appraiser to take the place of a Professional Home Inspector just as you do not want to expect the Professional Home Inspector to appraise the property. Each play an equally important, however separate role.
Warranty
There are warranty's that you can purchase that provide an aray of coverages. These policies typically cover the major components of the home (i.e.: heating, electrical and some appliances) within the first year of home ownership. Typically there is a per occurance deductibe on covered items. Although there may be other companies serving the local area, the following are locally recognized companies:
Your Credit
Lenders commonly pull your credit report from three credit bureaus. This report is more indepth that the typical "internet" credit report. If you suspect there are any credit issues, it is important that you discuss and work closely with your loan officer. After your credit has been pulled by your lender and you have been approved to purchase a home, do not allow your credit to be pulled randomly by other companies. Some lenders pull credit right before closing to verify there has been no significant changes in your financial ability to purchase. If your credit score has changed, it may affect your ability to close on your dream home.
Down payment Assistance
There are organizations to assist Buyers with their down payment. If you qualify for one of these programs, investigate all the pros and cons. There may such things as a time frame involved before you could sell, a "recapture" or stipulations of occupancy. It is important to remember that building equity typically takes time or money. If you have no initial investment (down payment), you will probably not have an "instant" equity in your new home. In summary, if you obtain a 100% loan, you should not intend on "flipping" your home in a short time period.
