There are a lot of people out there willing to sell
you advice on how to purchase a home and how to make money on real estate. I have gleaned a few
things from some of the ones I have been exposed to. Here are some general tips.
1. Plan to buy a house that fits in your budget even if it is not your dream home.
2. Plan for the financing before you go house shopping.
First plan on a down payment, start now the longer you have to work on one the better.
I agree that the more you can put down the better, most suggest at least 20%.
Go to several lending institutions
At each one make sure you pick up a Good Faith and Truth in Lending.
When you have three of these compare the numbers in this order, interest rate,
payment amount,payment time 10, 15, 20, or 30 years, cost of loan. If you are looking at these
10 is best if you can do it. If you can't get a 15, 20, or 30 and pay it like a ten as much as you can.
Check on these things while at finance offices.
Are there any prepay penalties?
Will extra payments be applied to the principle?
Do they have twice monthly payment plans (handy if you are paid twice a month, and can cut your interest)
Here are some places I can suggest.
Online comparison. Interest comparisons Online Online help for Mortgage Shopping Mortgage Help Guides to Lenders
Local banker you are used to working with under these conditions. The Banker does not
bulk when you ask them for a Good Faith and Truth in Lending. That way you have
something to compare them to others with. Don't get rushed into it, remember that
no matter how good they make it sound you should take the time to shop around.
A. Ask them what they can do for you?
When you have the truth in Lending and good Faith in hand then you will
really know exactly what they can do for you.
B. Take the Truth in Lending and Good Faith plus a copy of your Report and make a file
with them in it.
C. Go see a Mortgage broker local.
Make an appointment tell them what you are looking for (purchase a home, How much, What your Income is,
anything else they ask other then stuff for Credit Report) Give that to them in
person at the office. It is not information you should put out over the phone.
D.Get your documentation in order! Bring it all with you, Taxes, Pay Stubbs, Ect.
E. Get recommendations from friends if they got a great deal it may save you time and money.
4. Start looking for a house.
a. Helpful places on the internet these are places to look for great real estate deals.
i. http://www.hud.gov/homes/homesforsale.cfm
ii. http://www.realtor.com/Default.asp?poe=realtor
iii. http://www.foreclosure.com/index.html
iv. http://www.homelistings-usa.com/
v. http://www.forsalebyowner.com/?PID=QG-NA
b. Local Newspapers, friends, family, go and ask if a house you really like is for sale.
5. Dealing with Realtors
a. Find one you feel comfortable with that is not selling the property you are looking at.
b. Ask what they charge for commission?
i. Ask if it is negotiable.
ii. Remember they are in this to make a living too. If they don't own the agency they may
not be able to negotiate. It may take a little time to get an answer.
6. Title Companies
a. Ask them for their rates. Ask them for references. Compare by reference and get
information from friends if you can. Closing can be a lot of hassle, make it as easy
on yourself as possible.
7. Get a house inspection before you purchase even if your loan does not require it.
Check the inspectors out in the phone book and see if you can find one that is very
thorough. Don't be afraid to ask them if they check the big stuff like foundations,
electrical, plumbing, flooding, and leaking. Ask if they have a form you can view or
download or they will email to you. Check them out with the Better Business Bureau.
8. Try to leave yourself a little room financially for any unforeseen disasters.
Savings Around the House
Window Coverings
Curtains, Drapes, Window Coverings
or Blinds on the inside can make a huge differece in both the summer and winter.
These don't have to be purchased new there are a few of them for sale occasionally
at thrift stores. One can also keep an eye out for sales on Widow Coverings.
Sometimes one can get them from people that are remodeling.
Other things that can be used are shutters that can be closed in story wheather though
it may be hard to find good quality ones that are going to be really effective.
Where I live when it storms we also have winds that are fairly strong so being able to
shut off that wind from the outside is a great idea. One also has to be there to
close them and open them.
There are some really wonderful pages on the web with idea's on how to save power
and I have included a few on window coverings in this edition.
Fresh is easy but not always inexpensive. Fresh fruits, vegetables and nuts are
easier some times of year then others. Because I live in the northern part of the
United States in a rich agricultural area I enjoy great fresh produce from local
farms through most of the summer. I also have a garden which helps a lot.
This month I want to look at buying fresh salad greens and growing fresh salad greens.
Buying first most supermarkets have them year round in good supply. They are expensive
both summer and winter but can be purchased year round in most parts of the country.
One of the ways to save on them is to buy in bulk. I have found that Costco and Cash
and Carry have great deals on large quantities. These large quantities are not always
practical for me to use up before spoilage occurs. I have solved this for myself
by using some of the extra to help out both at church and for sharing with some of my
friends that are going to college. This has brought me joy in two ways because I have
something to share and I also saved money in the process because I got more for my
dollar then I would have buying the little packages.
You can look up chains like Cash and Carry which mostly caters to restauants but has great
deals for the everyday consumer. This works especially well if you have friends or
family you can go in with on large items. My husbands family is close enough that
we can share with them when we have extra and they do the same for us.