For the Home Buyer

This Post is directed information for a Home Buyer, but any information can usually be helpful for us all.
You first need to know your affordable price range, and then be pre-qualified or better be pre-approved for that amount of Loan. Most important- make sure that Loan amount makes sense to you in a Monthly payment -because everyone's circumstances are different. How much can you afford? The key items are the size of the down payment, interest rate, any monthly property fees, and the amount of the mortgage. Caution! You will need money to pay for closing costs, moving, appliances, household setup, and a reserve for family emergencies.
Now, start the property Hunt. Take your time, remember what appeals to you as a Buyer today will probably also appeal to buyers tomorrow. Okay, You've found it- your "dream House"! Now what? You make an offer by submitting a signed real estate offer to purchase with the type of financing you desire. ( this will become the sales contract once the Seller accepts). Always read and understand every detail, and any verbal agreements should be written into the contract.
Sales contracts differ from one area to another, but several provisions should be included in the purchase of real estate. These are:
1. Deposit "earnest money", usually 1-2% of the purchase price, deposited in escrow, and
applied as down payment at settlement
2. Contingency on Financing- Be specific about the total loan amount and the exact financing
terms.
3. Contingency on Inspection- You have the choice ( at your expense) to have a building
inspection.
4. Termites- You should have a written report at settlement stating the property is free and clear of any active termite infestation.( the area determines who pays for
this inspection)
5. Personal Property- Any items to be conveyed that aren't physically attached should be in
writing.
6. Repair work- A "pre-settlement walk-through inspection" should be made days before
settlement to determine if the major systems are operating, ie. Heating,
plumbing, etc.
7. Title Insurance- the buyer has the right to choose the title attorney or insurance
company, be sure and clear the company with your lender.
8. Closing and Occupancy Date- When you choose your settlement date "closing date"
Be sure to include an agrrangement with the seller in the event you can't
secure possession on the agreed date, such as a daily rent-back agreement
for "post-settlement occupancy"

Remember- shop smart for the right loan. You have the option of shopping for the best terms you can obtain. Generally, a mortgage acceptance requires 15-30 days for conventional, 30-45 days for VA and FHA from application to approval. In some cases, loans may be approved more quickly. Prosperity Mortgage Company is a Long and Foster and Wells Fargo Home Mortgage Company.

Some Questions you should ask most lenders.
1. Are both fixed-rate and adjustable mortgage loans available?
2. What is the interest rate?
3. What are the "points"?
4. How long can I "lock-in" the financing at the current interest rate?
5. What are the other fees a lender may charge me in conjunctin with my loan?
6. Are funds for a second mortgage available?
7. Is there a pre-payment penalty clause?
8. Is there an open-end? This clause in a mortgage allows you to borrow in the future for improvements or other purposes, up to the amount of principal you've paid off.
9. If you sell your house, will the buyer be able to assume your mortgage at the same interest rate?
10. Will the lender require mortgage insurance?

I hope this information will be a help to you- See you next Time!