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Home sellers don't just pick up the phone and call you
with a maintenance-free home with an excellent mortgage.
Reading available real estate information
materials, talking to friends and experts, and investing
your time wisely by viewing a variety of homes on the market and
researching the schools & neighborhoods is the best way to
realize the American dream.
Tip #2: Make
A Plan And Get Pre-Qualified
Carefully examine each important decision and think it through.
Develop a well organized plan for making your Olathe home purchase.
Focus on the most important factors. Create file folders on house
hunting, Olathe home financing, service providers, etc. Get
yourself pre qualified for a loan so you can determine the amount
of home you can afford. Getting pre qualified also increases your
chances of closing a deal, The seller is more likely to accept an
already funded offer than one from a home buyer who still needs to get
a loan. Lenders usually employ the 28% formula (your monthly
mortgage must not exceed 28% of your monthly income) in approving
your loan. Plan your actions and get pre qualified, this reduces
the chance of panic situation and allows you seize opportunity when it
is presented. A thorough plan will save both time and money!
Tip #3: Value,
Value, Value
The days of
10-30% annual appreciation still exist. Home buyers in the 1990's
benefited tremendously from what seemed like ever appreciating Olathe
home prices, now we are seeing growth along the same lines. Nowadays,
you're looking at stable growth while guarding against the
possibilities of falling prices, low interest rates and corporate
layoffs that can dramatically affect your Olathe home values. The
classic rule of buying the worst house in the best neighborhood still
applies. If you buy with an eye towards improvement, you can customize
the Olathe home to fit your needs. The saying, "make money buying a
home, not selling one," should keep you focused on the long-term
importance of the purchasing price.
Tip #4: Create
A Top 10 List of Amenities
When shopping
for a home, list the features (fireplace, fenced-in yard, new
appliances, etc.) that are most important to you in deciding on
which home to buy. Establishing "your criteria" early on will save
time shopping for inappropriate Olathe homes and may keep you from
buying a Olathe home on a whim -- for example, because of a circular
stairwell -- that doesn't meet your fundamental requirements. As
detailed in Tip #3, your top reason for buying a home should be the
value you are getting. Some of your top 10 amenities should logically
be sacrificed if an incredible value is available.
Tip #5:
Fixed vs. Adjustable Rate Mortgages
Which type of
loan fits your particular needs? Are you a first home buyer or are
you moving to a larger home? If you're planning to own for a short
time, an ARM may be the best type of loan. If you're shopping
for your dream Olathe home or you plan to raise a family, a fixed rate
mortgage may be more suitable for you. If you choose an ARM, the index
should be based on the Cost of Funds Index if rates are
increasing, and Treasury Bills if they are decreasing. The COFI's
are less volatile over time than T-Bills. Find out the what the
teaser rate is and what the real rate would be.
Whichever loan
you choose, make sure that you scrutinize all the closing costs. If
you are required to have a mortgage escrow account and private mortgage
insurance, make sure you understand the terms and cancellation
procedures. Also, make sure there are no prepayment penalties so that
you can utilize an accelerated mortgage plan. A good mortgage reduction
plan can save you tens of thousands in interest costs, and shorten your
loan term, with only small extra principal payments. If you experience
negative changes in your job, health, or marital status, you can revert
to the standard payments in your mortgage contract.
View Olathe Homes for Sale with Photos
Tip #6: Sign
A Contract That Protects You
Make sure that
the contract you put on a house allows you to arrange financing,
inspect the Olathe home and negotiate any problems that you uncover.
Ensuring that the contract you sign will minimize potential legal
battles will let you swim in your new pool with your family and
neighbors instead of with the sharks.
Tip #7: Put
Yourself In The Seller's Shoes
You are about to
make one of the most important decisions that will affect both your
life and the life of the seller. If you take time to understand the
reasons the seller bought the Olathe home, their reasons for selling,
and the home improvements they have or have not made, you'll be in a
better position to evaluate the home and negotiate a better deal.
In the end, the home buying process excludes the professionals and
comes down to the individuals buying and selling the Olathe home. A
closer look at the seller may help you in deciding whether and for how
much to buy a particular Olathe home.
Tip #8: Develop
A Mortgage Shopping Chart
One of the biggest
decisions to make before putting a contract on a Olathe home is how to
finance the purchase. There are 10,000 lenders competing for your
mortgage business. The days of simply walking into the community bank
and negotiating with the loan department manager are over. Today, you
can apply for a loan over the Internet or even use a mortgage broker to
shop for your loan with hundreds of lenders. When choosing a
lender, you want to avoid apples to oranges contrasts by comparing
fixed rates to fixed rates, not fixed to ARM's. Create a chart that
lists different types of loans, fees, and at least five mortgage
providers (including a mortgage broker).
Tip #9: Get
A Quality Home Inspection
Although it is hard
to believe, more people pay for inspections before buying used cars
than when making the biggest investment of their lives -- their homes. Paying
for a qualified home inspection before you buy a Olathe home isn't just
spending "a little extra" for peace of mind; it's absolutely essential
for anyone who doesn't want to spend thousands of dollars for repairs.
Tip#10:
Peace of Mind: Olathe home Protection
Plans
To protect both
yourself as a buyer, as well as the seller, it is a good idea to
purchase a home protection plan. What exactly is it?
A home warranty, or home protection plan, is a
service contract, normally for one year, which protects homeowners
against the cost of unexpected repairs or replacement on their major
systems and appliances that break down due to normal wear and tear.
A negotiable contract between the buyers and sellers which do not
overlap or replace Olathe homeowner's insurance policy, this type of
warranty can save the new Olathe homeowner lots of headaches, as well
as put seller's fears to rest. The warranty covers mechanical
breakdowns, while insurance typically repairs the related damage, for
example: if a hot water heater burst and destroyed a wall in your home,
the warranty would repair the water heater and your insurance would pay
to fix the wall.
Information
provided by The American Homeowners Association, Copyright© 2002
Olathe Real Estate services for buying and selling offered by the
Realtor below:
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