Tips to Make Buying a New Home Smooth

The housing market has changed over the last two years and purchasing that new home is now a bit harder than before. My family just purchased a second home and here are the tips I can share to make your real estate nightmare a dream.

1. Check your credit score and rating. There are numerous online sites that provide credit reports and scores for a small fee. Be careful when choosing the companies who claim service is free of charge. Many companies ask for a credit card number and then bill a yearly fee of $9.99 for a new credit report each year, without you requesting it. However, checking your credit reports yearly is always a good idea, so joining http://www.creditreport.com can be helpful in other ways.

2. Make sure to decide before home searching begins if the family needs a stick home, or manufactured home, as the financial institutions for the purchase of a manufactured home are few. This year only Bank of America and Wells Fargo Bank are lending against manufactured homes.

3. Be prepared to pay for home inspections, well inspections and certification, septic tank cleaning (if not on sewer), appraisal cost, closing costs, filing fees, and title fees.

4. Have a set amount chosen for earnest money; this is usually around $1,000.00 to show the seller you are serious about the purchase of their home. However, keep in mind that some financial institutions, sellers, and real estate agents will ask for a higher earnest payment.

5. Obtaining financing can take anywhere from 30 days to 5 months depending on who the financial institution is. Make sure to have a good loan officer, a good feeling about that loan office, and open communications with the loan officer.

6. Choose a good real estate agent to search for that special home, make sure they clearly understand what the family seeking for their new home. Be sure to have open and continual contact with the real estate agent. If the home, you choose to purchase is listed with a different agent than yours, the listing agent and your agent will share the real estate portion of the sale.

7. As the loan officer up front what documents will be required of you the buyer to obtain funding for the purchase. The last two years tax forms (in full), including w-2's is required, at times it may be necessary to provide a letter explaining why the family wishes to move from their present home (this usually happens when buying a second home). If you are retired a letter from the retirement office showing that funds will continue for two years is necessary (the bank can usually obtain this), a signed form for them to seek information from the IRS will be necessary. If employed, evidence from the employer that you are working for them such as pay stubs and letters may be necessary. Having the information on what will be needed by the financial institution will make things move more quickly when seeking funding.

Resources:

Personal Experience

Bank of America

Duke Warner Realty