Home buyer resolutions for 2007
Excerpted from article by Ilyce R. Glink - Inman News.
What’s coming up for 2007? Interest rates should continue at the current, historically low level although some mortgage industry observers are forecasting that the Federal Reserve Bank will lower the Federal Funds rate, and long-term interest rates will fall as well. There will be good deals on existing homes and perhaps even better deals on new construction.
In all, it should be a good year. If you’re planning to buy a home in 2007, here’s my annual list of New Year’s resolutions you should consider making:
1. Get my credit and finances in order.
If you keep one resolution this year, choose to clean up your credit.
2. Get my credit in shape.
Put a lid on your spending, perform “plastic surgery” on your credit cards, and don’t max out any one card or your credit score will suffer. Don’t forget that good credit also means job stability.
3. Know how much I can afford to spend before shopping for a home.
Your lender will look at your income, debt, assets and liabilities, and come up with the maximum amount you can spend on a home. Once you know how much you can afford to spend, you’ll avoid making a common, heartbreaking, home buyer error: looking at homes you can’t afford to buy.
4. Know my neighborhood, and be comfortable with it, before I buy a home there.
Everyone wants to live on the best block in the best neighborhood. Unfortunately, that location may not be in your budget. Balancing affordability with location means you may have to compromise. Get to know the neighborhood and its residents inside and out before you buy.
5. Interview at least three brokers before hiring one.
Many buyers today opt to use buyer agents, or buyer brokers, who represent the interests of the buyer rather than the seller. One study showed that buyers using buyer agents or exclusive buyer’s agents paid 5 percent less for their home than those who use traditional agents. That’s $5,000 saved on every $100,000 spent.
6. Read and understand all documents before signing them.
Take the time to read all documents thoroughly. Ask an attorney or broker to explain things that don’t seem to make sense. It’s important that you understand what promises have been made and what warranties have been granted, and what implications these documents have for your personal financial and emotional well-being.
If you are looking for a realtor to represent your interests in Myrtle Beach, contact Barbara Chartier at 843-902-0204. She’ll look out for you!
