The realty business can be challenging and cannot be described, no matter what certain “experts” of your friends tell you, as an easy earning business. Top real estate agents know this and that’s why they know their market research, law knowledge and connections count in sealing the deal and selling the house. How to protect yourself from overpaying and being scammed when buying the house?
If you plan on buying a house and you don’t know how much you can spend, nor what is the actual price of that realty that you’re interested in, the chances are you are going to spend more than you have on a house that doesn’t worth that much. If you follow these simple steps, you will be ready to make a safe purchase knowing that you spend the right amount of money on buying the house that you want.
Pay a visit to your bank and check how much you can spend actually by checking your credit rating. There is nothing worse than setting the price with the owner and figuring out latter that credit is on hold or that you have similar problems that are stopping you from making the purchase.
The last thing you want to do is give more than the actual price of the realty. Call your mortgage broker or contact your bank to get an appraisal. They can get the comparables and check the realty prices in the neighborhood establishing the exact price of the realty you are interested in. After this, you will know if the owner is asking for more, and you can just walk away if he chooses not to lower the price.
Choosing the location.
If you didn’t figure out already what neighborhood you and your family is going to live in there are a couple of things in mind to have before you do. Take into consideration the available services in the vicinity, this means checking if there are malls around your future home, grocery shops, markets. Remember that this can affect the price of the realty, as you may try to lower it suggesting to the owner that the first grocery shop is 7 miles away.
Forget about conflict with a closing date.
Most of the mortgage brokers will explain to you that bridge financing approval option is available for approximately 30 days after the closing date. So even if the closing date is before your loan approval you can contact mortgage lenders to approve bridge financing in order to make your purchase possible even if you did not get the loan already. To avoid this, speak with your current lender before you even start to look for available realties. Knowing the dates and making sure they don’t over lapse is the best preparation you can have, avoiding embarrassing situations this way of not having the money at the time of sealing the deal on the purchase.Read More