Buyers

- Look at potential properties from a seller’s point of view, considering both positive and negative features.

- Remember the following essentials:

• Use a professional inspector to inspect the property
• Schedule a second walk-through to be held within 24 hours of closing
• Make certain no changes have been made that were not agreed to in the offer
• Include mortgage and inspection contingencies in your written offer

Using a licensed real estate agent will help you easily navigate through this process.

Please contact us if you need a qualified real estate agent and we will help find you an agent that best meets your needs.

You should hire a licensed, professional inspector to conduct a thorough inspection…get recommendations and check their services and reviews.

You will want to be clear on exactly what is and isn’t included in the inspection price. Will they test for lead paint? How about asbestos in the ceiling tiles? Is that part of the basic inspection or will it cost more? The price, though you will pay it, is probably the least of your concerns. Most inspectors are in a similar range of $400-$700 anyway and any fluctuation is a small price to pay for what you will get.

Early in the home buying process start researching inspectors and have at least a couple in mind, especially if the market is busy. You’ll need to be sure you can get an inspection scheduled within your contract timeline, so if your first choice isn’t available, you need someone waiting in the wings.

Questions and Answers on Home Inspections

Berkshire Hathaway HomeServices Landmark Properties recommends Detection Inspection.

Contact: Scott Bachman

[email protected]

(828) 428-8505 or (704) 530-7050

FIXED-RATE LOANS

The fixed-rate mortgage is the most popular mortgage program in use today. Fixed-rate loans offer the borrow a fixed interest rate for the life of the loan, typically 15 to 30 years. Borrowers have peace of mind knowing that their monthly payment will not change over time. Conventional fixed-rate mortgages have underwriting requirements established by Freddie Mac and Fannie Mae and require certain down-payment and debt-to-equity ratios to qualify. Fixed-rate loans are especially attractive to buyers who plan to stay in their home for more than a few years.

ADJUSTABLE-RATE LOANS

With an Adjustable-Rate Mortgage (ARM), the interest rate changes periodically, and payments go up or down accordingly. Rates are tied to an index that reflects the cost of money at any given point in time. Generally, lenders charge a lower initial interest rate for the ARM than for the fixed rate mortgage. If you are expecting interest rates to decrease in the future, or if you are trying to maximize your purchase power today knowing your income will rise in the future, then this loan may be right for you. Adjustable-rate loans are attractive for buyers who expect to be in the home for a short period of time.

FHA AND VA LOANS

The Federal Housing Administration (FHA), offers loans for low-to-moderate-income home buyers. FHA loans have lower down payments and have relatively easier requirements than conventional fixed-rate mortgages. FHA mortgages have no income restrictions and even those with lower credit scores may be considered. Past bankruptcy does not necessarily disqualify borrowers from using this program!

In addition, the Department of Veterans Affairs (VA) offers a zero-down mortgage program. To take advantage of this program, borrowers need to be among those listed as veterans and service personnel in the U.S. military. One of the biggest benefits of this program is that it eliminates the need for private mortgage insurance!

LOCAL HOMEBUYING PROGRAM

There are often many state and local programs available. These programs offer down-payment assistance and programs for local home ownership.

REO properties (Real Estate Owned by the Lender) can be a great bargain for buyers. These sales are also referred to as bank-owned sales. They are properties where the lender has taken possession with the intention of selling the home.

There are some risks associated with purchasing an REO home. Banks/lenders are not required to provide a property disclosure on these properties which means that the buyer is not advised of any issues the home may have such as leaks, termites, water damage, etc. Unfortunately, these homes have often been vandalized and items such as wiring, piping and appliances may be missing. They often require plenty of TLC before the new owner can occupy the property; therefore, having an experienced agent to guide you through the appropriate inspections is invaluable.

If the previous owner financed the home through a government-backed loan, then they are responsible for selling the home. Government-backed loans are those backed by the Department of Housing and Urban Development (HUD) or the Department of Veteran’s Affairs (VA). HUD homes are sold via public auctions and bids must be submitted by an agent authorized to sell HUD homes in that area. Homes sold by Fannie Mae and Freddie Mac fall into this category as well.

If you are interested in purchasing an REO home, please contact us and we would be happy to review your needs and work with you throughout the process.