DEAN GRAZIOSI: DEAN GRAZIOSI REAL ESTATE

You searched for months for that perfect first home to buy.  You and your realtor looked at everything from foreclosures to new construction.  Finally you found the one that made you say “I could live here the rest of my life.”  You put in your offer and it was accepted.   After the initial joy wears off you realize you need to get your ducks in a row so you can close.  Below are 5 tips that if followed will help you on the road to a smooth and on-time closing.

 

Get All Back-up Ready for your Mortgage Company.

 

While you were searching for your home your mortgage company most likely provided you with a list of items you will need to give them before you can close.  Grab that list and start gathering everything you need.  That list will include things like recent tax returns, pay check stubs, identification and recent bank statements.   As you gather them get them to the mortgage provider so they can look them over and make sure they are what they need. 

 

Get Your Inspection Done

 

Most offers can be rescinded in the first few days if something is found to be fundamentally wrong with your future home.   A good realtor will have someone they recommend you don’t have to use that inspector, but often times it is good to use someone your realtor is familiar with because they know they can trust them.

 

No big purchases

 

Most mortgage companies will require you to have enough money in your bank accounts to cover the down payment as well as a month or two of mortgage payments.  Even after you have shown them your recent bank statements it is a good idea not to spend much money because they may ask to look again the day of closing.  If you need to purchase something for the new home wait until after closing. 

 

Don’t Use Credit Cards

 

Don’t use your credit cards for anything until after you are completely closed.  Using your credit cards can affect your overall credit score which could lead to your mortgage provider raising tour interest rate or worse.  Most mortgage companies will run your credit report the day of the closing to make sure you are still within the window of acceptance.  Anything you need should wait until after the closing.

 

Don’t Take Any New Lines of Credit or Open New Loans

 

It may be tempting to take a new line of credit to purchase the new floors you need for your new home, but wait until after the closing has been completed.  Opening a new line of credit or getting a new installment loan can lower your credit score and also increase your liabilities.  Both of which can cause your mortgage company to cancel the loan or raise your interest rates.  Anything you need for the new home should wait until you have completed closing. 

Today, one out of every 196 homes in the country is faced with defaults and foreclosure. There are very few people who would not be interested in the news related to real estate. It matters to know the state of affairs of the real estate market. Since there are many who are looking to buy homes, rent out space for themselves and the family. Then there are other class of people who want to sell there properties or rent their homes. For both, the buyers and the sellers, it is important to understand the market condition and act accordingly.

The sellers these days aren’t a happy lot. The rapid decline of job opportunities coupled with the job cuts going around hasn’t helped the buyer population. The number of buyers has reduced both for the new homes or resale homes, due to the fear of financial commitments and how the future holds.

There has been a slight improvement in buying trends for the past few months, however. Add to this the fact that many properties have been put under the foreclosure bracket of the banks, which has pulled down the prices of the resale properties, since the banks would sell these properties in an auction. Though the resale numbers have picked up considerably, the value is not coming in.

The buyer still remains cautious owing to the spate of foreclosures – some of the highest numbers in the history. The unemployment rates, which touched 11 percent, is a further set back to many who were thinking about buying a home. Now with a depleting financial situation they would definitely be thinking of a job more than a home. It would also mean that many are moving out of their ownership homes and taking up rented places where the commitment is lower.

There is some help to the buyers in terms of the very attractive mortgage interest rates and tax incentives by the federal government for the first time homeowners. However, significant growth will only happen when the job market improves, leading to stability and more faith from the population at large.