Buying Your Snohomish County Real Estate Home
When buying a home, you can learn from the knowledge and skill of a
Real Estate Agent.
Buying a home is probably the biggest investment you will make, with
long-term financial ramifications. It calls for many informed
decisions and for good advice from a real estate professional.
What can a Real Estate Agent do to help you buy the right home for
you?
They will help you determine how much home you can actually afford.
Often, they can suggest additional ways to accrue the down payment
and explain alternative financing methods. They can also introduce
you to a mortgage counselor and arrange to have you "pre-approved"
which can improve your negotiating position and enable you to
achieve your home-buying objectives faster and with less stress.
Providing "client-level services", they can work for you as a
buyer's agent and help negotiate the best price and terms for you.
Or, they can serve as a seller's sub-agent (or disclosed dual
agent), acting as a liaison between you and the seller to present
offers and counteroffers until an agreement is reached.
They will help you work out a realistic idea of the home best suited
to your needs - size, style, features, location, accessibility to
schools, transportation, shopping, and other personal preferences.
They have access to a listing of all available homes in the
multi-list system, can evaluate them in terms of your needs and
affordability, and will not waste your time showing you unsuitable
homes.
They can often suggest simple, imaginative changes that could make a
home more suitable for you and improve its utility and value.
They can supply information on real estate values, taxes, utility
costs, municipal services and facilities, and may be aware of
proposed zoning changes that could affect your decision to buy.
Although the law does not normally require an attorney to review
documents or oversee real estate closings, they can provide you with
a list of law practitioners to choose from if you would like to use
the services of an attorney.
They can help familiarize you with the closing process and they will
obtain closing figures in advance of closing for your review.
They can provide you with a list of qualified home inspectors, pest
inspectors, surveyors, and help to coordinate inspection
appointments.
Top 10 Tips to Successful Northwest Real Estate Home Buying
Tip #1: Research Is
The Key To Discovery
Home sellers won't call you with an offer to buy a maintenance-free
home with a wonderful mortgage. You have to find the gems yourself!
Only by reading available materials, talking to friends and experts,
and spending time looking at different homes, schools, and
neighborhoods will you end up with your American dream. Avoid the
nightmares by learning how best to buy and maintain a home.
Tip #2: Make A Plan And Get Pre-Qualified
Every important decision needs to be clearly thought out. Developing
a home buying plan can help you focus on the important factors and
organize the entire process. You may even want to use a binder with
sections on house hunting, home financing, service providers, etc.
Loan pre-qualifying helps you determine the home price you can
afford and presents you as a genuine prospect to the seller. A
lender typically uses the 28% formula (your monthly mortgage can't
exceed 28% of your monthly income) in approving your loan. Planning
your actions and getting pre-qualified will keep you out of the
panic mode and allow you to take advantage of opportunities. A
thorough plan will save both time and money!
Tip #3: Value, Value, Value
The days of 10-30% annual appreciation have passed. Homebuyers in
the 1970's benefited tremendously from what seemed like ever
appreciating home prices. Nowadays, you're looking at slow growth
while guarding against the possibilities of falling prices,
skyrocketing ARM rates and corporate layoffs that can dramatically
affect your home values. The classic rule of buying the worst house
in the best neighborhood still applies. If you buy with an eye
towards improvement, you can customize the home to fit your needs.
The saying, "make money buying a home, not selling one," should keep
you focused on the long-term importance of the purchasing price.
Tip #4: Create A Top 10 List Of Amenities
When shopping for a home, list the features (fireplace, fenced-in
yard, new appliances, etc.) that are most important to you in
deciding on which home to buy. Establishing "your criteria" early on
will save time shopping for inappropriate homes and may keep you
from buying a home on a whim. As detailed in Tip #3, your top reason
for buying a home should be the value you are getting. Some of your
top 10 amenities should logically be sacrificed if an incredible
value is available.
Tip #5: Fixed vs. Adjustable Rate Mortgages
Which type of loan fits your particular needs? If this will be your
first home or a "transitional home" -- one you plan to own for a
short time, an ARM may be the best type of loan. If it's going to be
your dream home or one you plan to raise a family in, then you may
want the stability of a fixed rate mortgage. If you choose an ARM,
the index should be based on the Cost of Funds Index if rates are
increasing, and Treasury Bills if they are decreasing. The COFI's
are less volatile over time than T-Bills; make sure the teaser rate
is understood and what the real rate would be.
Whichever loan you choose; make sure that you scrutinize all the
closing costs. If you are required to have a mortgage escrow account
and private mortgage insurance, make sure you understand the terms
and cancellation procedures (your Real Estate Agent has publications
to assist you). Also, make sure there are no prepayment penalties so
that you can utilize an accelerated mortgage plan. A good mortgage
reduction plan can save you tens of thousands in interest costs, and
shorten your loan term, with only small extra principal payments. If
you experience negative changes in your job, health, or marital
status, you can revert to the standard payments in your mortgage
contract.
Tip #6: Sign A Contract That Protects You
Make sure that the contract you put on a house allows you to arrange
financing, inspect the home and negotiate any problems that you
uncover. Ensuring that the contract you sign will minimize potential
legal battles will let you swim in your new pool with your family
and neighbors instead of with the sharks.
Tip #7: Put Yourself In The Seller's Shoes
You are about to make one of the most important decisions that will
affect both your life and the life of the seller. If you take time
to understand the reasons the seller bought the home, their reasons
for selling, and the home improvements they have or have not made,
you'll be in a better position to evaluate the home and negotiate a
better deal. In the end, the home buying process excludes the
professionals and comes down to the individuals buying and selling
the home. A closer look at the seller may help you in deciding
whether and for how much to buy a particular home.
Tip #8: Develop A Mortgage Shopping Chart
One of the biggest decisions to make before putting a contract on a
home is how to finance the purchase. There are 10,000 lenders
competing for your mortgage business. The days of simply walking
into the community bank and negotiating with the loan department
manager are over. Today, you can apply for a loan over the Internet
or even use a mortgage broker to shop for your loan with hundreds of
lenders. When choosing a lender, you want to avoid apples to oranges
contrasts by comparing fixed rates to fixed rates, not fixed to
ARM's. Create a chart that lists different types of loans, fees, and
at least five mortgage providers (including a mortgage broker).
Tip #9: Get A Quality Home Inspection
Although it is hard to believe, more people pay for inspections
before buying used cars than when making the biggest investment of
their lives - their homes. Paying for a qualified home inspection
before you buy a home isn't just spending "a little extra" for peace
of mind; it's absolutely essential for anyone who doesn't want to
spend thousands of dollars for repairs.
Tip#10: Peace Of Mind: Home Protection Plans
To protect both you as a buyer, as well as the seller, it is a good
idea to purchase a home protection plan. What exactly is it? A home
warranty, or home protection plan, is a service contract, normally
for one year, which protects homeowners against the cost of
unexpected repairs or replacement of their major systems and
appliances that break down due to normal wear and tear. A negotiable
contract between the buyers and sellers which does not overlap or
replace homeowner's insurance policy, this type of warranty can save
the new homeowner lots of headaches, as well as put seller's fears
to rest. The warranty covers mechanical breakdowns, while insurance
typically repairs the related damage. For example: if a hot water
heater burst and destroyed a wall in your home, the warranty would
repair the water heater and your insurance would pay to fix the
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Owning Your Home 
