You may have heard stories of people finding spectacular foreclosed homes for extreme bargains, or perhaps you’ve heard of someone taking a risk on a foreclosure just to get burned with serious repair bills. 

Everyone has their own opinion of foreclosures, but the reality is that they are just like any other real estate deal. Buyers who don’t do their due diligence have a much greater chance of regretting their purchase later on.

So, what is so different about a foreclosed home? Well, it depends on what stage of foreclosure the home is in. The three stages of foreclosure are: Read more

Whenever you buy a home, many pieces must come together for the property to be appraised, sold, and transferred to a new owner. While you may only communicate with your realtor and a representative from your lender, many professionals are working behind the scenes to make sure the home buying process goes smoothly. Closing costs cover all the fees these professionals charge for their services.

Since closing costs is a blanket term that covers a variety of different fees and charges, there’s no way to give someone a definite answer as to how much their closing costs will be until they actually close on the property and sign all of the required documents. However, lenders do try to be transparent about estimated closing costs by providing all mortgage applicants with a Loan Estimate (formerly known as a Good Faith Estimate) a few days after submitting an application. This Loan Estimate will list all the expected closing costs associated with the prospective mortgage loan. The Loan Estimate is the best tool available for estimating your closing costs so you can budget appropriately. Read more

Selling your home can be very overwhelming and confusing. In addition to navigating the various laws and deadlines, there’s also a completely new language to learn. When you first speak to a realtor or start researching selling your home on the internet, you may be overwhelmed with all the jargon. If you decide to go with a realtor, they will probably present you with an “Exclusive Right to Sell” contract during one of your first meetings. Before you sign anything, you need to know exactly what that means.

What is an “Exclusive Right to Sell”?

When you sign an “Exclusive Right to Sell” contract with a realtor, you’re agreeing that only the realtor can market, promote, and sell your home until the contract’s end date. No other agent or broker can list, promote, or market your home, and all buyers must go through the exclusive agent. This also means that they get paid no matter who brings in the buyer for the house.  Read more

Buying a home can be a complicated process, but there are things you can do to ease some of the stress. Preparation for purchase should begin well before you ever look at a potential property. Important things to consider when purchasing a new home include crime rates, school district reputations, commute times to work or school, availability of public transportation, HOA fees, and, of course, how much you can afford. Obtaining a mortgage pre-approval is the best way to estimate how much you can finance for a new home.

Know Your Purchase Power

Determining your budget can be difficult if you plan to finance a purchase. Without knowing the exact term and interest rate you’ll be paying, you can’t accurately calculate the total purchase price you can afford. A mortgage pre-approval letter will tell you what a lender estimates they can finance based on your background and credit history. You’ll need to provide the lender with some detailed information about yourself to obtain the pre-approval, including your income figures, credit report and score, and employment history. You won’t have to worry about falling in love with a home you cannot afford as long as you stick to the pre-approval letter’s limit. Read more