Karen Reeber's Real Estate Blog | Farmington Hills MI | First Time Home Buyers, Short Sales, Housing Market, Relocation, Foreclosures, Homes for Sale

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Karen Reeber
REALTOR®
    Years of Experience: 35+

    ABR®: Accredited Buyer's Representative
    CRP: Certified Relocation Professional
    CRS: Certified Residential Specialist
    RE/MAX Lifetime Achievement

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Buy House

TO INSPECT OR TO SAVE THE MONEY ON YOUR FARMINGTON HILLS HOME PURCHASE?

Monday, July 13th, 2009

Don’t even try to scrimp on this cost if you are purchasing a new/used home. This is probably some of the best money that you will spend in purchasing your home. It can save you heartache and future hardship. Getting a good qualified inspector is imperative in beginning your inspection process. After you have found the home of your dreams, the last thing you want it to become is a nightmare or money pit. There are so many possibilities of hidden issues that a good inspector can uncover so you know exactly what you are getting into.

Sellers are supposed to fill out a “seller’s disclosure” letting the prospective purchaser know what the problems are that currently exist in the property. However, there are some things that the sellers may not even know about. How many times do sellers go up in their attic to check and see if there is mold?

How many times do sellers put moisture meters on the areas that they think might have water issues? Many sellers truly do not know all of the problems that might be lurking about in the home that they are living in.

Most inspectors will also let you know how to maintain certain areas of the home so that you can keep from having problems in the future. This knowledge alone can be priceless if it keeps the present roof from having to be replaced in 3 years instead of 6 or having windows last longer than they could otherwise.

A good inspector will go through the home thoroughly explaining along the way and answering your questions as he goes. You should also get some type of written report so you have that to review once the inspection is completed.

After moving in, it is a good idea to keep notes of all the maintenance that you do; so, you have a timely record of what things are coming up to be done and what things you have already taken care of and no longer have to be concerned about.

Yes, home ownership is wonderful; but, it is also a responsibility. One, that if you take seriously, will be to your advantage in the years to come.

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Home Buyers Be Prepared

Tuesday, March 31st, 2009

As a home buyer today it is so very important that you have done your research/homework with whatever avenue that you are using to purchase your new home. In other words, if you are going to have to finance your property, you should have spoken to a mortgage/bank representative and gotten, at least, a pre qualification letter, at best, a pre approval. If you are going to be paying cash for your purchase, you will need to show proof of that cash. If you are going to be getting money from someone else to pay cash for your new home, then you will have to have proof of funds from that party. You should know up front just how much that cash funding will be.

Many buyers today are thinking that because the housing prices are so low, that the mortgages are easier to obtain. This is not the case at all. I read an article over the weekend that actually stated that the Mortgage Bankers Association estimates that about half of all mortgages are being turned down. Mortgage qualifications have gotten tougher. You can no longer just state your income without showing proof in the way of pay stubs, W-2′s and/or tax returns. You must have stable employment; and, your credit score has to be higher than in the past to qualify you for today’s mortgages.

Funds used for your down payment can either be a gift, as in the case of an FHA mortgage or at least a 20% down conventional mortgage. However, the lending institution will require proof of where the funds came from along with a gift letter from the giver. Also, there are many cases where the buyer does have to have at least a certain percentage of their own money involved in their transaction; and, that money has to have an acceptable paper trail.

Getting a mortgage is a much more complicated process today; but, if you have the right frame of mind, follow the instructions given to you by the lender and have the patience to do what is necessary, the end goal will be obtaining your mortgage to purchase your new home.

It is never too soon to seek out mortgage counseling if you are thinking of a purchase in the future. The more prepared you are the better your buying experience will be all the way around.

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Considering Mortgages as a Home Buyer

Tuesday, February 3rd, 2009

One of the most important first steps that Farmington Hills home buyers should take today is contacting a mortgage representative and getting pre-approved for their Farmington Hills home purchase. The mortgage representative can answer many questions for Farmington Hills home buyers. One of the most important questions should be, “What can I Afford?”. Sometimes home buyers have certain monthly payments in mind. By speaking with a Farmington Hills mortgage representative, these home buyers will find that the reality of interest rates, home prices, property taxes, and insurance for the home either support or deflate their thoughts/ideas on being able to afford a Farmington Hills home with appropriate monthly payments.

Rather than wasting time searching for Farmington Hills homes they may not be able to afford, home buyers are much better off spending their initial time with the mortgage representative finding out accurate information before ever walking into a home. This is true for the first time Farmington Hills home buyer and the more experienced home buyer.

The second time/third time Farmington Hills home buyers may be in for surprises depending on how long it has been since their last purchase. The Farmington Hills rates today could be better or worse and their credit could be better or worse. One thing that is definitely better today are the Farmington Hills housing prices. Home buyers may find that they are able to afford a much larger Farmington Hills home with many more amenities than the one they previously bought for a similar or slightly higher price.

Your Farmington Hills real estate agent will have recommendations for good and reputable mortgage representatives. Home buyers do not want to get to the closing table only to find out that the Farmington Hills mortgage company and/or representative that they chose to work with is no longer in business and cannot fund the loan. In tumultuous financial times like these, home buyers need to know that the Farmington Hills mortgage company they are dealing with is not facing extinction.

As a home buyer, you also want to make sure that the closing costs you are being charged are not out of line with the average industry rates/charges. You probably don’t need to pay extra points unless that is your choice. Farmington Hills home buyers need to have all of the costs spelled out and disclosed clearly at time of initial inquiry with a lender. You are more than welcome to shop around to see what other institutions are charging, not paying fees for a quote. Most of the institutions offer competitive rates and costs as they want to secure new business.

Need a Farmington Hills mortgage referral? Let me know…

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It’s a Great Time to Buy a House!

Friday, January 23rd, 2009

Everyone is talking about how bad the real estate market is and how troubled the economy is. The truth of the matter is that this is really a GREAT time to buy a house in Farmington Hills if you are in the financial position to do so.

Farmington Hills’ prices are at historic lows and what you can get for your dollar today is fantastic! Interest rates are also at all time lows making this a win-win situation when buying a house in Farmington Hills. I used to own several Farmington Hills rental properties and was able to get them at very good prices. A few years back I was thinking that those opportunities were long gone. Well, guess what? Similar opportunities have just presented themselves again.

This is a great time for Farmington Hills investors to get their feet wet and test their landlord skills. You’re seeing money rapidly dwindle in many traditional investments (such as savings accounts, mutual funds, stock market, etc.). Why don’t you invest in buying a house in Farmington Hills and watch your investment gain momentum once the market/economy turns around. What I see in the Farmington Hills rental market is encouraging for those investors looking to buy a house and rent while they wait for an opportune time to resell at a profit.

The government is offering up to a $7500 incentive for the first time home buyer making their first purchase even more meaningful and profitable (check with your accountant to see how this pertains to your individual financial situation). Some of our Farmington Hills first time home buyers are astonished at what the money can purchase. They are seeing themselves buying houses in Farmington Hills that are much larger and newer than they thought possible.

Truly, it is not a great time to sell in Farmington Hills. However, if you own a home there are alternatives to selling right now; and, these alternatives can free you to buying a house and enjoy it before selling your current home in Farmington Hills.

Don’t let the naysayers ruin your hopes and dreams of buying a home in Farmington Hills. If you are interested in investing in real estate, above all else, make sure you use an agent who is experienced to help you with your purchase – jump in to this buyers market and be pleased with your investment!

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