4 Things You Shouldn't Do When You're Buying A Home
1. Don't Make a Major PurchaseYou've just found out your credit is A+. That's great news, because a new car would look fantastic in the driveway of your new home. But hang on--if you are depending on a mortgage to move in, you'd best wait until after closing to buy the car.An increase in your debt to income ratio reduces the amount of monthly income available for your mortgage payment. If you tack on a higher car payment, the bank might decide you cannot afford the home.
Using cash to purchase the car could also create a problem, since banks consider cash reserves when approving your mortgage. If you make a major purchase before closing, talk to your loan officer before you do it.2. Don't Change Jobs Unless It's NecessaryLenders like to see a consistent job history. They aren't usually as nervous if you change jobs within the same field, but it's better to stay put until the keys to the house are in your hand.3. Don't Give an Earnest Money Deposit Directly to a For Sale By Owner SellerYour good faith deposit should go into a trust account.
Some for sale by owner sellers don't understand that funds are to be applied to your expenses at closing. There are incidents about sellers who spent the deposit money prior to closing. When the transactions didn't take place for valid reasons--such as financing or repair issues, the buyers had to fight for a refund. Find an attorney or other neutral party who will hold the deposit for you until closing day and make sure your contract dictates what happens to the funds if the transaction doesn't close.4. Don't Let Your Emotions Take OverKeep a cool head during the entire home buying process, especially during and after an inspection.
Be realistic. No home is perfect, especially older homes. It's not unusual for new owners to take care of some repairs themselves. Don't let the seller's refusal to do a small repair kill the deal on a home you truly love. On the other hand, don't fall so much in love with the house that you'll buy no matter what needs to be done--unless you're absolutely sure you can handle it emotionally and financially.
Decide what type of repairs you can realistically tackle, then stick with the decision..
Suvadip Das is a research fellow in management and a web developer. Web design including keyword enriched articles is his passion. He works for Freelance Writer Organization and various websites including http://www.super-mortgages.com - More information on similar topics http://www.super-mortgages.com/First-Time-Home-BuyerHolistic Junction's Featured School of the Week: Clinic @ Nature's Atrium
This week, Holistic Junction is featuring the Clinic @ Nature's Atrium. Established in 1999, the Cinic @ Nature's Atrium is situated just Northwest of Grand Rapids Museums, Arenas and Botanical Gardens in secluded Howard City, Michigan. Accredited by AMTA, ABMP, and the IMA; Clinic @ Nature's Atrium offers amenities such as lab room and study room. Additionally, financing the cost of your educational...
Holistic Junction's Featured School of the Week: Clinic @ Nature's Atrium
Financing > Holistic Junction's Featured School of the Week: Clinic @ Nature's Atrium
No Money Down And High Loan-To-Value Home Purchases
Copyright 2006 Jason P Bertrand
In many cases it is difficult to obtain financing with little or no down payment. The lender will usually look for very high credit scores and a very thorough payment history. In some cases it may be easier than one would think. Twenty years ago it was always a rule of thumb that one needed to put down at least 20% in order to purchase a home. Last year over 40% of home purchases were made at 100% loan to value.
One reason that people avoid high loan-to-value loans is the fact that a lender will require mortgage insurance if the loan-to-value ratio exceeds 80%.
Loan to value is the ratio of the loan in comparison to the value of the home. For example:
Home Value = $100,000
Loan Amount = $80,000
Loan-to-Value ratio = 80%
In this example the loan to value ratio is 80% because the loan amount is 80% of the value of the home. Mortgage insurance is a policy that protects the lender in...
Financing > No Money Down And High Loan-To-Value Home Purchases
Business Finance Expert Series: "What Every Business Owner Needs to Know About Factoring"
HJ Ventures is proud to release its second Business Finance article in the "Factoring" expert series -What every business owner needs to know about factoring?http://www.hjventures.com/factoring/factoring-glossary.htmlFactoring is a promising way to stimulate the cash flow of a company. Its growing popularity can be gauged from the statistics that factor finance approximately amount to $70 billion in United States each year. In United Kingdom it represented a total volume of ?104.4 billion in 2002. However, before leaping on the factoring (http://www.hjventures.com/factoring/factoring.html) bandwagon it is important for the business owner to know what makes a business suitable for factoring?- Companies with sales up to and exceeding $250 million per year are and may be factored- Before making any decision the owner should...
Business Finance Expert Series: "What Every Business Owner Needs to Know About Factoring"
Financing > Business Finance Expert Series: "What Every Business Owner Needs to Know About Factoring"