Archive for March, 2010

First Time Home Buying Tips for Getting Prequalified

Real Estate Advice | Posted by homesforsaleinminnesota
Mar 19 2010

Are you aware that choosing the right loan for your ideal property is a crucial step in any homebuying activity. But first, you must consider the fact that purchasing a new MN homes for sale requires prequalification and preapproval, and you actually need to have your credit report checked out. A detailed inspection of your financial circumstance or credit report may be done by a prospective lender while you go through the processes in prequalification and preapproval, but at the same time – you may want to check your credit report for errors from a credit bureau, for free.

Have your credit records immediately cleared if you notice any discrepancies in it and ensure that you keep intact all proof of communication with the credit institution. After that, you’re ready to approach the financial side of home buying; here are a few ideas for getting prequalified or preapproved for your first home:

1. Check the different mortgage programs through the Internet. There are many online resources where you can actually see the lists of current interest rates for various loan packages such as LendingTree.com and Bankrate.com. An initial step would be to look at some options or better yet, submit your personal information for sample or preliminary review. As soon as you have forwarded all the necessary information, a representative will contact and guide you for the remaining steps to follow.

2. Approach your area bank. The best authority from your area bank to ask help from are mortgage officers in case you want to get a prequalification letter or preapproval status. As the author of the book “100 Questions Every First Time Home Buyer Should Ask”, Ilyce Glink mentions, this process may be quite time-consuming compared to online processing. However, some people prefer the face-to-face communication and will be more comfortable going to the bank in order to get things started. However, you will be receiving the same type of service either way.

3. Transact using the telephone. Another option you may try is transact your loan prequalification over the telephone, instead of online or bank methods. Some lenders offer this kind of service and all you have to do is ask the local bank for the number so you can give or submit your personal details through the phone.

4. Try a national lender. National lending companies such as Countrywide home loans and Bank of America also offer online services and over-the-phone prequalification and preapprovals, giving you more options for your future loan. Visit these lending companies website to learn more about current rates and send in your information to become prequalified for your loan.

5. Try an aggregator website. If you can’t decide between different banks or financial institutions, use an aggregator site that compiles rates and services from multiple lenders and only requires you to submit your information once. Several options are available for you to choose from after you have submitted your info.

Ultimately, homebuyers need to get prequalified and preapproved for a Minnesota homes loan first before the actual process is done. Use any of the above resources to get the process started and get the best rates for your future mortgage.

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Things to Consider as a First Time Homebuyer

Real Estate Advice | Posted by homesforsaleinminnesota
Mar 01 2010

Finding the perfect home may take several months, and a first time homebuyer will greatly be aided in the home buying process by making a plan to sort through all the financing details, conducting research about the prospective neighborhood, and to finding a reliable real estate agent to work with. With a step-by-step plan or drafting up a checklist, you will be able to keep everything related to your search for the right home to purchase become organized and on track.

“The Home Buyer’s Question and Answer Book”, authored by Bridget McCrea, explains that it’s very important to create a plan both for your financial side, and in terms of what you want and need in your home. This means that when your plan for your new home, you have to make a budget analysis, and list down the amenities, rooms, themes of the home and other features that you would like your new home to have.

If you are a first time homebuyer, here are some essential items that you can include in your checklist or plan that will help you have an easier time with your home buying process:

1. List down the different housing types of your prospective neighborhoods. Each neighborhood has at least 5 to 6 different types and styles of housing. It is to your advantage to know what the various styles and classifications are, unless you are building a new structure.

2. Start reviewing online listings. Working with a good real estate agent will give you a strong idea of available properties, but you can do a lot of homework on your own. Don’t be afraid to review FSBO listings in the local newspaper, or jump on the Internet to search for properties in your area.

3. Learn about the home inspection process. Home inspections can be lengthy and fairly complex, but they are well worth the effort when you narrow down your choices of properties. Learn about the different stages of the home inspection, and don’t forget to create your own DIY home inspection checklist when you’re visiting several properties.

4. Use a scorecard to compare different homes for sale in a neighborhood. Design your own scorecard to rate and keep track of all the prospective homes for sale that you find or visit. Items that you can include would be the asking price, key benefits, drawbacks, number of rooms, accessibility to highways, and any other top priority items that will suit your requirements.

5. Decide upon your ideal location. Knowing the ideal location of your new home will greatly aid you in eliminating homes for sale that will be able to suit your requirements. You can conduct your internet search by typing in the state you wish to live in, and then placing in buy homes for sale. A few of the factors that you would have to take into account when deciding where to buy is the neighborhood’s proximity to your work, to schools, to parks or it’s access to public transportation. It is a good thing to be aware of these things because even if you don’t get to buy your new home in your desired locations, you will still get to find one that will adequately suit your requirements on the purchase of your new home.

6. Map out your budget. You can meet with a personal financial advisor at your local bank or credit union for some budgeting advice, or you can draft up your own home budget to get a strong idea of what you can and can’t afford. Making a budget and then sticking with it regardless of how much you are preapproved for is a much more intelligent choice than waiting to ‘hear’ from your lender about your options from your lender.

Are you a new homebuyer looking for homes for sale in Minnesota? Searching online using the Minnesota MLS is an excellent way to find the kind of home you’re looking for.

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