Home Buyer Dealing With Finance.  As the events of the last few years in the real estate industry show, people forget about the tremendous financial responsibility of purchasing a home at their peril. Home Buyer Dealing With Finance.  Here are a few tips for dealing with the dollar signs so that you can take down that “for sale” sign on your new home.

Get pre-approved. Sub-primes may be history, but you’ll probably still be shown homes you can’t actually afford. By getting pre-approved as a buyer, you can save yourself the grief of looking at houses you can’t afford. You can also put yourself in a better position to make a serious offer when you do find the right house. Unlike pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. By doing a thorough analysis of your actual spending power, you’ll be less likely to get in over your head.Home Buyer Dealing With Finance.  

Choose your mortgage carefully. Home Buyers Dealing With Finance. Used to be the emphasis when it came to mortgages was on paying them off as soon as possible. Today, the debt the average person will accumulate due to credit cards, student loans, etc. means it’s better to opt for the 30-year mortgage instead of the 15-year. This way, you have a lower monthly payment, with the option of paying an additional principal when money is good. Additionally, when picking a mortgage, you usually have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower interest rate. If you plan to stay in the house for a long time—and given the current real estate market, you should—taking the points will save you money.

Do your homework before bidding. Before you make an offer on a home, do some research on the sales trends of similar homes in the neighborhood.Have your real estate agent provide recent home sells from the MLS. Consider especially sales of similar homes in the last three months. For instance, if homes have recently sold for 5 percent less than the asking price. Or are recent sells 5% over the asking price. In West Los Angeles there has been a scarcity of homes on the market.  A large number of homes receive multiple offers resulting in homes selling over the asking price. Always look for overpriced listings that have been on the market a long time. Maybe an opportunity to purchase the home at a reasonable price. Home Buyers Dealing With Finance