Buyers' Tips
Before you start looking for a home you should
ask yourself a few questions.
- Where do you want to live?
- Do you want to be close to schools, shopping, or
work?
- What kind of house would you like (need)?
- Are you looking for a particular style?
- How many bedrooms and bathrooms do you want?
- Do you want a yard?
- How much house can you afford?
- Have you consulted a mortgage lender to determine the size
of the mortgage you would qualify for?
Here are a few tips to help you
get organized:
- Check your credit report and make sure the information is
accurate. If you find any errors take steps to correct them immediately.
- Start saving money - you'll need to have cash on hand for a
down payment and closing costs.
- Don't incure any additional debt.
- Pay down your credit cards - and don't apply for any new
ones.
- Don't make any major purchases on credit - buy furniture, a car
etc.
- Contact DAN JUNGCLAS, YOUR
REALTOR. He can help you determine how much you can afford, and can provide
you with information on homes that may interest you. He will also help you
complete the necessary forms and documents when it comes time to make an
offer.
Why you should work with
DAN
JUNGCLAS AS YOUR REALTOR.
Working
with
DAN JUNGCLAS AS YOUR REALTOR to buy your home is a good idea for several
reasons:
- He is familiar with the process of buying a home and can
explain things to you.
- He can easily access information on all properties listed for
sale by Realtors in your area.
- He can set up appointments for you to see homes that interest
you.
- He will help you complete all the necessary paperwork when it
comes time to make an offer.
- He will help you arrange financing.
- He will be at closing to answer your questions and make sure
everything runs smooth.
- He will make the process much more efficient since searching
for your dream home can be a time consuming experience.
A dditional
Topics To Consider:
How Much House Can You Afford?
Simply put, you can afford a house that costs as much as the
largest monthly mortgage payment you qualify for.
How much home you can afford
will generally depend on how large of a down payment you can put
down on a home and how much money you can afford to make on a
mortgage payment each month.
Most lenders will prefer to have you put a down
payment of at least 20% of the value of your new home. If you make
this large of an initial down payment, you will generally find that
lenders will give lower interest rates on your mortgage and also
not require you to purchase Private Mortgage Insurance (PMI) for
your new home.
The amount of money you can afford for your
mortgage payments should not exceed 28% of your gross monthly
income after all housing expenses are paid. Your lender and I will
assist you in determining the amount of money you should borrow and
how much you can afford to pay each month for your new home.
Be sure to take into consideration that buying and
maintaining a new home will cost more than you expect. A great
strategy for purchasing a new home is to set aside some cash for
home repairs and furnishings.
As your Realtor, I will work with you carefully to
determine what financial arrangements will work best for you...
When is The
Right Time To Buy a Home?
In general, the best time to shop for a new home is
when other home buyers are not out in force. This would mean, of
course, that you should ideally purchase a home outside of the
traditionally busy spring (April & May) and summer/fall seasons
(August & September).
The economy can also dictate when the best time is
to purchase a home. When the economy is bad, many home sellers may
become desperate to accept offers for their homes which they would
not normally accept in a busier market.
In a good economy, many more people are searching
for new homes and there could be several offers on a property you
are interested in. You may become involved in the unenviable
positon of trying to win a bidding war for a home you really like.
Assuming that you are fortunate enough to be
looking for a home in a Buyer's Market (more homes are available
than serious buyers), you will be able to put many more favorable
conditions on the purchase of your new home such as contingency
provisions for the sale of your home and home inspection provisions
as well.
As your Realtor, I will help you determine when the
optimal time to find your dream home really is!
Researching Your New Neighborhood and Schools
The Internet offers an amazing opportunity to learn
a great deal of information about an area where you may choose to
live. Please visit the Community Information page of my web site
for great information about the areas I serve. Also, be sure to
visit the Educational (School) page of my web site as well.
Another great place to get information on a
prospective community is to mail the chamber of commerce for area
information. Also, most communities now have web sites that list
e-mails and phone numbers of all businesses and many private
organizations like churches, newcomer clubs, and civic
organizations. Not only can you find out how to contact the local
chamber of commerce on these web sites, you can e-mail many people
associated with the village and ask for their impressions and
advice on whether to move to this community.
Perhaps the best way to research a prospective
community is to take a drive and carefully scope out the area
around your potential new home. Look for key indicators such as
shopping malls being in good condition. Are new businesses being
opened? Look to see how well the community is maintained. You have
probably heard of "pride of ownership" when referring to an
individual home or an automobile. Look to live in a city that
demonstrates community pride, as well.
Finally, you may want to do some research on local
crime reports with the local police force or on the Internet. Also,
many local papers carry Police Reports each week that give an
overview of any criminal activity for the previous week. This could
be very valuable information which could alter your decision on
where you finally decide to move.
As your Realtor, I can assist you in learning a
great deal about information about any community that I serve!
Making Your Offer
Making an offer on a home can be a complicated
process. You must consider many factors such as the current housing
market conditions, property condition, and whether you want to
include any contingency provisions (such as selling your existing
home or conducting a home inspection).
Another key factor in determining the amount and
conditions of your offer is whether the seller may be exceptionally
motivated to accept a lower offer. Perhaps the sellers home has
been on the market for quite some time. The most common "motivated
seller" is someone who has already bought his or her next home or
is relocating to a new area. It is important to understand the
sellers current situation before making your final offer.
Identifying motivated sellers can potentially save you many
thousands of dollars.
Finally, be certain to take into account how you
would feel about whatever offer you decide to make. Put yourself in
the sellers shoes and try to imagine how you would react to your
offer and whether you feel it is fair and reasonable.
I will work with you to make a professional offer
which gives you the best chance to purchase your new home for the
least amount of money possible...
How to do a Proper Home Inspection
Home inspections should definitely be handled by
professionals who can give you a detailed analysis of the condition
of your home and uncover any potential problems that might arise
after your home purchase. As a buyer, you should always insist on a
Home Inspection Contingency in your purchase contract.
Most home inspections average between $300 - $500.
The home inspector will provide you with an inexpensive and
unbiased report which will serve to clearly outline any and all
problems which should be addressed with the home you intend on
buying. Most home inspectors will tour the home for 2-3 hours and
will invite the home purchaser to attend the inspection with them.
Home Inspectors are now required to be licensed by
the State of Illinois. When a qualified inspector produces a
report of overall condition of the property and a suggested list of
repairs and improvements, you can now negotiate with the buyer to
remedy any items that need action.
Before closing, you will want to revisit the
property to ensure it is in the condition you have required in your
offer, and to inspect that any required repairs have been
performed. You should do this no sooner than five days before you
intend to close. Make sure this right to do a final inspection is
included in your offer to purchase the home.
As your Realtor, I will work with you to select a
great home inspector and to ensure your dream home is in tip-top
condition and will stay that way for a long time to come!
Moving In Checklist
Before Arriving At New Location
Arrange for utility services in new area:
-
Water company
-
Electric company
-
Gas/oil company
-
Telephone company
-
Cable TV company
Ask new landlord, previous tenant or real estate
agent for recommendations for repair services:
-
Plumber
__________________________________________
-
Electrician
__________________________________________
-
TV repair
__________________________________________
New Location
-
Order local newspapers
-
Meet your neighbors (write down their names)
-
Get recommendations for babysitters, nanny
agencies, etc.
-
Contact Welcome Wagon, Welcome Ambassador, or
other merchant-sponsored organizations for information and free
gifts, coupons
-
Join Newcomers Club
-
Put valuables into a safety deposit box in the
new bank
-
Arrange for new school to receive records
-
Contact new dentists and doctors to arrange for
record delivery
-
Have pets licensed
-
Arrange for new registration of cars (bicycles,
also, if required)
-
Obtain new driver's license if you moved to a new
state, or correct address on present license
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