Want to Purchase A Home? Tips for Couples or Singles

[Infamous12]

I FINALLY went to that First-Time Home/Condo Buyers course last night, and got some information. Since I had no prior knowledge on any of this, someone with more mortgage/finance experience could probably critique it, but for me it was a start.

Forgive me in advance for the lengthy post, I'm merely re-typing a few key points from the handout. The class was taught by a mortgage consultant and a real estate consultant and pretty much gave us the top 9 mistakes when trying to purchase, the breakdown of credit scores, biggest financing mistakes, the difference between pre-approval and pre-qualification and info needed for pre-approval.

*Whew* Here goes...

9 Costly Mistakes Many Home Buyers Make:
#1: Not using an Experienced Buyer's Agent
#2: Relying on Inaccurate Sources for Information
#3: Missing the Red Flags when House Hunting
#4: Making An Offer without a C.M.A.
#5: Not Protecting Yourself Legally
#6: Not fully Understanding the Purchase Contract
#7: Not Performing a House, Termite, and Radon Inspection
#8: Not getting a one-year home warranty
#9: Closing on the last business day of the month

(If you want the explanations to any of these, PM me. Or maybe I'll post them again if you guys want that too)

Biggest Financing Mistakes:
1. Not having a plan
2. Falling for the bait and switch advertising or choosing a lender solely on interest rate
3. Using an out-of-town internet company

They also stressed the importance of getting everything in writing, including closing costs, downpayments and personal vs. real property. And giving the seller no more than 24 hours to accept your offer.

Another stressed point was credit. 35% of your credit score is how you pay your bills, 30% is your ratio of balance to limit, 15% is the length of time you've had credit, 10% is the type of credit (a mix is desired) and last 10 is based on inquiries. If your credit score is 720 +, you're golden...

Something I never knew was that auto and mortgage inquiries are different from other types. You can have 20 inquiries from auto or mortgage within a 14 day period and it'll only count as one inquiry since it's evident you're merely being a 'smart consumer'.

So, that's pretty much the cliff notes of the class. They gave a website to learn more information, www. freehomebuyercourse.com.

My fingers will mutiny if I continue on... Hope some of this helps someone!

[SummerChild]

Great information Infamous12!
Can you elaborate on 3, 4 (what is a CMA?) and then 2 in the financial section or is it on the website that you referred to? If it's easier, I can give you a quick call. Let me know.

Originally Posted by Infamous12

I FINALLY went to that First-Time Home/Condo Buyers course last night, and got some information. Since I had no prior knowledge on any of this, someone with more mortgage/finance experience could probably critique it, but for me it was a start.

Forgive me in advance for the lengthy post, I'm merely re-typing a few key points from the handout. The class was taught by a mortgage consultant and a real estate consultant and pretty much gave us the top 9 mistakes when trying to purchase, the breakdown of credit scores, biggest financing mistakes, the difference between pre-approval and pre-qualification and info needed for pre-approval.

*Whew* Here goes...

9 Costly Mistakes Many Home Buyers Make:
#1: Not using an Experienced Buyer's Agent
#2: Relying on Inaccurate Sources for Information
#3: Missing the Red Flags when House Hunting
#4: Making An Offer without a C.M.A.
#5: Not Protecting Yourself Legally
#6: Not fully Understanding the Purchase Contract
#7: Not Performing a House, Termite, and Radon Inspection
#8: Not getting a one-year home warranty
#9: Closing on the last business day of the month

(If you want the explanations to any of these, PM me. Or maybe I'll post them again if you guys want that too)

Biggest Financing Mistakes:
1. Not having a plan
2. Falling for the bait and switch advertising or choosing a lender solely on interest rate
3. Using an out-of-town internet company

They also stressed the importance of getting everything in writing, including closing costs, downpayments and personal vs. real property. And giving the seller no more than 24 hours to accept your offer.

Another stressed point was credit. 35% of your credit score is how you pay your bills, 30% is your ratio of balance to limit, 15% is the length of time you've had credit, 10% is the type of credit (a mix is desired) and last 10 is based on inquiries. If your credit score is 720 +, you're golden...

Something I never knew was that auto and mortgage inquiries are different from other types. You can have 20 inquiries from auto or mortgage within a 14 day period and it'll only count as one inquiry since it's evident you're merely being a 'smart consumer'.

So, that's pretty much the cliff notes of the class. They gave a website to learn more information, www. freehomebuyercourse.com.

My fingers will mutiny if I continue on... Hope some of this helps someone!

[Conskeeted7]

CMA - Comparative Market Analysis

This lets you know what other comparable properties sold for recently to give you an idea of your potential property's value.

[SummerChild]

Thanks Soror. I'm been calling them "comps." LOL.
SC

Originally Posted by Conskeeted7

CMA - Comparative Market Analysis

This lets you know what other comparable properties sold for recently to give you an idea of your potential property's value.

[Infamous12]

Just in case others had the same questions...

#3 - Red Flags, was pretty much about looking at a house with rose colored glasses, or allowing your emotional connection to outweigh your logics. Making sure you and property are insurable, not waiting until the last minute for a CLUE Report. (Comprehensive Loss Underwriter Exchange)

#4 - Comparative Market Analysis...

#2 in the Financial Mistakes...dealt with falling for gimmicks. Getting with a company just because of their advertised interest rates, which may or may not pertain to you. You should shop around and according to my 'teachers' you should be able to ask the following four questions.
~ What are mortgage interest rates based on?
~ What is the next Economic Report or event that could cause interest rate movement?
~ When the Feds 'change rates' what does this mean, and what impact does this have on mortgage interest rates?
~ What is happening int he market today and what do you see in the near future?