So, you're behind on your mortgage payments. Let's get the obvious out of the way: that sucks. Really, it's stressful. Every time your phone rings, a pit develops in your stomach because you don't
Home Buying Shouldnt Be Scary
Home Buying is a BIG DEAL. Most FIRST TIME home buyers watch HGTV and think that you meet the agent at a nice little restaurant and get to know each other. Then after a few minutes, the "KIDS", we'll call the first time home buyers kids. The KIDS are shown a list of three houses. These houses have been compiled from a list of wants and needs the kids have told the agent they want in a home. The three houses are scheduled for showing and off they go. I have to admit, it is fun and a little exciting to go look at different houses. That's probably one of the reasons i'm in Real Estate. The main reason is that my wife is my broker and I really like working next to my wife. But I digress. So, off the kids go with their new bestie. Their agent. The agent has been through many many hours and months of training and is expected to be well qualified in the business. Truth be told, all of the agents I have ever met are extremely talented and knowledgable. In the local area as well as the laws that govern the Real Estate biz. So they drive at the first house. Here is where the ooo's and awww's come in. Although sometimes there are some oooh's and awe's. Remember that not every house is THE ONE. After they see the first then it's on to the second and so on. "I like this about that house" or " I Love this but I wish it had that". You have to have some vision. An active imagination. Then after all three houses have been viewed, the agent says, "Which one will it be?". The kids look at each other and after a long dramatic pause, they tell their agent "Which One". This is the easiest part of the process. Now the "SCARY" part comes in. Making an offer and, if that is accepted and agreed upon by the seller and the kids, then, Financing. It has been my experience, although limited, financing is what most people fret over. The lender you choose will want to know everything about you and your past financial history. As well as your job, credit, spending habits... Fear not. To prepare you kids for this, here are a few tips. 1: BE HONEST. You don't want to spend more than you can afford. (ALSO SCARY). 2: DO NOT APPLY FOR SQUAT!! I mean don't apply for new credit for anything. I know you want new furniture from that awesome store that has no down payment and no payment for a year. Trust me on this. DON'T DO IT!! You can wait until after you close on your home and establish a budget, then, if you can afford it. Buy that furniture. 3: DO NOT MAKE ANY UNUSUAL DEPOSITS TO YOUR BANK ACCOUNT. The lenders will want to know where the money came from. They have every right to know. I don't care if your Mom and Dad gave you the money. It all has to be traceable. I know it sounds crazy, but they will look for these things. The same thing goes for having a garage sale or selling a car. I repeat. NO UNUSUAL ACTIVITY WITH YOUR BANK ACCOUNT. Once you make it through the lender obstacles, then there is 4: The HOME INSPECTION. Fear not. All home inspections are supposed to find things wrong with the house. The vast majority of the wrong things found are quick and simple to fix. For example, with plate covers, a loose floor board, squeaky hinges etc... No worries, these are easy. It's the big things like the AC or water heater that are the worry spots. Roofs too. Most sellers will fix the big items or adjust the price to compensate. 5: Closing. This is where you will sit in a conference room with an attorney and the sellers and and your agent and their agent, if they have one. You will swear that all of your statements are true and give a copy of your license. Then you will sign a BUNCH of papers. If you went through a lender, then your funds will have been transferred to the attorney before you even get to their office. Also, just in case you KIDS didn't know. You have the right to have your own attorney present at closing. But truth be told, you really don't need one because the attorney performing the closing works for your lender. Not you. I know i've been a little all over the place with this blog thing. It's my first one ever. I just thought I would share a little of what goes on in the home buying experience from a NEW AGENT perspective to some of you KIDS. You see, I'm still a KID too. And, I love HGTV. But it's not that easy.
Phillip Benefield (BOBO) has been playing music professionally since the age of 5. He started in Las Vegas at the Tropicana Club playing drums with Dick Cantino and his forty piece orchestra sitting i....