Survey Finds That "Lender Pre-approval" is the Most Important
Attribute Home Buyers Bring to the Table, Other Than
Purchase Price Agreement

 In a recent HouseHunt national survey of consumers, seven out of 10  said that “lender pre-approval” is the single most important attribute that a home buyer brings to the table, other than agreement on the purchase price. 

 The survey found that the second most important attribute (10%) was “a quick escrow period.” 

 Then came “high down payment” and “representation by a real estate agent” at eight percent each. Finishing last at four percent was the potential buyer’s “credit score.”

 “The best way to get your deals through is to make sure you have each of your buyers pre-approved and prepared to close escrows quickly,” said Michael Bearden, president and CEO of HouseHunt, Inc.  “Sellers don’t want to waste time with potential buyers who may or may not be in a financial position to complete a transaction."

Tips to Consider While Shopping for a Home

If you have to resell soon, avoid buying an unusual home.

Expect lower maintenance costs with a brand-new home.

Never tell a seller's broker how much you'll raise your offer for a particular house.

When interest rates are low opt for a fixed mortgage.

Pay attention to floor plans. Changing layouts of rooms later can be costly.

You can deduct on that year's tax return points paid by either party on the purchase of your own residence.  Contact your CPA for more information.

If the present owner has a title insurance policy less than 3 years old, you could have substantial savings by buying a reissue of that policy rather than a completely new one.

Pay attention to the original listing date of the homes you are considering; Sellers tend to be more flexible in the price the longer the home is on the market.

A house that's sited to take advantage of the sun, the wind and the topography costs less to heat and cool and can save thousands of dollars over the years in utility bills.

If you think you may need more space in the near future, be sure the house and lot will allow for expansion.

Renovating a kitchen is likely to be expensive. So be sure of what you need and want before you buy.

Be careful of buying homes with foundation problems. Although most foundation problems can be corrected, repair work is usually expensive. 

A roof that complements the style of a home and is carefully maintained adds to the home's visual appeal and its resale value.

A light-colored roof reflects heat and is preferable in hot climates.

The three most popular wall choices are brick, wood siding and stucco. About half of all home shoppers prefer brick for exterior walls; about one-third prefer wood siding; and about one-fifth prefer stucco.

Wood floors suggest warmth, quality and good taste and are an asset when it comes time to sell a house.

Most home shoppers prefer a combination of ceramic tile and vinyl wallpaper as a covering for bathroom walls, creating a positive effect on the house's resale value. Ceramic tile is usually installed wherever water comes in contact with the wall.

Plant deciduous trees, shrubs and vines on south and west sides of the home to provide shade in the summer. Remember trees enhance the beauty and value of a lot and house. 

Statistics for First-time Homebuyers

From Realtor Magazine Online:  
"A national survey by Wells Fargo Home Mortgage shows many first-time homebuyers are unwilling to compromise on certain key elements in the homes they buy, which could prolong the time they spend renting.  

Key findings from the survey also include:

* 97% of first-time homebuyers would never go back to renting
* 77% of first-time buyers believe buying their home is the best investment they ever made
* Nearly 75% of first-time buyers believe the value of their home will go up in 2006
* 78% of renters believe that people cannot obtain mortgages without perfect credit
* 56% of renters believe a downpayment of 15 percent or more is required when buying a home and 55% believe the size of the downpayment is a personal barrier for them. But 74% of first-time buyers say they put less than 15% down."


Recommended Next Steps for First-time Homebuyers

The best advice for first-time homebuyers is to consult a Realtor.  Even if you feel your credit is not perfect, even if you don't have a lot of savings in the bank, even if you are several months away from starting to look for homes, a Realtor can help you.  We can get you in contact with a helpful, professional loan officer who can set a long-term plan for you to achieve your financial goals.  You could be closer than you think!  And it's a great idea to find your Realtor a few months in advance, so you have time to discover what sort of homes and price ranges you are most comfortable with.

Below are more tips for first-time homebuyers.  With any questions, please feel free to email us at Kerry@GoldTeamLasVegas.com  or call (702) 321-2370.    

Research

Make the first investment - of your time - by familiarizing yourself with the basic purchase process.  You will feel more confident and less overwhelmed.  Try reading "Homebuying for Dummies" by Eric Tyson and Ray Brown, a great introduction to buying a home.  Decide what area you will be concentrating on and what your timeframe will likely be.

Build Your Team

Once you narrow down where and when you want to buy, it is time to shop for a Realtor.  It is important to find someone who will be available to answer all of your questions, explain the process step by step, and someone listens to your needs.  You can also contact a loan officer of your choice, or your Realtor can make suggestions about local loan officers who can assist you.  The loan officer will first get you pre-qualified so you and your Realtor have a realistic price range in which to search.  The loan officer will then work with you on becoming pre-approved.  This is important because sellers often want to see a pre-approval letter accompany an offer for their home.  When you have a solid team of professionals on your side, you can be sure that all of your questions will be answered - remember, there are no dumb questions!

Finding Your Home

An internet-savvy Realtor can save you time and effort by emailing property details to you so you can narrow down the homes you are most interested in.  Then, at your convenience, your Realtor can take you to see the homes.  Once you make your selection, your Realtor will work with you to put together an offer which, if signed by the Seller, will be the purchase contract.  The normal escrow period is approximately 30 days in which for example, escrow is opened, inspections are conducted, your loan documents are created, and you sign all the paperwork having to do with the purchase.  Your Realtor will be negotiating any repairs you request and and making sure that you will be completely satisfied with your home.  Finally the day arrives when the deal is recorded and your Realtor brings you the keys!  At last, you are now an experienced homebuyer!

What to Know Before Buying a Fixer-Upper
A home in need of repair can be a good deal, especially if buyers are able to do some of the repairs themselves.

Here are three major things to think about when considering a home in need of major improvements: