Anybody have any warning for me on buying house?

What should I be cautious about? what to look for so I am not getting ripped of by the lenders or others? what fees should I pay or not pay? Any ideas that will help me to avoid a bad situation with the closing?

Any idea would be greatly appreciated.
Thank you so much

Get some different quotes on mortgages and insurance etc. The best piece of advice I can offer is Expect to be stressed. Even people who think they won't get stressed bythe process end up wanting to scream by the end of it. Oh and get a good solicitor who will take his time to read the lease agreements. My one stopped me being potentially ripped off, as the lease on the property didn't allow me access down the garden path!! He wouldn't let me buy it until the lease was changed!

Get a good Realtor, and this person will be able to help you through the whole process. Look for a Realtor with the ABR Designation (Accredited Buyer's Representative), they'll do the best job for you, and look out for your best interests.

Best of luck!

What country are you in Kim?

Visit the house at different times of the day and the week. Somewhere that looks lovely on a monday morning or wednesday lunchtime could be a gang infested hell at evenings and weekends. Sunday mornings is when the suburbs get their power tools out, which will permanently ruin your day of rest.

One you have the survey (don't skip this) there may be things which need attention, which you had not noticed and the vendor had not mentioned - such as roof, wiring, insulation - which need attention. Go back to your vendor and negotiate a lower price because you have to have this work done. In this way a surveyors report can pay for itself.

Make sure that you get an inspection on any home before you purchase it. Never waive the inspection no matter how good of a deal or how competitive the bidding for the home is. Dont let the exterior of a home fool you because there may be many hidden flaws. Make sure you get estimates on your insurance rates from 3 different lenders to see who will offer you the best rate. Any other advice I give would be case specific. Hope I helped.

Top 10 Questions to Ask a Lender

1. Are you a bank, banker, or broker? A bank is where you will get the best deal (lowest fees). Many banks DO NOT charge a loan origination fee. Brokers many times will charge a loan origination fee. Loan origination fees equal 1% of the amount borrowed. If you have good credit (FICO above 620), and nothing unusual on your credit report, you may consider going straight
to the source and skip the middleman. If you have bad credit or are
self-employed showing little income, you may need to work with a broker who
can find a loan to fit your needs.

2. Do you charge a loan origination fee? It's important to ask. If you don't want to pay the loan origination fee, this will eliminate many bankers and many of the brokers.

3. Do you collect a Yield Spread Premium? Yield spread premiums are a kickback the lender receives for charging you a higher interest rate on your loan. Sly lenders knowing consumers don't want to pay loan origination fees are saying NO to loan origination, and at the closing are receiving a yield spread premium instead.

4. Do you do automated underwriting? The best lenders try automated underwriting BEFORE issuing a "Conditional Loan Approval" this avoids last minute surprises and greatly speeds up the lending process.

5. If you do not do automated underwriting, do you have an in house underwriter? In house underwriting gives the loan officer a chance to sit down with the underwriter and understand what is needed to get your loan approved. Lenders who do not have in house underwriters will submit your package several days before you close. If there are additional documents required by the underwriter, your loan may not close on time as you scramble to acquire these last minute requests for documents.

6. How many days before close do you deliver the loan packet to the Title Company? Good lenders will have the package to title at least 2 days before close. Once signed the package needs to go back to the lender for final review by the underwriter. Lenders who deliver the packet on the same day of close means there will not be enough time to get it back for underwriting for final review and to close on time.

7. Do you table fund? Table funding means the investor funds your loan proceeds via a wire transfer to the Title Company. Investors that are thousands of miles away take longer to fund and may create last minute surprises because of the distance the packet needs to travel.

8. How often do you check your messages? There is nothing more frustrating than a lender who won't return phone calls.

9. Do you update Weekly? Would you update me weekly on my loan status and walk me through the entire process from start to finish?

10. If the interest rate lock is free, how long in duration is it? A 30 day lock should be all you need. I recommend you lock at a rate that you can live with. Trying to catch the absolute bottom in rates is impossible and adds stress to the home buying process.

Terry S.

http://www.Welcome2Arizona.com

Kim, even I am not looking right now as the market in CA will cause prices to drop. Unless you are in Texas or area not impacted by the meltdown (and I can't think of any) find a great ABR Realtor, hopefully with Keller Williams or Remax that knows what they are doing and will work in your best interest.

Get a home inspection with an ASHI registered home inspector.

As they say knowledge is power. The best way to answer this is to ask you a few more questions. Where are you buying this property? Do you know the current market conditions in your area? You should be cautious about everything because buying real estate is a complicated situation when it is easy. Many state still have "Cavet Emptor"
as part of the law. Let the buyer beware. Even if you have a real estate agent you need to understand each step and what it requires. I have been in the real estate game for over 30 years and the best loan, unless it is impossible, is a fixed rate loan, PERIOD.

Whatever you do, don't get duped by mortgage companies offering too-good-to-be-true payments. These are usually very bad mortgages to have. The fees are high and the terms are horrible. If you can afford it, stick to a 30-year fixed and go directly through the mortgage company, not a broker. Brokers always have a few little fees tacked on. Always get a home inspection even though it costs several hundred dollars. In today's market, you might even be able to get the seller to pay for it. You may also be able to get the seller to cover a home warranty for you. I am so glad I had one, the A/C in my house went out within a month of buying it in Arizona in JULY! Also, do get a great realtor, they really make a big difference.

buy it soon the markets going 2 crash

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