2011 - 7 reasons to buy a home now!

DAILY NEWSNORFOLK

Friday, May 20, 2011

�-A NORFOLK DAILY NEWS, FRIDAY, MAY 20, 2011

For years, thefederal government

has considered itimportant forAmericans to ownhouses. Home ownership helpsfamilies buildwealth, gives them asafe and stable placeto stay, and createscommunities ofstakeholders whopull together tomeet each other’sneeds.

Home ownership is soimportant, in fact, that the gov-ernment does somethingexceptional to encourage peo-ple to own a house.

It gives a big tax break.Generally, the interest some-

one pays on their home loan isdeducted on their federalincome tax filings. Dependingon a person’s income and howmuch they deduct, the savingscan be substantial. It’s anotherreason why owning a home isone of the greatest wealth-build-ing tools a person can have.

TAX DEDUCTIONSThe United States Tax Code

uses a lot of big words — it’s oneof the most complicated parts ofour legal system, after all — butthe logic behind the mortgageinterest deduction is simple: Ifyou’re working to pay off ahome, the government wants togive you a financial break.

For most people, interest paidon a home mortgage loan isdeducted from their income sothat they pay taxes as if theyearned less money. If someonemakes $50,000 per year, for

example, and pay $5,000 inmortgage interest, they wouldonly pay taxes on $45,000 ofincome.

That example may be overlysimplified, and you should con-sult a tax professional to seehow it would impact your spe-cific situation. But’s safe to saythe mortgage interest tax deduc-tion is used by millions ofAmericans to reduce theamount of money they pay tothe IRS. It’s a powerful incentiveto buy a home and one thatfirst-time homebuyers need toknow about.

TAX FACTS:• 42 million taxpayers in the

United States claimed a deductionfor real estate taxes in 2008,deducting a total of $172 billion.

• The average taxpayer claimingthe real estate tax deduction sub-tracted $4,090 from taxableincome in 2008.

• Therefore the average taxpay-er saved $1,020 in taxes as a resultof the real estate tax deduction..

• The total savings from the realestate tax deduction in the UnitedStates in 2008 was $43 billion.

SOURCE: REALTOR.COM

REASON NO.

1 Slash your tax billBuyers canget big taxbreaks fromUncle Sam

REAL ESTATE

FIRST-TIMEHOMEBUYER

GLOSSARY

TIPS

BIWEEKLY MORTGAGE— A home loan that letsyou make payments everytwo weeks, which canhelp you pay off yourhome faster over time.

SURVEY — A map ordrawing that shows theexact legal dimensions of aproperty.

COLLATERAL —Property used to secure aloan. In the case of amortgage, the home itselfis the collateral.

FIND YOURSELFA GOOD AGENTA good real estate agentmakes a big difference withany home purchase, butespecially for a first-timehomebuyer.

Look for an agent who isnot only well qualified andknowledgeable about thearea you want to live in,but also one who is patientand takes the time to reallyget to know your needs.

After all, an important roleof an agent — especiallyfor inexperienced buyers —is that of a teacher.

COLOURS PHOTOGRAPHY

One advantage of purchasing a home is that the federal government allows most people to deduct the costof home loan financing from their income, which can result in a big tax break.

Get the best price when selling a home he housing market has not yet rebounded to pre- recession prices, when buyers seemed to be stepping over

one another to bid up the price of homes. Today’s sellers may be lucky to get asking price, with the reality being a certain percentage below. However, that doesn’t mean sellers should accept bottom-of-the-barrel offers. There are still ways to get the best price possible on an offered home.

With sellers hoping to get the most possible for a home and buyers interested in spending the least, it’s sometimes a battle of wills when it comes to hashing out a confirmed price in the world of real estate. Sellers who wonder whether they’ll struggle to get a good offer can hedge their bets in the right direction by employing a few strategies.

* What you see is what you get: It’s difficult to change first impressions. If a potential buyer pulls up to a home that doesn’t give them “warm and fuzzy” feelings immediately, it may be hard to eventually sway opinion of the home -- even if it’s pristine on the inside. Individuals do judge a book by its cover, which means that effort should be put into making a home’s exterior as appealing as possible. Landscaping should be neat and lush. There shouldn’t be any obstacles leading to the front of the home. Items that look in disrepair should be mended. Curb appeal does matter.

* Use a real estate agent: Many people forgo this step, thinking they can sell their home just as well without an agent and not have to

pay commission in the process. A real estate agent is schooled in the process of negotiating the price of an offered home. In fact, the more a home’s selling price, the higher the agent’s profit. That’s incentive right there. Furthermore, agents know the average prices of similar homes and can help a seller price and market a property correctly. That may add up to a faster sale (and a better offer).

* Price it competitively: Some sellers think the higher they price their home the more money they’ll get for it. The fact is, the longer an overpriced home sits on the market, the less appealing it will appear to buyers. Individuals looking for a home may repeatedly see the listing and wonder what’s wrong with the home. Even if it’s the best home in

the neighborhood, it may be seen as a red flag that’s best avoided.

* Give people what they want: Buyers often prefer updated kitchens and bathrooms. Most

buyers out there are not looking for “handyman specials.” They want a relatively turn-key property. Home shoppers may be more inclined to go closer to asking price if some of the bigger-ticket items are already completed.

* Don’t be an open book: If a buyer knows that time is of the essence or the home is “priced to sell,” he or she may sense that desperation, almost guaranteeing a low-ball offer. Sellers shouldn’t let on too much about their reasons for selling or make it seem like they’ll be in dire straights if the home doesn’t sell quickly. Selling a home under duress is not likely to cause prospective buyers to pony up.

* Don’t be afraid to counter-offer: A seller who is excited to get an offer on a home in a slow market, but feels the offer is below value, should definitely counter-offer. While the buyer may not accept the counter, he or she may make another offer that is more to the seller’s liking.

T

Curb appeal is one factor that can help a home sell faster and for more money.

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NORFOLK DAILY NEWS, FRIDAY, MAY 20, 2011 �-A


They’re justthree words,but they carry

a lot of swagger.“It’s my house.”

That simple phrase has cometo mean so much more asAmericans have adopted homeownership as a national dream.It’s what we strive for and howwe set our goals, giving us atremendous sense of accom-plishment when we’re handedthe keys to our very own home.

We know it’s not just a pieceof property. When someonebuys a home, it becomes their

own personal sanctuary, anoasis where they can let life’stroubles melt away. Any homecan feel good, but it’s a far bet-ter feeling when the homeactually belongs to you.

THE PRIDE SHOWSYou can tell when you’re

driving through a neighbor-hood with a lot of owner-occu-pied homes. They’re generallykept up better than neighbor-hoods with more rentalsbecause people take pride inthe property they own asopposed to property they’retemporarily leasing.

Homeowners do simplerepairs as they’re needed, not

letting unsightly problems golong without being fixed. Theykeep their property neat andclean because it belongs tothem and they have their ownpersonal money at stake. Theykeep their lawn and landscap-ing in good shape so theirhome will leave a positiveimpression.

That all helps a home’s value,but there’s also a deeper reasonfor it. It’s the intrinsic valuepeople find in owning theirown piece of America.

LIVING THE DREAMHome ownership is as much

about fulfilling dreams as it isabout having a comfortable

place to spend time.When someone buys a

home, they’re making realtheir hopes and aspirations.Whether someone wants tobuy a simple, humble homefor the first time, move into anicer neighborhood or live ina palatial castle, buying ahome represents a dream ful-filled.

That’s another reason buyinga home is so appealing. Fromfirst-time home buyers to peo-ple who want to simplyupgrade to the home they’vealways wanted, one thing willalways be the same: It’s adream come true.

And now is a great time to seeyour dreams become reality.

REASON NO.

2 Pride of ownership

Home feels better when it’s actually yoursCOLOURS PHOTOGRAPHY

REAL ESTATE

FIRST-TIMEHOMEBUYER

GLOSSARY

TIPS

PITI — Principal, interest,taxes and insurance. Thisrefers to the entire housepayment, which includesmore than just the loanpayment.

EARNEST MONEY — Adeposit made by the homebuyer to prove they haveserious interest in buyingthe home.

MAKE SOMECHECKLISTSBuying a home for the firsttime can be intimidating,but it’s much easier if youbreak it down into smallparts.

When shopping for ahome, make a list of allthe features you’re lookingfor. You can mark them offand keep track yourfavorite parts of all the different houses you see.

And after you make anoffer, work with youragent to make a checklistof all the steps you needto take before closing. Notonly will it help you stayorganized, but it alsomakes the whole processfeel more doable.

Fast approval and solid experience have made us the bank of choice for hundreds of homeowners. So, what can we do for you?

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hen a person comes to a certain age and the children move out and on with their own lives, a

home may become too big for its occupants. At this point, residents may feel it’s time to downsize to a smaller home.

Downsizing can be exciting and challenging at the same time. Going through and packing belongings can be a trip down memory lane. But chances are a smaller space will mean that a person will have to part with a number of his belongings collected over time.

To make the process easier, first assess how much space there will be in the new home. Many times floor plans or room dimensions are available. First measure large items, such as furniture, to be sure it will fit in the rooms. Then think about storage possibilities.

Next, make a running list of what items can be discarded and where those items will go. Some belongings

can be donated to charity, while others may be given to family and friends. Many other things could end up in the trash or recycling bins. Knowing where things will go will make them easier to sort.

For those doing a major clean-out of the home, it could be efficient to hire a dumpster to be placed on-site. This way, larger bulk items can simply be tossed inside. Some municipalities restrict what can be placed in the regular trash or how much garbage can be collected, so this alleviates the stress of dealing with excess trash.

When actually beginning to get rid of things, start with the areas that receive the least amount of use. Belongings stored in the attic or basement may be simply taking up space and hold less sentimental value. People can then work their way toward items that are used on a regular basis. Duplicates of things can be donated. It can be cathartic

to clear out clutter and get ready to start anew.

Some people find they have to downsize because of financial reasons. In these cases, thinning out

belongings can also be a way to earn a few extra bucks. Selling or auctioning off seldom used items may produce a little extra cash that can help finance moving expenses or even bills.

A bulk dumpster can be convenient when thinning out belongings due to downsizing.

Downsizing a home W


No matter what your lifestyle orwhat you do for a living, your lifeultimately revolves around your

home. It’s the place you wake up in themorning and the place you go to bed atnight. It’s where you make memories,have fun with your hobbies, eat meals,relax with friends and can simply beyourself.

REASON NO.

3 Make it your ownOwning a home

gives you freedom

REAL ESTATE

FIRST-TIMEHOMEBUYER

GLOSSARY

TIPS

DISCOUNT POINTS —Essentially this is pre-paidinterest, allowing the borrower to obtain a lowerinterest rate by paying anup-front fee. Often shortened to “points.”

PMI — Private mortgageinsurance. It protectslenders if a borrowerdefaults on their loan.

APPRAISAL — Writtenproof of how much yourhome is worth. It’s generally based on whatsimilar homes are sellingfor in nearby areas.

TITLE — The legal document that shows whoowns a property.

PRE-QUALIFYFOR A LOANBefore you start shoppingfor houses, it’s a good ideato pre-qualify for a loan.

This will let you knowwhat price range youshould shop in, and it tellssellers that you’re seriousabout your offer. It canalso help speed up theprocess once you decideto buy a home.

That’s why it’s so importantto make your home a reflec-tion of yourself, both in func-tion and style. There are asmany homes as there are peo-ple, and finding the righthome — then customizing itto meet your own personalneeds — is one of the bestways to improve the way youlive.

FIND YOUR STYLEA home isn’t just a few walls

and a ceiling. It’s a uniquereflection of who you are as ahuman. It can vary from wildand ostentatious to humbleand cozy, and decorating yourhouse to fit your personality isa great way to let yourselfshine. It tells people who youare and how you like to live,from simple to extravagant.

When you own a home, youhave a lot more flexibility withhow it looks. You don’t have toask a landlord for permissionto change the wall color, forexample. You just pick up apaintbrush and paint yourdining room red. Or orange.

Or beige.Or, really, whatever the

heck you want. It’s yourhouse, and it can be designedto match who you are.

ON YOUR TERMSNot only does buying a

house give you more controlover the decorations andstyle, but it also lets you findthe perfect size, location andlayout to meet your lifestyle.

Have a big family? You canbuy a home with lots of bed-rooms and a big back yard.Love big-city living? You canfind a modern loft close tothe city center, near all theaction. Like quiet and soli-tude? You can find a countrycottage at the end of a gravelroad.

However you like to live,you can buy a house that fitsyour needs. And with morehouses on the market at bet-ter prices today, you can besure to find the place thatmakes spending time at homemore enjoyable than everbefore.COLOURS PHOTOGRAPHY


That’s not a bad thing, butit does rely on renters tohelp pay for that profit. Thelandlord doesn’t just have tomake enough money tocover the property, repairs,and any loans to pay for it,but also make enough profitfrom collecting rent to makeit worth their trouble.

Still, renters don’t alwayshave to help their landlordget rich. When someonebuys their own house,they’re helping themselvesprofit instead of helping alandlord.

BUILD UP EQUITYEquity is the difference

between what you owe on aproperty and what it is actu-ally worth. Over time, ashomeowners make theirhouse payments and buildup equity, that can amountto a sizable pile of cash.They owe less and less on ahouse that is worth moreand more.

For some people, buildingequity in a house is animportant part of theirretirement plan. They maychoose to pay off the houseentirely, or they may sell itand use the proceeds to help

fund their golden years.In any case, financial

planners say buying a houseis a smart idea for peoplewho want to build wealthover the long run.

GET CASH OUTSometimes emergencies

arise that force people todip into their savings. Ifsomeone has built up equityin their house, that’s onemore place they can turn forthe money without raidingtheir retirement fund.

In most states, homeequity loans help peoplewho need to tap into thatmoney, so making extraprincipal payments on ahome can actually build afinancial safety net. It’s defi-nitely a savings incentive —it won’t be as easy to spendand waste as money sittingin a checking account — butit will be there if you everneed it down the road.

If you haven’t alreadystarted building equity byowning a home, now is thetime to begin. The earlieryou start, the more equityyou can build up over time.

As they say, time ismoney.

REASON NO.

4 Paying yourselfIt’s a big piggy bank

REAL ESTATE

FIRST-TIMEHOMEBUYER

GLOSSARY

TIPS

LOCK IN — An agree-ment for a lender to offeran interest rate for a cer-tain period of time. Buyerscan pay lenders a fee tolock in a rate that they seeas favorable.

CLEAR TITLE — A titlethat is free of legal questions or liens on the property.

CHECK YOURCREDIT SCOREYour credit score can makea big difference in whatkind of interest rate you’llpay on your home loan —or if you can qualify for aloan at all.

It’s important to knowyour credit score up front.Not only will it help youknow what to expectwhen shopping for amortgage, it can also alertyou to potential problems.

Credit reports aren’talways accurate, so gettinga copy of your report earlyin the buying process willgive you time to iron outany issues that you mightuncover along the way.

There are a lot of reasons someone might want to becomea landlord — they would rather

own real estate than stocks, or theyknow how to do handyman work —but at the top of the list is alwaysmaking a profit.

COLOURS PHOTOGRAPHY


Afraction of apercent maynot sound

like a lot, but whenyou’re financing ahome over 30 years— and sometimeslonger — thatchange in interestrates can have ahuge impact onhow much you payfor the home overtime.

That’s why today’s interestrates make buying a home soattractive.

Years ago, it wasn’t uncom-mon for people to pay double-digit interest on their homeloans, which pushed theirmonthly payments higher andmade it harder for many peo-ple to afford a home. Thosehigh rates also meant buyerswould pay a fortune in interestfees over the life of the loan.

GOVERNMENTPUSH

One reason today’s interestrates are so low is that UncleSam wants it that way. TheUnited States governmentbelieves keeping mortgagerates low will encourage morepeople to buy homes and helpdrive economic growth.

With that in mind, theFederal Reserve began pur-chasing U.S. treasuries to keep

mortgage rates at historic lows.It was an unusual step thatmay sound complicated, butthe end result is simple: It’scheaper for you to borrowmoney to buy a house today.

No one knows how long thegovernment will keep interven-ing to keep rates artificially low,though. That’s another reasonwhy now is the perfect time forpeople to buy a home.

LONG-TERM PERSPECTIVE

Interest rates constantly fluc-tuate, sometimes changing sev-eral times in just one day. Butwhen you look at it over thelong term, today’s interest ratesare near record-low levels thatsimply can’t be ignored. Buyerswho lock in mortgage rates attoday’s levels are getting a

major bargain compared to thehistorically high rates of thepast.

Interest can also make amajor difference in how muchyou’ll pay over the life of yourloan.

Think of it this way: If youborrow $200,000 on a 30-yearloan, you’ll pay nearly $150,000less in interest payments with a6-percent loan than with a 9-percent loan. That 3-percentdifference may not sound likemuch, but it sure changes howmuch you’ll pay to the bankover the whole 30 years.

If you want to see the differ-ence for yourself, search for“loan amortization calculator”on the Internet. You’ll find lotsof Web sites that can help youcrunch the numbers for yoursituation, and you’d be amazedwhat a difference that interestfigure can make.

REASON NO.

5 Low interest rates

U.S. keeping rates low to spur home buying

REAL ESTATE

FIRST-TIMEHOMEBUYER

GLOSSARY

TIPS

AMORTIZATIONSCHEDULE — A tablethat shows how your loanbalance changes over thelife of your mortgage. Ifyou want to know whatyou’ll owe on the homeafter 10 years of makingpayments, the amortizationschedule will show you.

ESCROW — An accountthat can be used to payproperty taxes and insur-ance premiums.

FIND A GREATINSPECTOREvery home someone purchases — even onethat’s brand new — oughtto be inspected by a qualified, experiencedhome inspector.

The best inspectors areextremely thorough. They’llfind every little problemwith the home, which isvital to know up front.Buyers need to be aware ofthese things before makingtheir final decision.

A good inspection will letyou know exactly what toexpect down the road. It’smoney well spent.

COLOURS PHOTOGRAPHY

How to Find the Right Real Estate Agent

uying a home is often a difficult thing to do. The stress of making such a big financial commitment is a

struggle for many home buyers, whether they have purchased a home in the past or are doing so for the first time.

One way to make the process a lot less anxiety-ridden is to work with a real estate agent you can trust. Those who have previously purchased a home might already have a strong relationship with a real estate agent. But for those moving out of their current location or buying for the first time, finding the right real estate agent requires some effort. Those in the market for an agent to help navigate the home buying process should consider the following tips.

* Find a buyer’s agent. Real estate agents are often affiliated with sellers instead of buyer’s. This means their primary goal is to help the seller and not the buyer. When shopping around for a real estate agent, ask companies about their buyer’s agents. Buyers should always have someone with their interests in mind, and not the interests of the sellers.

* Find an agent first, then a property. Many times homes remain listed online or in “home for sale” brochures even if they are under contract or sold. These homes are often luxurious and appealing to a wide array of prospective buyers, and some agencies use them to attract customers. While this isn’t a typical bait and switch, it is a way real estate agencies get customers in the

door. It is important to find a real estate agent before looking through home listings. This allows the buyer to choose their agent based on merit and not due to the potentially glitzy houses he or she may have listed previously.

* Find someone with a track record. Real estate can be an exciting and financially rewarding industry in which to work. As a result, lots of people want to be real estate agents, even though few succeed and last a long time. When interviewing real estate agents, inquire about their history in the business. A more experienced agent will make things far less stressful

and easier, and a long career indicates they are

good at what they do. A real estate agent with a long history

in the business will likely be a full-time agent as well. Prospective buyers

should look for a full- time agent, which is not as common as some buyers might think. Many agents work part-time, and

buyers could receive less attention as a result.

* Don’t place too much emphasis

on agency size. Real estate agencies come in

all shapes and sizes. When it comes to ability, the size of the agency should not factor in. A smaller independent agency can be just as qualified and reliable as one of the major franchise agencies. Buyers who find someone they trust should go with that person, regardless of how big or small their

agency is. * Get a referral. Friends and

family members who have been through the buying process before might be great resources. Buyers looking in “Town X” who have friends or family already living there should consult those friends

or family and ask for any agent referrals. Those relocating because of work should ask their company to refer an agent. Chances are companies have relocated employees in the past and might have a strong relationship with an agency in town

B Finding a trustworthy and experienced real estate agent can help make the process of buying a home much less stressful.

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Renting canwork for somepeople, like

those who movearound frequentlyfrom place to place.

But when you’re ready tosettle down, whether to raisea family or just have a niceplace you can call home,nothing beats owning ahouse.

There’s a sense of perma-nence you get when you owna home, one you just can’tfind in an apartment orduplex, where moving trucksmark the coming and going ofneighbors on a regular basis.

RAISING A FAMILYIt’s important for children

to have a place of their own —complete with room toexplore as they learn andgrow — and the best way toprovide that kind of long-term stability is to purchase ahome that meets your family’swants and needs.

A home isn’t just a place tokeep you warm and dry. It’sthe place your children willmake most of their memoriesas they grow up, enjoying theholidays and spending timetogether as a family. It’s aplace they’ll always remem-ber.

And because today’s realestate market offers morehomes at lower prices, now isthe perfect time for youngfamilies to buy their piece ofthe American dream.

KNOWING YOURNEIGHBORS

Hosting a neighborhood bar-becue is a right of passage formany American families. Thesound of laughter, the smokysmell of meat on the grill, andthe warm smile of a longtimefriend can make your backyardfeel like heaven.

But how can you develop

those neighborhood bondswhen your neighbors arealways moving?

If you own a house in a safe,stable neighborhood, youdevelop close bonds with thepeople who live around you,the folks who share your inter-ests and are always happy tohelp you out when needed.

Putting down roots is a greatway to forge friendships that

last a lifetime. It would beheartbreaking to lose thoseclose connections if you’reforced to move at the whim ofa landlord, or your rent israised so much that your homeis no longer affordable over thelong term.

It’s another reason that find-ing the right house in the per-fect neighborhood is a smartidea right now.

REASON NO.

6 Putting down rootsOwning a home provides a sense of stability

REAL ESTATE

FIRST-TIMEHOMEBUYER

GLOSSARY

TIPS

REALTOR — A memberof the National Associationof REALTORS. Not all realestate agents are REAL-TORS.

PROMISSORY NOTE —A written promise to repaya loan over a certain period of time. Oftenshortened to “note.”

JUMBO LOAN — Anyloan over $227,150, whichis the top limit for FannieMae and Freddie Macloans. Sometimes called anonconforming loan.

WHAT YOUCAN AFFORD?This is a decision thatneeds to be made upfront, and there’s no easyanswer.

Mortgage companies cantell you what kind of loanyou qualify for, but that’sonly part of the decision.

You also need to look atyour personal budget andwhat kind of lifestyle youwant to live. Be sure youinclude expenses likehomeowner’s insuranceand property taxes in theplanning process.

COLOURS PHOTOGRAPHY

10-A NORFOLK DAILY NEWS, FRIDAY, MAY 20, 2011

NORFOLK DAILY NEWS, FRIDAY, MAY 20, 2011 11-A

It’s no secret thatthe real estatemarket has

slowed down inrecent years.Houses aren’tselling as quicklyas they did in thewhite-hot marketseveral years ago,which means people who areselling their housestoday have to workharder than ever tomake a deal.

And that’s a great thing forbuyers.

Overheated real estate mar-kets, like we saw a few yearsago, result in too many peo-ple shopping for too fewhouses. That drives up pricesas multiple buyers make bidson homes and sellers holdout for the very top dollar.

In today’s market, though,there are a lot more bargainsto be found. Sellers have toprice their homes moreaggressively, making now theperfect time for smart buyersto get a great deal.

BUY LOW,SELL HIGH

When someone invests inthe stock market, they’readvised to “buy low and sellhigh.” This means to buy

stocks when their prices aredepressed and sell whentheir prices have risen, andthe same advice could applyto purchasing a house.

To be clear, housing hasn’tbeen as historically risky asthe stock market over thelong run, and there are a lotof reasons to buy a houseother than to make moneywhen you sell. A home istruly a home, not just a lineon your investment sheet.

But if you want to makemoney on your home overtime, it makes sense to buy ata time when the prices havedecreased rather than whenthey’re at their peak.

MORE CHOICESTO PICK FROM

If you tried to buy a home

several years ago but struggledto find the perfect place — orcouldn’t afford what you reallywanted — you might be pleas-antly surprised by today’s mar-ket.

There are more homes forsale at better prices today,making it the perfect time forpicky buyers. If your dreamhome was just out of your pricerange a few years ago, forexample, you might find it’sbecome affordable for youtoday. Neighborhoods thatwere out of reach could actual-ly be attainable now.

That’s the great thing aboutshopping in a buyer’s market.Sellers are more willing tonegotiate, and buyers havemore options to pick from.

And in real estate, like somany other things in life, tim-ing is everything.

REASON NO.

7 It’s a buyer’s market

More choices, better deals to be found

REAL ESTATE

FIRST-TIMEHOMEBUYER

GLOSSARY

TIPS

HUD-1 STATEMENT —A document that providesan itemized list of all thefunds that are paid at closing. It’s a standardform that spells out exactlywhat you’re paying for atthe closing table.

PREPAYMENT — Moneypaid to reduce the balanceon a loan before it’s due.This can save you a lot ofmoney over the long haul,but you need to knowwhether your loan has a“prepayment penalty.”

EDUCATEYOURSELFBefore you start thehome-buying process —and as you’re goingthough it — it’s importantto do your homework.

You need to know a lot ofdifferent things, like whattypes of loans are available,what to look for in potential neighborhoods,and the definition of lots ofreal estate terms.

The Internet has both solidinformation and some misleading Web sites, but agood agent can help youshorten the learning curve.

COLOURS PHOTOGRAPHY

Learn the Basics of Home Warranties B properly.”

Home warranties can be a smart investment that take some of the financial pressure off of new homeowners. They can also be negotiated into the sale terms of the home so that the seller is responsible for providing the warranty to the new buyer.

Home warranties do not negate the need for homeowner’s insurance, but they can add protection against large monetary pay-outs to repair many items around the house. Policies may differ as to specific coverage, but most home warranties will cover major systems of the home, such as heating/ cooling, plumbing, electrical, as well as certain appliances.

To decide if a warranty is the right investment, home buyers should consider the following:

* Home warranties are only as good as the company backing them. Careful investigation into the trustworthiness of the warranty company and its track record should be completed.

* Read the fine print of the warranty. Learn what exclusions exist,

uying a home is arguably one of the largest purchases a person will make. It can also be one of the most stressful. Individuals

take quite a financial leap when buying a home. Even after careful consideration of funds and budgeting, it’s easy to become overextended. A home warranty can take some of the bite out of unexpected expenses.

Although home buyers are urged to hire an inspector and check a property

and structure from top to bottom before signing on the dotted line, a home inspector cannot foresee everything that may crop up after a person moves into a home. “When my home inspector reviewed the property he found only minor things that needed attention,” says Jeannine in New Jersey. “After I moved in, we shortly learned that the crawl space had flooding issues that would require a lot of money to fix

which may not make the warranty practical.

* Keep in mind that the warranty company reserves the right to determine if a repair or replacement is adequate in a claim situation.

* In general, warranty companies work with their own set of contractors. This means a homeowner may not be able to hire his or her own preferred contractors to do work.

* There may be a deductible or a fee charged prior to having a technician assess a repair situation.

* The warranty company may require inspection of the house to be sure items are in good working order before offering a plan.

* If a warranty is offered through a home seller, there may be no negotiation on the coverage or company used. Home buyers should keep in mind that there are many unforseen expenses that can arise when purchasing a new home. Having some additional protection, such as a home warranty, could mean saving money on repairs.

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Member FDIC [email protected] | 402.371.1500 | 1500 MARKET LANE • NORFOLK

STEVE OSBORN , Associate Broker, ABR

402-750-0717 DOVER REALTORS ® www.SteveOsbornRealtor.com

NONE OF THAT MATTERS! The most important reason is the assurance of working with a Realtor who will help YOU with buying or selling your home in an honest, trustworthy and professional manner. Let’s Get Started. Call me today.

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#1 Realtor at Coldwell Banker Dover Realtors for 2009 & 2010

2011 International President’s Elite member of Coldwell Banker, the top 1% of all Coldwell Banker a gent s worldwide.

Consistently in the top 5 Coldwell Banker sales associates in the state of Nebraska.

Premier real estate website for the Norfolk area. The first local website to include an interactive map of all MLS listings. www.SteveOsbornRealtor.com

Over 400 buyers and sellers helped in the past few years.

Multi-million dollar producer for 5 years, associate broker and accredited buyer’s representative. 2. 2. 3. 3.

12-A NORFOLK DAILY NEWS, FRIDAY, MAY 20, 2011

2011 - 7 reasons to buy a home now!

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