Buying a home in Bucks County or Montgomery County is probably the biggest investment you will make, with long-term financial ramifications. It calls for many informed decisions and for good advice from a real estate professional. When buying a home or property for sale, you can learn from the knowledge and skill of a real estate agent in Pennsylvania.
Home sellers won’t call you with an offer to buy a maintenance-free home with a wonderful mortgage. You have to find the gems yourself! Only by reading available materials, talking to friends and experts, and spending time looking at different homes, schools, and neighborhoods will you end up achieving your American dream. Avoid the nightmares by learning how best to buy and maintain a home.
The days of 10%-30% annual appreciation have passed. Homebuyers in the 1970s benefited tremendously from what seemed like ever-appreciating home prices. Nowadays, you’re looking at slow growth while guarding against the possibilities of falling prices, skyrocketing ARM rates, and corporate layoffs that can dramatically affect your home’s value. The classic rule of buying the worst house in the best neighborhood still applies. If you buy with an eye toward improvement, you can customize the home to fit your needs. The saying “make money buying a home, not selling one” should keep you focused on the long-term importance of the purchasing price.
Adjustable rate mortgages (ARMs) have an initial fixed rate, which is followed by a period of adjustment intervals during which the rate adjusts based on the performance of several key indexes. Typically the initial fixed rate on an ARM is slightly lower than the comparable rate of a fixed rate mortgage.
Fixed rate mortgages allow buyers to take out a long-term loan without having to worry about changing interest rates or monthly payments. Most fixed rate loans are offered in either 15- or 30-year terms.
Most buyers will be well served by a fixed rate loan, but each situation is unique. While ARM loans have become less popular in recent years, they can still be a viable option for some buyers – especially those who plan on selling again in the short term.
Whichever loan you choose, make sure that you scrutinize all the closing costs. If you are required to have a mortgage escrow account and private mortgage insurance, make sure you understand the terms and cancellation procedures (your real estate agent has publications to assist you). Also, make sure there are no prepayment penalties so that you can utilize an accelerated mortgage plan. A good mortgage reduction plan can save you tens of thousands of dollars in interest costs, and shorten your loan term, with only small extra principal payments. If you experience negative changes in your job, health, or marital status, you can revert to the standard payments in your mortgage contract.
One of the biggest decisions to make before putting a contract on a home is how to finance the purchase. There are 10,000 lenders competing for your mortgage business. The days of simply walking into the community bank and negotiating with the loan department manager are over. Today, you can apply for a loan over the Internet or even use a mortgage broker who works with hundreds of lenders to shop for your loan. When choosing a lender, you want to avoid apples-to-oranges contrasts by comparing fixed rates to fixed rates, not fixed to ARMs. Create a chart that lists different types of loans, fees, and at least five mortgage providers (including a mortgage broker).
Although it is hard to believe, more people pay for inspections before buying used cars than when making the biggest investment of their lives – their homes. Paying for a qualified home inspection before you buy a home isn’t just spending “a little extra” for peace of mind; it’s absolutely essential for anyone who doesn’t want to spend thousands of dollars for repairs.
To protect both you as a buyer, as well as the seller, it is a good idea to purchase a home protection plan. What exactly is this? A home warranty, or home protection plan, is a service contract, normally for one year, that protects homeowners against the cost of unexpected repairs or the replacement of their major systems and appliances that break down due to normal wear and tear. A negotiable contract between the buyers and sellers that does not overlap with or replace a homeowner’s insurance policy, this type of warranty can save the new homeowner lots of headaches, as well as put a seller’s fears to rest. The warranty covers mechanical breakdowns, while insurance typically repairs the related damage. For example: if a hot water heater burst and destroyed a wall in your home, the warranty would repair the water heater and your insurance would pay to fix the wall!
550 North Main Street
Doylestown, PA 18901
Office : (215) 348-1700
REALTOR® ABR SRES
RS332450
Primary: (267) 218-2495