4. CONTRACT
When in doubt, tie up the property by getting the property 'under contract' and just ensure that your escape clauses are in place. Earnest money...it is important to know 'how much' earnest you need to put down. Truth is, all that you need to put down is $1 to $100, whatever amount is required by your title/escrow company to open an escrow account. Real Estate Agents will tell you they like 1% or some other amount because it show that you are a 'serious' buyer. Point is...earnest money is negotiable. Everything is negotiable.
Quick Contract tips..if you want something, be specific. If you want an 'escape' be broad. Two examples, I want the Viking Refrigerator so in my contract I am going to add the serial number and photograph..or; This deal is subject to my partners approval. You may not want that Viking to be replaced by a GE (no offense GE) and for the other example I never said that my partner was my dog and the property didn't pass the sniff test.
Real Estate Agent...getting into serious contracts, use a Real Estate Attorney.
Tools - Your real estate agent will have a standard purchase agreement. In case of you are looking for other legal forms click here.
5. ANALYSIS of the Property
There are 2 areas of property analysis to consider: Property condition and property value.
Property Condition- Do you know if you are buying a dog? Do you want to buy a dog? (Believe it or not some people do as they love the concept of fixing a property up.) The point is do you know what needs to be 'fixed' or 'updated' on the home prior to purchasing. A good home inspector will identify issues or problem areas throughout the entire home. If your home inspector does identify issues, then you will want to bring in specialists to quote the work and evaluate what it will take to handle the work.
Property Value - When buying a home there is one primary number that you want to be aware of...The Appraised Value of the property. You will get this from an appraiser, but one tip...ask for (and review) a copy of the appraisal before you close.
Real Estate Agent, Appraiser, Home Inspector, any other specialists required.
Tools - Sample Appraisal
6. LOAN Analysis
Below is a quick checklist of items that you will want to know concerning your loan. You will want to compare this information to your current financial situation and your exit strategy to ensure that this loan fits your needs. It is always recommended that you talk to at least 3 mortgage brokers about your deal, as every mortgage broker may have access to a different loan program.
Here is the hit list of what should be included in a Good Faith Estimate:
-Interest Rate
-Monthly Payments
-Taxes and Insurance
-Loan Amount
-Pre-payment Penalties
-Fixed or Variable Rate
-Term (Length)
-Amount of money needed to close (your check to bring to closing)
Tools - Possible Loan Options
Nick Porter
www.LawEnforcement1st.com
7575 E Redfield Rd, Suite 235
Scottsdale, AZ 85260
480-305-8900 Ext: 308
541-231-3040 Cell
480-718-8802 Fax
No comments:
Post a Comment