Monday, April 27, 2009

New Home Buying Tips

Purchasing a home in the Denver area can prove to be quite the difficult task, especially if you're a first time buyer and even more especially during these tough economic times. A huge part of the process of purchasing a new home will be securing financing for it, and this means finding a mortgage loan with a rate that will work well for you.

The first thing you need to do when you're looking to purchase a home is to look for an experienced real estate agent. The whole thing is a rather complicated process it's not as easy as a layman might think; there are massive amounts of paperwork involved, taxes and other more or less important details that the average person just isn't able to handle properly, at least not from their first try. You need to find an experienced and professional real estate agent that will help you with the entire process of finding a home, and ideally you'd find a Denver real estate agent with some knowledge of the mortgage procedures as well so that they can help you with that as well.

Even with a good Denver realtor you'd be well served to learn some things about the Denver real estate market so that you can become somewhat familiar with the various prices in the various areas, communities and neighborhoods. This is important because you won't want to buy a property that is overpriced, and while you're at it you should inform yourself about the amenities, any extra maintenance costs and other factors that may prove of importance before you sign on the dotted line of your mortgage contract.

After you become familiar with the real estate market you should get a personal inspection of the house, apartment or whatever you're purchasing. Don't take anyone's word for it, not even your real estate agent's because you may have different standards than he or she does, what would be fine to them just won't do in your book. You should also pay close attention to the surrounding area, the neighborhood, check if the utilities are working properly and if your neighbors have nice houses that look kept up. When you're inspecting your home make sure that you check the pluming as much as you can, check for leaks, dry rot, and don't forget to check the roof. Missing a bad roof will cause you to spend a whole lot of money that you never planned to spend in the first time.

Now we come to the financing issue. Even if this is your first home, and whether you find yourself in Denver or some other city, don't just accept the first mortgage loan offer that you receive. Mortgage loans are products like any other, this means that when you're looking for one you should do some shopping around and find a loan that works great for you. It's important to keep in mind that when it comes to the huge sums that one talks about home loans even a .05% difference in your interest rate will mean a great deal in the long run, especially if things take a turn for the worse. When looking for a mortgage loan, you also need to take into consideration that the loan contract will come with closing costs and other adjacent fees and charges that will hike up the price. These types of fees may include things like appraisal costs, escrow account fees, mortgage insurance, so make sure that you ask about these extra added costs when you start talking to your lender so that you don't get slapped with things that you're not willing to pay for.

(Source: Greg Garner)

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