Tag: steps

Offer Subject to Inspection – What Does That Mean?

As a Realtor I have a whole dictionary for just real estate jargon.  One of the most confusing terms, and often buyers will get the wrong idea about their agent, is “offer subject to inspection.”  So allow me a moment to explain what on earth this means.

“Offer subject to inspection” is a typical hurdle for buyers to overcome when shopping for homes that are tenant occupied.  The term means – the buyer can physically go in and SEE the home AFTER an offer is accepted.  Sounds a little backwards right?

And no – your agent is NOT trying to strong arm you and force you to buy a home without evening seeing it!

Generally this clause is for homes which are tenant occupied.  In order to preserve the rights of the tenant to have the quite enjoyment of their home – the tenant has the right to refuse prospective buyers to come in and see the home.  That is – until an offer is accepted by the seller, then the buyers has the right to inspect the home.

How does this work you ask?  The buyer must write a REAL offer since the terms are binding once accepted.  When the seller accepts the offer, the buyer will have a certain amount of days which is written into the contract to actually go in and see the home for the first time.  If the home is to their liking and the buyer wants to proceed with the contract – they do.  If the home is NOT to the buyers liking – for just about any reason – during the agreed upon days – the buyer will have the right to cancel the deal and walk away without any harm to both buyer and seller.

So you found a home you like – how do you write an offer?  If there are inspections available before hand – it makes our job of writing the offer a bit easier since we have a good idea of what the condition is.  If there are no inspections, and we haven’t seen the home, we drive by and gather as much info as we can with our eyes from the safety of the car.  We write the offer as best we can with the information provided and once the buyer has seen the home and had inspections we proceed with the new information – either by moving forward or discussing the new information with all parties and find a common and suitable outcome for all parties.

As strange as it seems – it happens more than you know.  For some buyers, they cannot imagine writing an offer for a home without ever seeing the home.  For investment buyers, this very typical and generally have no issues writing up a fair offer to get in.  Of course, what happens after a buyer gets to see the home is a far different story.  I have experienced both follow throughs on the contract and recessions – so truly we cross that bridge together when we get to it.

Which is truly at the root of what us Realtors do.  We are the buyers and sellers guides through Real Estate – what can The Caton Team do for you?

Got Questions? – The Caton Team is here to help.  Email us at:

Info@TheCatonTeam.com

Visit our website at:   http://thecatonteam.com/

Visit us on Facebook:   http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp me at: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Ready to Get Pre-Approved? Here is your checklist…

The first step in becoming a home owner is getting pre-approved for a home loan.

These days, a  minimum of 3.5% is required  for FHA loans up to $417,000.

Otherwise you’ll needed between 10% and 20% for a down payment for purchases above $417,000.  Depending on your financial picture.   Note you will also need about 3% of your purchase price for closing costs.  We’ll review what closings costs are when we sit down together.

Before you contact a lender, gather the following items:

  • 3 months worth of pay stubs per person or other proof of income
  • 3 consecutive & most recent months of Bank Statements:  Checking, Savings, IRA’s, 401k, Retirement & Investment Accounts
  • Most recent Tax Return
  • Social Security numbers

To prepare for your appointment, take time to calculate your monthly/yearly household budget and determine you comfort level.  This will help you decide whether or not purchasing a home is right for you and your family.  Prepare a:

  • Household Budget
  • Bills & Expenses Budget
  • Future Budget factoring in your new home expenses.

We are here to help you each step of the way.

Got Questions – we’re here to help.  Email us at Info@TheCatonTeam.com or visit our website at http://thecatonteam.com/

 

Visit us on Facebook: http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

To read my personal journey through homeownership – visit http://ajourneythroughhomeownership.wordpress.com/  Enjoy!

Tips on How to Manage and Repair Your Credit

Establishing good credit is essential in today’s consumer environment.  It is most critical when considering the purchase of a home and acquiring a mortgage.

5 Key Steps to Managing Your Credit

  • Make your payments on time!

o   A late payment affects your credit quickly!

  • · Don’t max out your credit card – try to keep the balance at 50% or less.

o Its best to have a few cards at a half balance than 1 card maxed out

§ This rule is particularly true when you are shopping for a home loan

  • · Don’t close ANY OLD credit cards!

o You will loose your “start” date and never get it back.  The longer you have a card open the better it is for your credit score.

  • · Do NOT open Store credit cards (i.e. A department store or music store)

o However, if you already have some open – DO NOT CLOSE THEM EITHER – just keep them active and paid on time!

  • · Keep your credit open & active.  For the cards you do have – use them every 3 months – allow them to send you a statement and then pay if off!

o It does you no good to use it and then pay it off online when you get home – you need the credit company to report the use to the bureaus and this happens every 30 days (when you get your statement).

  • · Check your credit report every 3 to 6 months to prevent identity theft.

o Try http://www.annualcreditreport.com

  • · Do not pay for your credit score – too many inquires done yourself will bring your score down!

Key Steps to Repairing Your Credit

Much like managing your credit well – repairing your credit requires the same rules.  If you are shopping for a home loan and your score is too low here are some key steps to heal your credit.

  • · Start making ALL your payments ON TIME no matter what!

o Your credit score can heal itself every 30 days

  • · Start to consolidate your debt by paying off the high interest cards first while maintaining monthly    payments on the other cards.
  • · DO NOT OPEN any new lines of credit at all.

o When shopping for a home loan you could ruin your credit score and debt to income ratio with too many lines of credit.

  • · DO NOT use a “credit repair” company
And SPEND WISELY – being a homeowner is like being a squirrel – sock away that money for a rainy day and create a budget you can live with and save with.
Got Questions – The Caton Team is here to help – email us at Info@TheCatonTeam.com or visit our website at http://thecatonteam.com/
To read my personal journey through homeownership – visit http://ajourneythroughhomeownership.wordpress.com/  Enjoy!