1.Selecting a real estate agent- If you select the right real estate agent to help you buy, you have done half the job. A good real estate agent will guide you through the entire process of home buying, particularly the financial ones and will make the experience much easier for you. An agent is well- acquainted with all the important things you will want to know such as the neighbour hood, safety, the quality of schools etc. of a particular place you may be considering. And the best part is- you don’t have to pay the agent anything, the seller has to make the payment.
2.Inspecting the home-It is always a good idea to hire an independent professional home inspection service before you buy a house in CA. It is a visual examination of structural, mechanical, electrical, plumbing systems inside the house by a professional. This includes a general home inspection such as roof, termite, foundation, drainage, walls, windows, doors etc.
3.Disclosure statement- California law says that a seller should provide the buyer the complete real estate transfer disclosure statement before selling a house. This lists many features about the house, the land, the area where the house is located. This statement must disclose the structural defects or other problems about plumbing, electrical etc., if any.
4.Know about RESPA-The US department of Housing and Urban Development administers several regulatory programs to ensure equity and efficiency in the sale of housing. Real Estate Settlement Procedures Act (RESPA) protects buyers by mandating a series of disclosures that prevent unethical practices by mortgage companies and provides information about real estate settlement services to the buyers.
5.Types of loan-There are different types of loans to choose such as fixed rate, adjustable rate, balloon payment, negative amortization. Here you need the help of your real estate agent.
6.Closing costs-In CA, you can expect to pay for the following charges, called closing costs at the time of purchase of your home. a. loan origination fee b. processing fee c. appraisal fee d. document preparation fee e. closing fee f. title insurance
7. Assistance program for first time homebuyers-Although many people can afford a mortgage payment and associated costs, the thought of coming up with a substantial down payment often restrict them from buying. Charity organizations and federal institutions are there to assist them.
By now, most people have realized that home values in many parts of the country have been falling. Unfortunately, because of economic machinations, irresponsible financial behavior on the part of the current Administration and federal economic policies that for a generation have favored large, wealthy corporate interests and individuals while actively seeking to hurt the average American worker, many homeowners were lured into “adjustable rate mortgages," or ARMs. Aggressive and even predatory lending practices by the mortgage industry has now led to major problems as on one hand, people own more on their homes that the homes are worth, and are now facing significantly increased payments as the fed raises interest rates. On the other hand, the inability of those with mortgages to meet their payments has caused many lenders to go under.
In the great conservative tradition of the past 27 years, the current Administration has eagerly come to the rescue of these lenders, while allowing average hard-working, tax-paying citizens to go under. The result: very motivated buyers in many parts of the country.
Wealthy investors are taking great advantage of the situation in many parts of the country, adding greatly to their portfolios by buying up these homes at bargain-basement prices from economically distressed, hardworking families facing foreclosure due to circumstances created by an irresponsible, pro-corporate U.S. government.
When it comes to the Phoenix area, there indeed has been some dip in the value of houses, however, due to a strong local economy and an large influx of new residents, this dip has been far less dramatic than in other parts of the U.S. The median home price, while somewhat lower than a year ago, is still over $20,000 more than it was at the height of the boom in 2005. Therefore, when buying a Phoenix Arizona home or condo, you should do it with the intention of staying in that home for at least five years; looking at such a purchase as a chance to “flip" the property for a quick profit would be a grave financial mistake.
On the other hand, when all issues are considered – such as the quality of life, the strength of the local economy and the many advantages of living in the Phoenix metro area with all that it has to offer, purchase of a Phoenix Arizona condo or home will most likely prove to be an excellent long-term investment. While nobody can predict the future, all indications point to a thriving, growing community in the Valley of the Sun in the coming decades.
Both Richard Brazil & Wayne Hemrick are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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