Pre-qualify for a loan
As you enter the search for a new property, it’s best to have your financial cards in place. By pre-qualifying for a loan, the lender is telling you the most money they would give you if you were to go through with the mortgage process. The pre-qualification process will help keep you on track and ensure that you are looking for homes within your price range. Use online mortgage calculators to help visualize what your monthly payments will be, as well as many other valuable calculations.
Use the internet to educate yourself on current interest rates and to research lenders to find one that has a good reputation and desirable financing package. It’s important to shop around for the best interest rate. The difference of a half point on your interest rate can get you approved, or rejected, for a loan. Loans are granted in part on your income ratios, and a measly half point can push you outside of the acceptable margins for qualification.
When investigating various financing packages, ask about fees and any other charges that might be added on at the end. It’s expected that you will need to pay for an appraisal, copies of credit reports, flood certificates, points on your mortgage, and other fees. If you are denied credit based on your credit history, you have the right to request a copy of your credit report from the reporting agencies. Review it closely to be sure there are not any errors on your report.
Picking the Home That’s Right For You
You’ve found the handful of properties that you’d like to investigate further. The next step is to carefully research each one to get a complete picture of the properties. Many town shave public listings online of property, assessed values, past sale prices, etc. With this information, you can see what the current owner paid for the house. If you cannot find this information, you should be able to see what comparable properties have sold for in the area. Many states and municipalities have their own websites. One good example is the state of Maryland. Their website is www.dat.state.md.us/sdatweb/charter.html.
Before the internet, to get this comparable information you would have to go through a real estate agent or sift through complicated paper land records in your town’s records. Now, arming yourself with this essential information is just a few mouse clicks away. If you are unsure about which town you should live in, simply go online to see what the tax rates are in the various localities with in your region. Also check out if your state or town has any tax credits, like first time home buyers, senior citizens, or veterans.
Another great tool on the internet is a Cost of Living Calculator. This is useful if you are thinking about relocating to another state. Finding out what it will cost you to live in Marietta, Georgia vs. Oakland, California is certainly helpful in the decision making process. Try www.homefair.com/calc/salcalc.html for starters.
If you have kids and you are moving to a different school district, you’ll want to research your new town’s schools before buying property. Check out the many different online tools to gauge a district’s graduation rates, SAT scores, college attendance rates, and more. Almost every aspect of moving can be handled online. You might be able to use the internet to set up your utilities, or transfer your existing ones.
If you are moving your primary residence, you will need to change your address with the postal service. You used to have to fill in a form and mail it. Now you can finish this task in minutes online. Go to www.usps.gov.
Finding the Best Real Estate Attorney or Settlement Agent
For a smooth real estate transaction, it is essential to have a seasoned real estate attorney or settlement agent that knows the ins and outs of the business. Look for an attorney that has experience specifically in real estate. Find someone who is comfortable online and will be able to communicate with you via email and fax. Most of the paperwork and documentation process can be handled this way,
minimizing the number of time consuming face-to-face visits.
A real estate attorney’s role is relatively small until the end of the transaction, unless there is a problem. Your lawyer MUST fully understand the local process for real estate transactions as well as the local, state, and federal laws. It is very important that they are on top of the latest changes in the law to be able to properly represent you.
The real estate attorney can help you complete the lender’s paperwork, and can anticipate problems before they occur to handle them efficiently. This includes liens, title problems, etc. Their purpose is to create a stress-free transaction. To find out more information about the closing/settlement process, go to: www.stressfreesettlements.com.
The Benefits of Using the Internet
Over three percent of all online web shoppers buy real estate on the internet. It’s amazingly popular to buy property online thanks to the accessibility and ease in which information is available via computer. Industry experts are anticipating the current 3% of internet real estate buyers to increase drastically over the next 5 years. They are also expecting financing that’s arranged online to increase substantially in the near future.
In this age of abundant information, you can take an online video home tour, narrow your property search by factors that are important to you, and find a real estate agent that specializes in your niche market. You can even use the internet to calculate out mortgage payments, and ask the mortgage broker questions online.
Finding Your Investment Online
There are thousands of websites that list properties for sale. Much like the classifieds and the Real Estate section of every city’s newspaper, these sites provide photographs, descriptions, and pricing information. There are companies that focus all of their marketing efforts online, as well as tradition real estate agencies who also maintain websites for their property listings. Here is a listing of a few of the many online companies that offer real estate listings:
