5 Mistakes Emotional Homebuyers Make

5 Mistakes Emotional Homebuyers Make

Agents say emotional mistakes are common, sometimes good deals are passed up or too much is paid for the “dream home.” Buyers shouldn’t beat themselves up, it is one of the biggest purchases made in life, they just need tomake sure it's smart investment not an emotional purchase. 1. Looking for a better deal: Today’s market has trained homebuyers to think there is always a better deal waiting, although prices may drop, it is best to play the odds now rather than wait. 2.Love at first sight: View at least 5 properties before signing a contract and making an offer. Jumping at the first or second home right away usually results in buyer’s remorse or overpaying and the inability to sell later at a reasonable price. 3. Overpaying for perfection: Buyer’s typically insist they have found the perfect home, but may be overlooking the price they are paying for it. Emotional attachment usually kicks in an a buyer may overextend financially.

4.Equating “Short Sale” with “Deal”: Most buyer’s run at the chance for a short sale or foreclosure because they think it's a deal; most listing prices are bid on and receive higher offers than the actual listing price and it becomes a contest. Many actually overpay because they aren’t careful and will stop at no cost to get the home. 5. Low-balling instead of negotiating realistically: All buyers want the best deal and lowest price but it is best to make a realistic offer not too far off what the homebuyer expects to pay; if they under offer, they will risk rejection or lengthening process with sellers. David Ruch has been in the real estate and lending business for over 26 years. If you would like to get preapproved or need free financial advice,  call David today at (303) 888-6114.

Things to Evaluate When Choosing a Home

There are a few things to consider when purchasing a home vs. a
condominium, condo.
There different association fees included for a home vs. a condo. Condo
fees would cover: heating, security, shared amenities (pool & exercise
equipment), cable, air conditioning, and electric. When you buy a home, you
become responsible for the additional costs necessary to operate a home:
water, sewer, trash, electricity, gas and hazard insurance. Hazard insurance
covers the structure of the building and exterior.
If there are any incidental costs to repair the home, for the condo it
would be covered in the monthly dues, for a home the home owner would need to
cover the out of pocket costs to repair the home.
There might be restrictions on owning a pet in a condo, whereas in a home,
you could have pets.
There are things to consider when buying into a “shared ownership
community” – a homeowner’s association or a condominium association.


Either form of ownership is a good option, but its important to find the
right fit for you!
If you would like Dave Ruch to help you look for a condo or home that will
best fit your budget and needs, give him a call today or search our database
of over 30,000 homes free. If you would like to start out with a rent to own
property, Dave can help you with that as well.
David Ruch has been in the real estate and lending business for over 26
years. David can help look at your credit score and see how much home you can
afford. If you would like to get preapproved or need free financial advice,
call David today at (303) 888-6114.
Call
Today!!
(303)
840-9252

Making the Leap to Purchase a Home

Making the Leap to Purchase a Home

A decision has been made to buy a home, the down payment has been saved and touring local homes is now a weekend ritual. Months and maybe years pass and still no change. This is common for many first-time home buyers. Hesitation can be overcome by giving these steps a try: Get comfortable with your finances: Anticipate the costs such as taxes, homeowner’s insurance, utility bills and commuting. This will help determine the maximum purchase price. After the first year, taxes benefits will being. Partner with an agent: The real estate market can be very confusing; our teams of buyer’s specialists and realtors have an immense amount of knowledge in the housing market and can assist with an questions or concerns. Accept some risk: Realize that everything comes with a risk but also has the ability to reward with benefits. Ask others about their purchasing experiences and make sure to have cash reserves as a safety net. Decide the "must haves": Garage, finished basement, gourmet kitchen? Make a list of the most important features. Sometimes a sacrifice may be required if the rest of the house is perfect. Do not put an offer on the home if it doesn't appeal at the get go.

Be ready to bid: Regardless of the market, great houses don’t stay on the market long. Sometimes one open house leads to three offers. If it’s the one make the best offer possible. The offer may not always be accepted but it’s always better to know that an attempt was made. Reap the award: Owning a home can be one of the most exciting and satisfying things in life. It’s also an investment that can pay personal dividends as well as financial. David Ruch has been in the real estate and lending business for over 29 years. David can help look at your credit score and see how much home you can afford. If you would like to get preapproved or need free financial advice,call David today at (303) 840-9252. Call Today!! (303) 840-9252

HUD Homes vs. Bank Owned

Homes vs. Bank Owned

Definitions: HUD Homes are FHA-Insured or mortgaged homes that has gone into foreclosure, HUD works to recover the loss on the foreclosure claim. Bank owned homes also known as real estate owned or REO, they failed to sell at foreclosure auctions so they revert back to the bank. Similarities: Both types of homes are the result of foreclosures and neither organization will provide financing for the home. Both homes are on the market in “as is” condition, repairs will not be made on homes prior to purchase and there will be no negotiations. Differences: HUDs can only be purchased through an agency that is under contract with HUD. They are first offered to primary owners during “offer period,” if buyers aren’t qualified then investors may bid. HUD homeowner must live in the house for at least a year and cannot purchase another HUD for two years. Bank owned homes are managed by a loss mitigation department within a bank; their goal is to minimize losses caused by defaulted loans. Benefits of HUD: They pay the real estate agent’s commission and closing costs. Some HUDs only require $100 down. For low to moderate income families some HUDs are only $1 each; there is also a 203k rehabilitation loan which helps the homebuyer make repairs.

Benefits of Bank Owned: These homes are usually sold at below-market prices with low down payments and low interest rates. The bank takes care of clearing any liens or claims on the property. Prices may be negotiated as well as lending terms and closing costs. Our Team of Buyer's Specialists and Real Estate Mortgage Planner's are equipped with knwoledge on HUDs, foreclosures and bank owned homes. For more information contact our office or visit our website www.denverhothome.com David Ruch has been in the real estate and lending business for over 29 years. David can help look at your credit score and see how much home you can afford. If you would like to get preapproved or need free financial advice,call David today at (303) 840-9252. Call Today!! (303) 840-9252

PURCHASING A HUD HOME

Purchasing a HUD home is different than purchasing a regular home; in order to understand the process and how it works, there are a few tips buyers should know. 1. Almost anyone can buy as long as you can obtain a mortgage or have cash. HUD homes also must be owner occupied which means you cannot purchase the home as an investment; the buyer must occupy property. 2. You will need a pre-qualification letter from a lender or proof of cash funds in the amount greater than the property price. HUD will not provide a home loan; it is the buyer’s responsibility to make financing arrangements. 3. HUD houses for sale are sold in AS-IS condition, and will not do any repairs. They do provide a Property Condition Report on some listings but no all. The PCR is similar to a home inspection. Inspection can be done once there is an accepted contract. 4. Earnest money requirements are $1,000 if the price of the home is over $50,000 and $500 if the price is under $50,000. Must be in the form of a cashier check, bank check, or money order. Return of the earnest money is not automatic if buyer changes their mind.

5. To make bids on HUD homes for sale you have to use a real estate agent. The bidding process is done on the internet by an approved real estate agent. Purchasing HUD Homes is a lot different than buying a house from a seller-owner. Before making a bid on a HUD house, it is necessary to learn the pitfalls and opportunities of buying a HUD home. Our teams of buyer’s specialists and mortgage planners have extensive knowledge on HUD homes as well as others in the market. David Ruch has been in the real estate and lending business for over 29 years. David can help look at your credit score and see how much home you can afford. If you would like to get preapproved or need free financial advice,call David today at (303) 840-9252.

How Much Home Can I Afford?

Many buyers want to know how much home they can afford.There are a few factors that impact how much home you can afford. Some of those factors are: 1) What is your credit score?The higher the number you have concerning your credit score, the lower your interest rate will be. The lower your interest rate is, the lower your monthly house payment will be. Credit scores range from 300 to 850. All loans you have had in the past and how faithful you have been in making payments affect your credit score. If you would like to find out what your credit score is, call David Ruch today. He can help you find out what your credit score is and help you find a home with a credit score as low as 580. 2) How many dependants do you have? Dependants are how many people depend on you for financial help. Consider school costs, car payments and other monthly costs when determining your house payment budget. Make sure you leave some money in your budget for emergency funds. 3) Where would you like to live? Prices vary depending on which city and in which suburb you want to live. Sometimes just by changing the suburb you want to live in will give you more house for the money you are investing.

4) How much money do you have for a down payment on the home you are buying? The money you are using as a down payment needs to come from savings. The more money you can put down on the home you are purchasing, the lower your monthly payment will be. 5) What is the current interest rate? Interest rates are still very low and now is a great time to invest in a home. Lower interest rates will help keep your monthly payment lower. David Ruch has been in the real estate and lending business for over 26 years. David can help look at your credit scores and what loans would be best for you. If you are curious what your credit scores are and/or would like to see how expensive of a home you can buy, call David today at (303) 840-9252. www.real-estate-denver-colorado.com

Short Sale Pitfalls

When managing a short sale home, there are a few pitfalls and things to avoid. It's important to request the existing lender's information and request the loan number and bank info on a short sale home. As soon as you can, request the payoff information.

Some lenders provide a short sale

package. It's a good idea to request this information if available.

When handling short sale home, there are a few pitfalls and things to avoid.

Things to Avoid in a Short Sale

1. If the seller has a FHA loan, do not advise the seller to move out. It's a good idea for the seller to stay in the home.

2. Don't promise unrealistic

time deadlines.

3. Don't spend money on an appraisal until the lender has approved the short sale.

4. Don't send an incomplete

short sale package to the lender. There is a good chance it will get thrown out of the pile of considered offers.

Short Sales are more complex than normal real estate transactions. It's important not to make false promises about the short sale process.

If your offer is rejected by the lender, don't give up on the process. Many times you can resubmit the same offer. Sometimes lenders will do what's necessary to avoid foreclosure, so they might consider your offer the 2nd time.

The real estate industry will be dealing with short sales for many months to come. It's important to learn about things to avoid.

David Ruch has been in the real estate and nding business for over 26 years. He would love to help further explain what a short sale is.

When you find a home you would like to make an offer on, there are several types of loans that can be secured. David can help look at your credit scores and what loans would be best for you. If you are curious what your credit scores are and/or would like to see how expensive of a home you can buy, call David today at (303) 840-9252.