How to Build a Fire: And Other Handy Things Your Grandfather Knew by Erin Bried Page A
Authors: Erin Bried
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preapproved for a home loan. Find a mortgage broker, who can compare rates at various banks to find you the best deal, and get a letter stating how much the bank will allow you to borrow when the time comes. If you do find a house you love, and other parties are interested in it, too, you can wave this letter in the air like you just don’t care and the seller will know that you, above all others, actually have the financial power to do the deal. Point: you. Other guy: zero.
Step 4: Go hunting. Check the classifieds, scour the Internet, and put out an all-points bulletin with a broker, who will be able to show you properties on the market that will hopefully fit your needs. Just remember, brokers work for the seller, not you, so tell them what you’re looking for in a home and your price range, but keep your money cards close to your chest. However you do it, look at as many homes as you can, until you find one you love—and can afford.
Step 5: Make an offer. Once you’ve found a property you want, ask your Realtor or check Trulia ( www.trulia.com ) or Zillow ( www.zillow.com ) for comps, or prices that similar, nearby houses have sold for recently. Knowing what others have paid will help you get a sense of whether the seller’s asking price is too high (or, in rare cases, too low). When you’ve decided how much you’d like to offer, call the broker (or owner, if it’s for sale by owner) and submit your offer. He may or may not accept it, at which point you can either close the deal or make a counteroffer.
Step 6: Prep the deal. Once you’ve agreed on a price, the house goes “in contract” while you take care of business. Hire a home inspector, who will check the property for any major problems. (If some arise, the seller may decide to, or in some cases be required to, fix them before proceeding with the sale.) Finalize your loan. Line up your homeowner’s insurance, and then set your closing date.
Step 7: Close the deal. Once everything is in order, you’ll meet the seller, along with a bazillion other people (lenders, lawyers, and title companies), to transfer the title, pay transfer taxes, and receive the keys.
Step 8: Pop a bottle of bubbly. Congrats on your new home!
More Handy Tips
Before applying for a mortgage, make sure your credit is in good shape. Pay every debt in full and on time.
When you finalize your mortgage, add a rider to your contract that states that if the interest rates go down before closing, your bank will offer you the better rate.
Bring a digital camera with you while you’re house hunting, and take notes on each property so you can remember the pros and cons.
Just because a bank will loan you an exorbitant amount of money doesn’t mean you should actually borrow that much. Stay within your comfort zone, and spend no more than 28 percent of your gross monthly income on your mortgage payment, insurance, and taxes.
Schedule one final walk-through of the home before the closing to make sure everything looks good.
Set Your Terms
• • •
“I always thought a bargain was where both parties were satisfied in the end. Not that I got the best of you or you got the best of me.”
—C HUCK T ATUM
H OW TO N EGOTIATE A B ETTER D EAL
Step 1: Work up your courage. You’ll never get a discount if you don’t ask for one. Almost everything is on sale, if you know how to haggle.
Step 2: Know the market. Be realistic about the price you want. If every butcher is selling the same cut for six to eight dollars a pop, don’t expect to buy one for a dollar. But do ask your seller to match the lowest price. If you’re buying more than one, ask for a bigger break.
Step 3: Know your audience. You’ll be more likely to get discounts at locally owned stores rather than multinational chains and from managers rather than clerks. If you’re dealing with someone who can’t offer you a discount, kindly ask to speak with his superior. Be charming, if you can. Nobody wants to go the extra
Step 4: Go hunting. Check the classifieds, scour the Internet, and put out an all-points bulletin with a broker, who will be able to show you properties on the market that will hopefully fit your needs. Just remember, brokers work for the seller, not you, so tell them what you’re looking for in a home and your price range, but keep your money cards close to your chest. However you do it, look at as many homes as you can, until you find one you love—and can afford.
Step 5: Make an offer. Once you’ve found a property you want, ask your Realtor or check Trulia ( www.trulia.com ) or Zillow ( www.zillow.com ) for comps, or prices that similar, nearby houses have sold for recently. Knowing what others have paid will help you get a sense of whether the seller’s asking price is too high (or, in rare cases, too low). When you’ve decided how much you’d like to offer, call the broker (or owner, if it’s for sale by owner) and submit your offer. He may or may not accept it, at which point you can either close the deal or make a counteroffer.
Step 6: Prep the deal. Once you’ve agreed on a price, the house goes “in contract” while you take care of business. Hire a home inspector, who will check the property for any major problems. (If some arise, the seller may decide to, or in some cases be required to, fix them before proceeding with the sale.) Finalize your loan. Line up your homeowner’s insurance, and then set your closing date.
Step 7: Close the deal. Once everything is in order, you’ll meet the seller, along with a bazillion other people (lenders, lawyers, and title companies), to transfer the title, pay transfer taxes, and receive the keys.
Step 8: Pop a bottle of bubbly. Congrats on your new home!
More Handy Tips
Before applying for a mortgage, make sure your credit is in good shape. Pay every debt in full and on time.
When you finalize your mortgage, add a rider to your contract that states that if the interest rates go down before closing, your bank will offer you the better rate.
Bring a digital camera with you while you’re house hunting, and take notes on each property so you can remember the pros and cons.
Just because a bank will loan you an exorbitant amount of money doesn’t mean you should actually borrow that much. Stay within your comfort zone, and spend no more than 28 percent of your gross monthly income on your mortgage payment, insurance, and taxes.
Schedule one final walk-through of the home before the closing to make sure everything looks good.
Set Your Terms
• • •
“I always thought a bargain was where both parties were satisfied in the end. Not that I got the best of you or you got the best of me.”
—C HUCK T ATUM
H OW TO N EGOTIATE A B ETTER D EAL
Step 1: Work up your courage. You’ll never get a discount if you don’t ask for one. Almost everything is on sale, if you know how to haggle.
Step 2: Know the market. Be realistic about the price you want. If every butcher is selling the same cut for six to eight dollars a pop, don’t expect to buy one for a dollar. But do ask your seller to match the lowest price. If you’re buying more than one, ask for a bigger break.
Step 3: Know your audience. You’ll be more likely to get discounts at locally owned stores rather than multinational chains and from managers rather than clerks. If you’re dealing with someone who can’t offer you a discount, kindly ask to speak with his superior. Be charming, if you can. Nobody wants to go the extra
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