How much house can I afford?

Determining how much home you can afford or what payment you feel comfortable with, can be a trying process. Calling lenders, looking at mortgage loan programs and interest rates can be confusing, to say the least. There is an easy way to get started and give yourself an idea of where you stand.

The first step is to find out what mortgage interest rates are at the current time. You can typically do this with a couple of phone calls to lenders or some quick looking on the Internet. Get your rates on conventional fixed rate loans. Then use Team Honeycutt’s handy table to see what your payment would be at different price ranges and interest rates.

To obtain a very clear picture of how much home you can actually qualify for, the best idea is to contact a reputable local lender and let them analyze your entire situation. Call us for recommended loan officers in your area.

Do I need an attorney when I buy a house?

Yes. We recommend anyone buying a house use an attorney. An attorney will make sure all terms of the contract are acceptable and help you avoid any future legal hassles. If you need help choosing an attorney, just ask. We can recommend attorneys that are very experienced in real estate transactions.

Are low-ball offers advisable?

A low-ball offer is a term used to describe an offer on a house that is substantially less than the asking price. While any offer must be presented, a low-ball offer can sour a prospective sale and discourage the seller from negotiating at all. Unless the house is very overpriced, the offer will probably be rejected. You should always do your homework about comparable prices in the neighborhood before making an offer.

How do I get the real scoop on homes I am looking at?

Home inspections, seller disclosure requirements, surveys and the agent’s experience will help. Disclosure laws vary by state, but in some states, the law requires the seller to complete a real estate transfer disclosure statement.
Here is a summary of the things you could expect to see in a disclosure form:

• Foundation, slab, fireplaces/chimneys, floors, windows, doors, ceilings, interior and exterior walls
• Electrical system, plumbing system, heating and/or cooling systems
• Built-in appliances (range/oven, attached microwave, hood/fan, dishwasher, disposal)

Sellers are also required to indicate any significant defects or malfunctions existing in the home’s major systems. A checklist specifies interior and exterior walls, ceilings, roof, insulation, windows, fences, driveway, sidewalks, floors, doors, foundation, electrical and plumbing systems. The form also asks sellers to note the presence of environmental hazards, walls or fences shared with adjoining landowners, any encroachments or easements, room additions or repairs made without the necessary permits or not in compliance with building codes, zoning violations, citations against the property and lawsuits against the seller affecting the property.

Some properties have accompanying covenants, codes and restrictions or other deed restrictions. Also, the home inspection and home warranty industries have grown significantly to accommodate increased demand from cautious buyers. Be sure to ask questions about anything that remains unclear or does not seem to be properly addressed by the forms provided to you.