Tuesday, December 12, 2017

10 Tips for Home Buying and Selling

Follow these steps to save the most on one of the biggest transactions you'll ever make

Buying or selling a home for the first time is like learning to play chess. There are terms to master, skills to learn, strategies to grasp, competitors to outmaneuver. These home buying and selling tips can help you capitalize on strengths and play down weaknesses:

Buyers: Edge Out the Competition

Establish a price range. Use Redfin’s home-affordability calculator. This home buying tool considers not only your income and down payment but also total recurring monthly payments such as car payments, student loans, and credit card minimum payments.

Clean up your credit. If your credit reports are accurate, the home buying process is likely to go more smoothly. Read “Are Mortgages Now Harder or Easier to Get?" for more for information.

Get preapproved. Usually, that means a mortgage lender has checked your credit reports and determined how much it could lend you. It’s one step better than prequalification, in which a lender just gives you an idea of what you can afford. Lenders use different terminology, though, so make sure you ask for clarification. For instance, EverBank, based in Jacksonville, Fla., uses the term “preapproval” for what other banks define as prequalification. And what most banks call a “pre­approval,” EverBank terms a “credit only approval.”

Sweeten the deal. Cash offers or large down payments get attention in a competitive bidding situation when you're buying a home. But other considerations, such as flexibility with the closing date and shorter inspection periods, can sway sellers.

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