Beat Tax Credit Deadline With Checklist
the Al & Dee Real Estate Group at RE/MAX by the Gulf 

   Wouldn't be great to have a home-buying checklist? Something you could stick in your pocket so you remember to ask all the right questions when you start looking for a home in Biloxi, Ocean Springs, Gulfport or pretty much any city on the Mississippi Gulf Coast?

   As we count down the final weeks to take advantage of the $8,000 first-time home buyer tax credit and $6,500 long-term homeowner tax credit, it's helpful to have a checklist all home buyers can turn to. So here it is!

• Pull a copy of your credit report. For about $9 you can see, and get a copy, of your credit history. Places like www.annualcreditreport.com offer the history of the three major reporting agencies (Equifax, Experian and TransUnion) for free. Take a look at what you have... you never know. Remember everything can be fixed. If you have an item that should not be there, you can have it removed, but you have to work at it.
• Gather your paperwork. Collect documents a lender will ask you to provide. These include two month of bank records (savings and checkimg), W2, and two years of tax filing records. If you are self-employed, the lender will ask for a few additional documents such as a Profit and Loss Statement and annual budget.
• How much can you really afford. Just because a lender says you can afford a $3,000 monthly mortgage note doesn't mean you can jump on it. Sit down with your mate (if you have one), look at your financial goals and objectives and determine what you can afford every month to pay for mortgage. Please don't forget to estimate your annual taxes and insurance... specially your insurance - liability, flood and wind.
• Shop around for a mortgage. Talk to at least five different lenders. Most lender will offer 15 and 30 year fixed mortgage rate.  As an average, getting pre-funded before you negotiate a contract to buy a home saves about $5,000. When shopping for lenders ask to see a copy of their Good Faith Estimate and compare them side by side.  This estimate identifies the cost a lender will charge you to give you the loan.
• Understand the difference between what you want and what you need.  Just because you want a five bedroom home with five bathrooms and a pizza over in the kitchen doesn't necessarily means you need all that. The concept is to get everything you absolutely need in a property and a few things you want - without breaking your bank account.
• Identify the neighborhood you want. Write down the type of neighborhood you want. From sidewalks, to near parks, to even being close to shopping, hospitals, schools and highwayd. Drive around similar neighborhoods and get the feeling of it in the morning, in the evening, at night and on the weekend.
• Shop for a real estate agent. Interview at least three real estate professionals for the best qualifications. You want to think about selecting a seasoned agent (15 years or more experience) instead of your aunt Millie who does this part time. Select an agent certified in working with buyers (ask to see an ABR designation) and a Certified Residential Specialist (CRS) experience certification. Select an agent who works in a team concept, instead of an agent working alone. Having a team of specialists in each area of real estate, such as research, negotiations, and closing activities, gives you the advantage. We like to be one of those agent you interview. Call us at 222.374.0002 and check out our web site at www.alndee.com.
• Understand the true value. Do you homework and ask questions of your agent such as: (1) What is the current list to sell ratio in a neighborhood you like; (2) what is the absorption rate in this neighbrohood; (3) what is the average days on the market in this neighborhood; (4) is there a monthly homeowners association; (5) check the flood maps and see if you would need additional insurance.
• Preview homes on the MLS first. Before going out driving around looking at homes, sit with your real estate agent and look at selected homes that are, at that moment, available for sale. Don't rely on home magazines. It takes about three weeks to submit and ad to a magaznine and by the time it's printed and distributed, most homes have already been sold.  Besides, on the MLS you'll have an opportunity to see a virtual tour, and many interior and exterior photos of a home. Usually you'll get rid of about 50% of the homes you were planning to see. Don't see more than five homes in one day as they tend to look the same after a while. Bring your digital camera and take photos of the home you like the best. A selection formula we use is always compare each home with another one and have in mind the best three homes.
• Negotiate an offer. Work with your agent and determine a reasonable offer. Too low of an offer and you'll insult the seller (and he/she won't play anymore). Make it too high and you'll pay more than the home is worth. Have your agent complete a market analysis (CMA) of the home.  As of this writting most homes on the Mississippi Gulf Coast are selling for abot 95% of the list price. However, this percentage varies from neighborhood to neighborhood. Consider who pays for the closing costs... this is where the Good Faith Estimate you have from your lender is critical.
• Don't panic. Once the offer has been accepted let your agent take care of the under contract activities. There are a lot of them... home inspections, well and septic inspections, air and mold inspections, appraisal and termite inspection, environmental inspections, and lien and title examinations. Stay focused and talk to your agent at least twice a week.  Please, please, please, do not go on a buying trip of furniture, cars, curtains, appliances. These purchases may increase your income-to-debt ratio and may, a few days before closing disqualify you from the loan.

   Clip this home buying checklist and keep it in your pocket, so that you're always making a smart move.

NEED A CMA? Or do you know of someone who may need to know their home's worth? Perhaps you would like to know what the home down the street sold for? Regardless, give us a call and we'll get right on it. Call us at 228.374.0880 or send us an email and we'll call you right away.

Contributed by Al & Dee Allegue
Contact Us | (228) 374-0002 | www.alndee.com
Complimentary Mississippi Gulf Coast Real Estate Search