Do You Need Private Mortgage Insurance?

Do You Need Private Mortgage Insurance?

Ready to Get Started? 4 Tips to Help You Buy the Home of Your Dreams

by Luke Fields

If you're ready to start shopping for your first home, make sure you're ready for the process. There's more to it than simply finding the right house, and making a bid. In fact, if you're not prepared, you could find yourself locked out of the competition. Buying a home is like a well-constructed game, and if you don't know the rules, you won't be able to play very well. Unfortunately, that could mean you either don't get the house of your dreams, or you end up paying too much for it. Here are four home buying tips that will help you win the game.

Do Your Homework

When you start shopping for a new home, it can feel like the sellers hold all the cards. To a certain extent, they do. After all, they're the ones selling the houses. However, don't forget that you also hold some valuable cards. Remember, you're the one with the money to buy the house. To make sure you're holding the right cards, it's important for you to do your homework.

When you find a house you're interested in, find out as much as you can about the house, and the sellers. For instance, is the house in foreclosure? Are the sellers desperate to move? The more information you can gather, the more prepared you'll be to negotiate a better deal for yourself.

Don't Be Afraid to Ask for What You Want

When it comes to buying your first house, don't let inexperience hold you back. Don't be afraid to ask for things, even if you think the answer will be no. For instance, if the inspection shows roof damage, don't be afraid to ask for a replacement before agreeing to buy. If you want a quicker escrow, ask. You might be surprised to find out how much a motivated seller is willing to give up for the right buyer.

Do Be Prepared to Swoop In

In a tight housing market, you need to be prepared to jump at just the right moment. Dragging your feet, or not being prepared, can cause you to lose out on some really good deals. One of the best ways to be prepared is to have your pre-approval already in hand. That way, you can make an offer the moment you find the right house.

Don't Sweat a Few Dollars

When you're buying a house, you want to make sure you get the best possible deal for your money. Unfortunately, holding out for a few dollar win can shut you out. If the house of your dreams is priced a few thousand dollars above what you wanted to spend, decide whether it's more important to hold out for a reduction, and possibly lose, or to buy the home of your dreams. In most cases, a difference of a few thousand dollars isn't going to make your mortgage payment go up more than a few dollars each month.


About Me

Do You Need Private Mortgage Insurance?

Welcome to my website. My name is Larry Silva, and I want to talk a bit about private mortgage insurance. You may have heard the term PMI mentioned when you were in the process of purchasing real estate. When I first heard my lender talking about PMI, I was very confused. It was my realtor who sat me down and explained what private mortgage insurance was and when someone is required to purchase it. He told me that PMI is not lifelong insurance; it can be cancelled when the mortgage principal balance reaches a certain point. Once it was explained to me, private mortgage insurance was no longer a mystery or a confusing concept. I would like to pass on what I learned and hope that you find it to be of value.