2901 Curry Ford Rd Suite 212 Orlando, FL 32806

Spend a Little, Save a LOT

Can you think of a bigger buying decision than purchasing a house? That sticker price is daunting enough, but since most of us finance our homes, the actual cost can be staggering! No wonder people want to save where they can.  In the shadow of a giant price tag, we want to watch our nickels and dimes.

Consider for just a moment, however: the costs associated with risk mitigation of your purchase are fractions of a percent over the life of your loan. Failure to protect yourself, on the other hand, can cost thousands, if not tens or even hundreds of thousands. Discovering you must replace the roof AFTER closing, for example, can run over ten thousand dollars.

Let’s look at some of these risk mitigation practices that masquerade as costs.

Shop Your Mortgage

There are several kinds of mortgages and mortgage plans. You’ll want to explore which choices are right for you. Your realtor can give you direction and suggestions. You’ve ideally pre-qualified and chose which option is best for you. You aren’t done yet. To find the best deal, poll several providers to find the best interest rates and closing costs within a two-week period. Normally, numerous credit checks ding your credit rating, but doing several close to the same time will not have a detrimental effect.

When you lock in your rate is dependent upon the market; you can lock in immediately, fixing your interest rate, or you can float until 10 days before closing and lock in at a more favorable rate. Confer with professionals to make the best decision.

Understand Closing Costs

A good faith estimate is exactly that; an estimate of your closing costs. Some fees will change; your realtor will walk you through likely scenarios. Bring your certified check for the agreed amount, your photo ID, and your checkbook for any overruns (it’s just as likely you’ll get a check back). At the contract stage, who pays which closing fees will be settled; closing is not the time to be haggling costs.

Home Inspection

Firmly under the heading of “better to know now than later” is a thorough home inspection by an accredited inspector. Don’t skimp here. Your uncle Bob who’s handy with a hammer may not be the best choice. A house consists of over a dozen industrial skills: electrical, plumbing, masonry, roofing, insulation, pest inspection, paint, drywall, texture, and a lot more. Inspection is a complex skill difficult to master. Get recommendations, and find an aggressive professional.

You should be allowed to shadow the inspector and ask questions. Ask to see a sample report completed by the inspector to make sure communication skills are competent to the task. You want a complete, detailed, and accurate report. I’ll be glad to direct you to winning inspectors.

Get Your Contract in Order

Inspectors often discover necessary repairs. This can be an opportunity to lower your costs; if you agree to make repairs, you can ask for a discount off the purchase price. Distressed properties such as bank-owned, short sales, or strapped sellers offer the house as-is. Your savings from the inspection then comes from knowing what needs to be repaired and if it’s worth your time and effort to do so.

If reducing the cost is not your priority, you can ask the seller to make repairs. Presuming they agree, your contract should detail the repairs that must be performed before closing. The myriad details of the contract need to be negotiated, fully understood, and completely put to rest before signing a contract. Let your realtor be a vital participant.  Your realtor can often negotiate with the seller to pay a portion of the buyer’s closing costs.

Get Superior Representation

Fearful of a realtor’s fees? Don’t be. Buyer representation will not cost you anything; the seller pays the commission. The listing realtor often splits their commission with the buyer’s realtor. We are responsible for streamlining your decision-making, offering you the best of choices, vetting those choices, and making sure your deal is a win-win negotiation. We help you find the right kind of properties, lend our professional knowledge, and protect your interests. We invest a great deal of time, gas, and continued training to ensure your purchase is the RIGHT purchase. Coordinating the deal with all parties – you, the seller, title companies, inspectors, lending institutions – and bulletproofing the process will save you far more than you spend. There’s nothing worse than those feelings that something’s been missed or you’re being taken advantage to sour what should be an empowering experience. My assistant helps me with the transaction by overseeing a 72-item checklist, ensuring peace of mind.

Walk Through & Home Warranty

Take a copy of your inspection report with you. It’s best to do the walk through when the house is vacant but it’s not always possible because the owner does not technically have to be out of the house until you meet at the closing table. Do not be afraid of offending the seller by checking everything. Your realtor will smooth out any hurt feelings and lend you a critical eye. I even check the carpet for fleas. No surprises! Obtaining a home warranty is good idea and often the seller will pay for it. A home warranty will cover repairs on various systems (electrical, plumbing, roof, A/C, etc) in the house for a year

Do you have questions this overview doesn’t answer? I’m only a phone call away.

Jeff Taulbee

Call 407.619.0101 or email jtaulbee@cfl.rr.com