Raleigh, NC (PRWEB) March 05, 2014
Consumers may get pounded when purchasing a home, so Andy May and Robert Terry explain the top five risks and how to avoid them. The home purchase is the single biggest liability for the vast majority of U.S. citizens. Making smart decisions and hiring the right people to advise the consumer is the only way to handle the risks. Here are the top five risks to purchasing a home (in North Carolina, Virginia or Florida):
Number 5 - Avoid the 18 year old adviser at the door. Simply because the person claims to be a Loan Officer, etc. doesn't mean they've had to earn that position. Currently banks and credit unions may hire 18 year olds to be "loan officers". Don't spend your money on an 18 year old mortgage adviser. Avoid the bad advice.
Number 4 - Don't purchase a home in a market that is too small (see past articles on appraisals written by Andy May for market size requirements). Andy May has written on the small market problem that the new appraisal requirements have caused. Unless the consumer can afford to pay cash, and all the neighbors can pay cash, for that home....avoid the small market problem that the new appraisal requirements have caused. Buy your home in bigger cities.
Number 3 - Purchase a single family home or be prepared to pay cash. The federal government has made changes to the underwriting criteria of condos and they aren't good. If the investor concentration approaches 50% then an all cash basis may exist for the condo development. Check the myriad and constantly changing guidelines of the government (sponsored enterprises) for changes.
Number 2 - Acts of God are not the Consumer's fault - but the consumer will pay for them. If your appraiser takes 2 or 3 weeks to do the appraisal - you'll pay for that. If the roof caves in on your property (think: buying a foreclosure) - you may pay for that. If the underwriting takes longer than the consumer would like - the consumer will pay for that. If it snows, and the banks close (which has happened quite a bit in the Northeast) the consumer will pay for extentions.
Number 1 - The consumer needs to research at least three people for the Realtor and Loan Officer position. The attorney is also selected by the consumer, but if the attorney isn't paying for the business (yes, sadly, this happens a lot) a good recommendation from the Realtor or Loan Officer should suffice. The Realtor and the Loan Officer work as a team, but find out if there is a CBA (controlled business arrangement) between them. If there is, that means money is changing hands. The Consumer should be very leery of the one-stop shop approach. Oftentimes the consumer doesn't get sound advice in the one-stop shop scenario. Additionally, the "Admin" fee from the big-box Realtor can get expensive. On a $100k purchase it may represent an additional 17% in commissions. If the consumer doesn't have a fiduciary (which a licensed loan officer is) then the consumer may spend thousands more in junk fees - without knowledge the consumer loses. Hire the best person - not necessarily the one that advertises the most or picks up the phone (desk duty person).
When thinking of purchasing a home give Robert Terry, Realtor, a call at 919-810-3912, with particular buyers agent focus in Raleigh, North Raleigh, and the surrounding areas. When hiring a Buyers' Realtor the consumer needs to hire a Realtor that 1) has familiarity with the area; 2) knows the inventory beyond the pictures; 3) the consumer can't afford a green agent; 4) a seasoned competent negotiator. Robert Terry meets these criteria with over 30 years of experience. Do not hire a sellers' agent to help the consumer seek a home.
Call Andy May if interested in getting pre-approved for a loan at 919-771-3379. Robert Terry and Andy May have over 40 years of direct residential experience and operate independently.
Get the most value out of a home sale or purchase by working with licensed professionals that have significant experience. Why risk your biggest asset to an 18 year old unlicensed person at a bank or credit union (these "loan officers" are often times unlicensed, although afforded lofty titles)? Find additional information from Andy May at Andy May's blog. ADRMortgage.com was founded by Andy May in 2005. Refinance, Purchase, VA, FHA, and nearly every loan product - for additional information, please go to http://www.adrmortgage.com or contact Andy May directly. License number 103418.