Waterfront Lifestyles-Small Town and Country Living on the Lakes in Northeast Indiana

What is my first step if I am thinking about buying a home?

    Unless you are making a cash purchase, your first step should be to contact a lender to get pre-approved for a mortgage. Visiting a lender first will save you time and eliminate unnecessary stress later in the process. Some people find credit surprises that can take time to resolve. Your lender will tell you how much cash (if any) you will need for the down payment and closing costs. You will learn what you can afford and decide what you are willing to pay. This gives you a price range to guide your search. It is best to know your loan type and terms before writing a purchases agreement. In a time of rising interest rates, you can lock in a rate as soon as possible.

    Loan pre-approval gives you a stronger bargaining position with the seller when you submit an offer. The seller will know you are a serious buyer with documented purchasing power. Securing you financing first will eliminate the risk of falling in love with a home only to find out that you can't get a loan, the house is out of your price range, or that the offer from a buyer with pre-approval was accepted instead of yours. It is very important to maintain your credit and not make any major purchases while searching for a home. Your credit may be checked again during the closing process.

    If you don't have a lender, I have worked with many local lenders and can recommend one. There are many loan programs available to meet your specific needs. Your credit history, income, available cash, assets, and military service can all help determine the best type of loan for you. I know lenders who will check all of this for you and tell you what you qualify for. And if you can't qualify now, they will tell you exactly what you must do to qualify for a loan.

Once pre-approval is out of the way, you know your price range, and it is time to start shopping with confidence!

Have a question? You can submit your question by phone or text at 260-336-HOME (4663) or by email to : question@karencanhelpyouhome.com.

What is a survey? 

What is a FHA Loan?

• No Minimum Credit Score Requirement- you can document alternative credit  (rent and utility bills, car payments and insurance).
• Self Employed buyers can document earnings with their tax forms.
• Chapter 7 Bankruptcy must be 2 years old, can be in Chapter 13, prior foreclosure must be 3 years old.
• Not just for low priced homes-the LaGrange County loan limit is $200,160.
• If you find a fixer upper or a home that needs repairs, FHA has a 203k program to have the cost of these repairs in your home loan.
• Pest, Well, Water and Septic aren't required unless the FHA appraiser or lender sees a problem.
• The FHA appraisal process no longer requires minor repair work be completed- only safety or structural issues must be addressed.
• You can have  a family member as a cosigner, and have a down payment that is a gift.
• You can get a loan for a double wide manufactured home.
• Rates/terms are comparable and sometimes better than a conventional loan.
• You can write an offer requesting the seller pay most closing costs.
• They no longer require sellers to pay high fees to offer FHA financing to buyers.
• FHA has programs in place to help you keep your home if you encounter problems with your mortgage.

What is Earnest Money?

    Earnest money is a deposit that is made by the buyer to the seller along with an offer to purchase. The purpose of this deposit is to show the seller that the buyer is serious about completing the purchase. If the buyer fails or refuses to complete the purchase, the seller will receive the earnest deposit. The only exceptions are if the sale is not completed because the seller didn't meet the terms of the agreement or if the reason for the buyer's refusal is one of those stated in the purchase agreement. If the sale is completed, the amount of the deposit is applied toward the purchase price at the closing.

    The amount of the earnest deposit can vary depending on local customs, type of property, and the amount of the purchase. A larger deposit can strengthen an offer. When a purchase agreement is accepted by the seller, the money is deposited in the escrow account of the listing broker until the transaction closes or the agreement is terminated. If the buyer fails to submit the earnest money, the seller may terminate the agreement.

    Because there is risk involved in the submission of earnest money, it is important for the buyer to know the reasons that are acceptable for not completing the sale and what will cause the loss of this deposit. A purchase agreement is a binding contract that should be fully understood before it is signed.

Have a question? You can submit your question by phone or text at 336-HOME (4663) or by email to: question@karencanhelpyouhome.com.

What is the MLS?

    The Multiple Listing Service has a database of properties that are listed for sale and that have been sold. It has detailed information about land, homes, and commercial property for sale in the area. Our local MLS covers the counties of LaGrange, Noble, Steuben, and DeKalb. Realtors® submit their property listings there and use this database to help determine market value of a property before it is listed by a seller or purchased by a buyer. Agents can also set up searches and email listings to their clients.

    Sellers benefit from the MLS because their property information becomes available to all of the agents in the area who are offered part of the sales commission as an incentive to show it to their buyers. This database can be searched directly by consumers at the website of our local Board of Realtors® and on various firm and agent websites with "Search The MLS" buttons. The public information has fewer details, but does have additional pictures.

    Buyers benefit from the MLS because they can search for properties and find more information about a property they see for sale with a sign in the yard or in an advertisement. Properties are identified by their unique MLS#. Another benefit for buyers is that agents who belong to the MLS can search and show them any of the properties; even those listed by other agents or companies. So, instead of contacting many different agents, they can find one agent they are comfortable with to represent them as their buyer's agent.

I can show you any house in the area-listed by any agent or firm. I can contact homes that are listed for sale by their owners and represent you in your purchase.

I can also set up a search that will send you new listings that come on the market AS SOON as they enter the MLS system.

Have a question? You can submit your question by phone or text at 336-HOME (4663) or by email to: question@karencanhelpyouhome.com.