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An Overview Of The Home Buying Process

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Does your head hurt looking at over-complicated guides on how to buy a home? Well it should, because most of those guides make the process more complicated then it really is. Let me relieve some of the stress with my step-by-step guide.

The most obvious thing that you have to do long before even thinking about looking at homes, is to go talk to your local credit union. You might think it’s obvious, but way too many people start researching and even visiting locations before they’ve even seen what they can secure in terms of a mortgage.

Then, the very next step is to find the right Realtor. This one is easy. Just look at their website. The one with the best website in your area is usually also the best person. Really, it is that simple.

Next, make sure to set very specific boundaries and lines on what you must have and won’t compromise on, what you find to be completely optional, and then which things are negotiable to you and by how much. You might think you know this stuff, but trust me, you want this stuff on paper. It’s easy to get carried away and lose sight. You really don’t want to be one of these people who goes “I only got 2 bedrooms, what was I thinking!?”

After all the boring core work is done, you are now ready for the fun stuff. Start exploring online to find out which locations you like. Start reading what people say (on actual real forums), and start looking at the listings for all the different areas. Once some locations pique your interest, pick up that phone and let the Realtor know.

Once your Realtor calls, it’s time to go do some serious work. Take that list you made in step 3, and start asking hard questions. These people are sellers, not your friend. Never assume things. Make sure to ask all that needs to be asked. Inspect everything, and check if everything fits your list and how much you can compromise on.

Eventually, once you and your broker have visited enough homes, you will either pick one home, or maybe like a few. In either case, let the realtor know. This is the point at which it’s the realtor’s job to get you the best possible deal.

If you would like to do a lot more research, I think that you can just yahoo a keyword like ruby hill homes or even fremont real estate. I wish you the best!

What Constitutes Home Loan Fraud?

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Even lying on your application is already a mortgage fraud. Perhaps your real estate agent says it’s no big deal, but IT IS actually a big deal. Then you start to think it’s really no bid deal because you don’t know that much and it seems that you doubt about being approved on your loan application.

FBI defines mortgage fraud as “any material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan.” This so-called ‘creative financing’ actually started in the 1970s. During those times, if the lender discovered that there was some false information on your application, you could immediately find yourself in jail and more often than not, it required immediate full payment of your loan or pay six-figure fines.

Here are some of the common mortgage fraud activities:

1. An individual claims a certain income or asset that s/he actually doesn’t have. 2. An individual gives an inflated appraisal in order to obtain a mortgage for more than a property is actually worth. 3. An individual pretends to be the borrower in behalf of the person who is actually buying a property. 4. An individual pretends to provide financial help to a financially stressed homeowner in order to skim off equity from the property.

Mortgage fraud refers to many activities by buyers, sellers, agents, and even mortgage lenders themselves, here are some of the mortgage fraud signs as mentioned in Fannie Mae’s Mortgage Fraud Overview (2007):

1. Loan participants/Motivations 2. Information discrepancies 3. SSN discrepancies 4. Document discrepancies 5. Undisclosed Mortgages

These indicators in Fannie Mae’s report was further broke down into Loan application, Credit Report, Employment and Income Verification and Appraisal. So, it is wise to be informed with these red flags so you can guard yourself as well as your investment and cash. If you are specifically involved in any real estate transactions, Fannie Mae suggests that you know the people with whom you do business with, educate yourself with the common mortgage schemes, ensure that every document is accurate, and report any suspicious mortgage fraud activity that you know.

Remember that the impact of mortgage fraud in Georgia Short Sales is tremendous so the best strategy is prevention. Protect your Lawrenceville Homes for Sale by educating yourself with the common red flags of mortgage fraud schemes.