Buying a
Home Guide to Getting Started
Guide to Home
Buying a Home Step-by-Step
Let's say one morning you wake up and
realize that, yes, buying a home is the
right thing to do for yourself. You're
tired of throwing away money on rent and
figure that it's time to get into a home
of your own. But you have reservations.
After all, if it's your first time,
you've got questions. You might be a
little nervous that you'll mess up, and
it's normal to feel that way. You are
probably spending hundreds of thousands
of dollars and making the most important
financial purchase of your life.
You will find
that being an informed individual about the home buying
process is empowering for you. Lucky for you that you
came to the right place. So let's get started buying
your first home!
Consider
if Buying a Home is For You
Many people harbor secret fears about
buying a home, and some of those fears
are justified. Not everybody is cut out
to own a home, and if you're one of
those people, it's better to find this
out now than when you're under contract.
Renting/Buying
You might
decide that renting is better for you than buying,
because buying a home has its drawbacks.
Reason to
Buy
On the other
side of the coin, there are many more benefits to
buying. Keep these reasons in mind if you start to get
cold feet.Pride of ownership is the number one reason
why people yearn to own their home. It means you can
paint the walls any color you desire, turn up the volume
on your CD player, attach permanent fixtures and
decorate your home according to your own taste. Home
ownership gives you and your family a sense of stability
and security. It's making an investment in your future.
Should you
buy a home before getting married?
Tips for home
buying with a partner or significant other before tying
the knot, plus how to handle the financial details of
homeownership without plans to ever marry. Best wishes
on your upcoming nuptials. I believe that every engaged
couple wants to choose a home to buy as carefully as
they had selected each other. Many couples buy today
before marriage because they find it's more convenient.
Before
buying a home, get your finances in order
Line up your
financing, set aside a down payment and study the loan
programs available. By doing your homework, you will
know exactly how much you can pay and what it will cost
you.
Order a Free credit report
Give yourself
time to clean up a credit report that contains mistakes.
Dispute errors. Try to reduce your monthly debt
obligations now by paying down those loan balances.
Find a Lender
Check out
places to get a mortgage and compare rates and fees.
Start with your own financial institution, then
interview a few mortgage brokers and choose a loan
product you completely understand.
Determine a down payment
The more you
put down, the lower your monthly mortgage payment. Here
are 12 places to find a down payment.
Consider FHA Loans
FHA loans
carry competitive interest rates, come with minimum down
payment requirements and allow sellers to pay some or
all of your closing costs.
Get a Preapproval Letter
Showing the
seller you are already preapproved for a loan gives you
an edge during offer negotiation.
Pick a
Real Estate Agent to Help With Buying a Home
With so much
information available online, you might wonder why you
need an agent at all. But all local markets vary from
one another, and a good agent can guide you by giving
you information based on experience and market
knowledge.
Why Hire
an agent?
An agent with
experience can help you to avoid making mistakes such as
choosing the wrong home or offering too much. With so
much information readily available online, clients
sometimes ask me, "Why should we hire a real estate
agent?" They wonder, and rightfully so, if they couldn't
buy or sell a home through the Internet or through
regular marketing and advertising channels without
representation, without a a real estate agent. Some do
OK, many don't. So if you've wondered the same thing,
here are 10 reasons why you might want to consider
hiring a professional real estate agent.
You don't
need to know everything about
buying and selling real estate
if you hire a real estate
professional who does. Henry
Ford once said that when you
hire people who are smarter than
you are, it proves you are
smarter than they are. The trick
is to find the right person. For
the most part, they all cost
about the same. Why not hire a
person with more education and
experience than you? We're all
looking for more precious time
in our lives, and hiring pros
gives us that time.
Find a
Real Estate Agent
Start by
asking your friends and family member for referrals.
Make sure you are comfortable with your agent before
committing to work with that person.
Follow
Protocol for working with agents
Here are 10
tips to prevent you from messing up or saying the wrong
thing to an agent.
First Time
Home Buyer Tips.
The best way
to avoid making a mistake it to learn from the mistakes
others have made. Buying a home in a desirable location
is your best defense. Remember: location, location,
location.
Preview
Homes for Sale
Start your
search online, and don't rely on print because most
homes are not advertised in the newspaper.
Avoid the
top 3 home buyer blunders
Ask your
agent to look at homes before showing them to you, and
tour only those that fit your parameters.
Protect your
earnest money deposit by writing contingencies into your
contract. Here's how to make sure you buy the right
home.
Make an
Offer and Negotiate Like a Pro
Although
buying a home is not like buying a car, for example, you
can still negotiate to get a good price.
Top Three
Negotiation Tips
Price isn't
the only consideration. Sellers often accept
lower-priced offers for other considerations.
Facing
Multiple Offers
If you really
love the home, chances are another buyer will want it as
well. Here's how to win your offer.
Dealing
with counter offers
It's common
for sellers and buyers to negotiate back and forth
through counter offers.
Get a Home
Inspection and Read Disclosures
Never buy a
home without getting a home inspection. Most states have
laws about the types of disclosures you are entitled to
receive.
Go through
this list and make sure your home inspector doesn't miss
anything crucial. Besides disclosing lead-based paint,
which any home built before 1978 can contain, sellers
should notify you of major defects. Always do a final
inspection a few days before closing to make sure the
property is in the same condition as when you agreed to
buy it.
Closing on
Your Home
Transactions
generally close within 30 to 60 days after your offer
has been accepted. Remember to reserve movers or a
moving truck early because many people move at the end
of the month.
Home
Insurance
Shop for
insurance rates carefully. Often, the company that
insures your automobiles may offer you the best policy
rates
Title
Insurance Policy
You might
think you don't need a title policy, but it's the
cheapest form of insurance you can buy, and you pay the
premium only once.
