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Buyer Information
Buying a new home is a very confusing and emotional experience.
Not only should it be the house that you want and need and which should fit your personal taste but most likely it also will be the largest single investment in your lifetime and possibly your greatest family asset.
The following tools will guide you through the home buying process. They can assist you to avoid making costly mistakes, help you make a knowledgeable real estate investment, and to own a home as part of the American dream.
Steps to Home Ownership
- Check your credit report
Equifax
Experian
Transunion.com
You should know what your credit reports say about your financial situation, because these reports are essential when you apply for a mortgage.
- Get your finances in order
Correct errors in the credit reports and close some credit cards or loans ahead of time.
- Check the different kinds of mortgages
Many different kinds of lenders and mortgages are available to you. Make sure you understand the pros and cons of each and watch out for loan fraud.More calculators from Bank Of America for
Mortgages
- Find out how much you can invest and how much mortgage you can afford.
Most lenders won't give you a mortgage with monthly mortgage payments above 29% of your monthly gross income. Our mortgage calculator will help you estimate monthly payments.
Calculator
- Get pre-approved by a mortgage company
Being pre-approved could not only help you in getting your offer to purchase accepted, but is sometimes also necessary to be able to look at houses.
Most home owners won't let you in their house when they don't know if you will be able to purchase their home and therefore open their home only to pre-approved buyers.
- Create a wish-list and determine your wants and needs
Focus on the features you want in a home ( 2 bedroom , 2 bath) as well as the location and if applicable a specific school area.
- Find a real estate agent / broker
Find out which brokers specialize in the kind of home or the area you want by searching the internet, looking in the Yellow Pages, or the local newspaper's classified real estate ads. Or drive through neighborhoods and note the names of brokers on "for sale" signs. Ask the prospective brokers about the areas and types of homes in which you're interested in and check if they are knowledgeable, but it is most important whether or not their personal style is a good fit with your own. Understand the agent's duties and loyalties before calling.
- Searching for a home
Your real estate agent will find multiple listings for you based on your wish-list. But you can also search on your own and then ask your agent to show you a house. Also, you can drive around, search the internet, pick up real estate brochures at the grocery store, or look through the real estate sections in the newspaper. Don't forget the Open houses on Sunday's.
- Resale value
Consider what the home value will be in the future. Think about resale when you buy.
- Offer
When you have found the perfect home that meets most of your needs and dreams it is time to make an offer to purchase.
Good offers are based on a realistic purchase price.
-Base your offering price on comparable houses that have sold in the last six months.
- Have realistic lending terms in place. Your mortgage's interest rate and lending terms should be based on current lending conditions.
- Use property inspection clauses to be able to reopen negotiations regarding necessary repairs.
- Counter offer
If the seller accepts the price and terms in your offer they will sign it and their agent will give you a signed copy, called ratified offer. After that the sale is pending. But most likely the sellers will not accept your offer and will use a counter offer to adjust the price, conditions, and terms of the offer.
- Home inspections
You should always get a comprehensive home inspection before buying and investing in a property. At the time of the inspection it is a wise thing to accompany the home inspector so that you can learn firsthand as much as possible about the home you are about to purchase. Home inspectors play the role of an objective third party and evaluate a property. Make sure you get an independent authorized inspector and a written report. You will have to pay for this inspection yourself, but it could keep you from buying a house that will cost you far more in repairs. If the results of the inspection are to your satisfaction, your offer can proceed. If you aren't satisfied, you could think about negotiating and asking the seller to pay for certain repairs or for a lower price.
- Appraisals
The lender will require an appraisal of the house you want to buy, to make sure it's worth the amount of money you will be borrowing.
- Home warranty
Home warranties are very useful, whether you are buying or selling a home. A home warranty policy will pay for the cost of fixing or replacing many systems. Home warranties give peace of mind in the period after a purchase.
- Home owners insurance
Lenders require that you have a homeowners insurance, to protect your and the lenders interest.
- Settlement / closing
At the time of the closing the ownership of the property is transferred to the buyer. Before the closing day you should check the progress of appraisals, inspections etc, on a daily basis so that you now immediately whether there is a problem you must deal with.
Free reports for Buyer's
Links
-> Get free reports for Buyer's
->CNN Money / Top things to know / Buying a home
-> 10 Steps to Home Ownership / Realtor.com
->ABC's of Real Estate
-> About Homebuying tips
-> HUD / U.S. Department of Housing and Urban development Homebuying tips
Copyright © 2005-2008 Flavia Westerwelle / All Rights Reserved
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