When Buying
a Home
Your
first step in the process of buying a home is to determine how
much you can afford to borrow. A basic rule of thumb is that a
lender will want your monthly mortgage payment to be no more than
29% of your monthly gross income.
Mortgages
and Home Buying Programs
There
are many different kinds of mortgage programs available. It is
best to do some research about the pros and cons of each program.
A real estate broker can help you understand the steps you will
need to take, and can refer you to
a reputable mortgage broker or service. There are also special
home buying programs available from various organizations and
many local governments that offer special home buying programs
to help first-time home buyers and those in a lower income bracket.
Get informed - you may be surprised to discover what you are eligible
for!
Determine
Your Search Criteria
Begin
your home search by focusing on the location where you want to
buy, and the amenities you want in a home. Determine how much
square footage you want, how many bedrooms and baths you need,
etc. Knowing what you're looking for will not only help you focus
your search but will also help your real estate broker understand
your needs so that he/she can best assist you in the process.
Shopping
for a Home
There
are several avenues to take once you begin your home search. Your
real estate broker can supply you with listings, based on your
search criteria. You may also look for property on the Internet,
and then ask your broker to set up an appointment to show you
the house. Reading the real estate section of your local newspaper,
or driving around neighborhoods that interest you is also a viable
strategy. It is important to see as many open houses as possible,
so that you can develop an understanding of the market, and get
a solid idea of what is available in your price range.
The Home
Inspection
Once
you have made an offer on a home, you will need to schedule a
home inspection, conducted by an independent authorized inspector.
It is extremely import to hire a reputable inspector so that you
know exactly what you are
buying. Do not hesitate to ask friends, family, and co-workers
for advice. If you are satisfied with the results of the inspection,
then you can proceed to the Purchase and Sales agreement. If the
inspector finds problems with the property, you may want to negotiate
with the seller to lower the price, or to pay for certain repairs.
Appraisal
Your
lender will require you to get an appraisal of the house you want
to buy, to make sure it is worth the money that you are borrowing.
You may select your own appraiser, or you may ask your real estate
broker to help you with this task.
Homeowner's
Insurance
Lenders
require that you have homeowners insurance, to protect both your
interests and theirs. Like everything else, be sure to shop around
for insurance that fits your needs.
Settlement
or Closing
Finally,
you are ready for the closing. Be sure to read everything before
you sign! You should have both your real estate broker and an
attorney present at the closing to ensure that all is in order.
menities you
want in a home. Determine how much square footage you want, how
many bedrooms and baths you need, etc. Knowing what you're looking
for will not only help you focus your search but will also help
your real estate broker understand your needs so that he/she can
best assist you in the process.
