Buying: The Home Buying Process Step by Step...
ARA Content
(ARA) - Buying a home can be a very intimidating process, especially if
you've never done it before. So the first thing you should do before
you start is to figure out whether owning a home is right for you.
If you're in a region where housing is at a real premium or is very
expensive (such as New York or California), it may be better for you to
continue renting. Take into account that if you do buy a home, there are
extra responsibilities and costs that go along with it -- such as lawn
care, snow removal, home maintenance and repairs, etc.
Ok, then. You've decided that renting is no longer for you and you want to move into your own home. Where do you begin?
Step 1: Check Your Credit Report and Score Ste
Before getting any kind of loan, you should always check your credit.
According to the law, you're allowed to receive one free copy of your
credit report per year. You can do this by visiting
Annualcreditreport.com. Don't forget to check your report for errors.
Step 2: Figure out How Much You Can Afford You can calculate how much you can afford by starting online. Quicken Loans Home Affordability Calculator
can help you calculate an affordable monthly mortgage payment. Don't
forget to factor in money you'll need for a down payment, closing costs,
fees (such as for an attorney, appraisal, inspection, etc.) and the
costs of remodeling or furniture. Remember that you don't always have to
put down 20 percent as your parents once did. There are loans available
with little to no down payment.
Step 3: Find a Real Estate Agent
To find a real estate agent, it's best to shop around. Get
recommendations from your friends and family and check with the Better
Business Bureau. Talk to at
least three or four real estate agents. Ask
lots of questions and make sure they have answers that satisfy you.
Don't go with anyone who makes you feel uncomfortable.
You also
need to find a lender to get home financing. Most lenders offer
pre-qualifications or pre-approvals. Pre-qualifications are only a guess
based on what you tell the lender and are no guarantee. A pre-approval
will give you a better idea of how big a loan you qualify for. The
lender will actually pull your credit and get more information about
you. Quicken Loans offers a Mortgage 1st approval
before you start home shopping. With an actual approval, you're ready
to make an offer, and the sale will go much quicker. Besides, your offer
will look more appealing than other buyers' since your financing is
guaranteed.
Step 4: Look for the Right Home Make a
list of the things you need to have in the house you buy.
Ask yourself
how many bedrooms and bathrooms you'll need, how big you want the
kitchen to be, if there's an adequate number of closets and cabinet
space and if the yard is big enough for your kids and/or pets to play
in. Once you've made a list of your must-have's, don't forget
to think about the kind of neighborhood you want, types of schools in
the area, the length of your commute to and from work and the
convenience of local shopping. Take into account your safety concerns as
well as how good the rate of home appreciation is in the area.
Step 5: Make an Offer on the Home
Now that you've found the home you want, you have to make an offer.
Most sellers price their homes a bit high, expecting that there will be
some haggling involved. A decent place to start is about five percent
below the asking price. You can also get a list from your real estate
agent to find out how much comparable homes have sold for.
Step 6: Get the Right Mortgage for Your Situation
There are many different types of mortgage programs out there, but as a
first-time home buyer, you should be aware of the three basics:
adjustable rate, fixed rate and interest-only.
http://jieranaimaier.homesandland.com/Articles/index.cfm?Editorial=EA_HomeBuyingProcessStepByStep
|