Buying a home can be as easy as 1-2-3
Buying a home can be a simple process. Or, it can be frustrating. It is best to have a guide who knows the procedure. Buying real estate is a process requiring a number of steps which need to be taken in order to provide the information necessary for those involved in the transaction.
Get a REALTOR® to help you. They can make a big difference. Look at it this way; if you were a candidate for brain surgery you would demand the very best doctor you could find to do the job. Real estate may not be in this life threatening category, but it can cost you much more than necessary if you go about the process in the wrong way. Go with the best. Find a REALTOR® you like and have confidence in.
One of the first steps is to determine how much of a home you can afford to purchase. This depends simply on cash for a down payment and the income to pay off the mortgage. If you have any existing credit problems, it’s best to take care of them right away. Get your financing set up early on.
There are different types of loans to consider. Have your loan officer explain the various options you have that will be to your best advantage. There can be big differences in the type of loans you will be looking at.
Be sure to see if you qualify for special mortgage or down payment assistance programs. There are a number of them designed to fill homebuyers’ needs.
Once you know the limits of your home possibilities, decide where you would most enjoy living, either in town or out of town. It’s not a bad idea to look at numerous locations. Go to open houses in these areas and you will end up with a true sense of home costs and values in the various neighborhoods. Spending a number of weekends at open houses will provide you with some comfort in pricing. You will recognize a very good home buy when you see one.
When you are deciding upon the area in which you wish to live, be sure to check the schools, recreational opportunities, fire and police protection, and general safety, etc. You will know you are there when you feel “comfortable” about the home for sale.
Once you have determined how much you can afford by visiting your mortgage company, and you have found the home you want, your work is not done. You will need to have enough money to cover your down payment and closing costs which cover taxes, attorney’s fee, and transfer fees. These costs average between two and seven percent of the price of the home. Your loan officer should be able to provide reasonable estimates of these charges prior to closing.
Home buying can be easy when the purchasing steps are made based on knowledge, experience and forethought. Knowing what has to be done throughout the process can be a time saver — and more than likely — a money-saver as well.