Buying a home is a big investment. It should be done
with care, guidance and consultation.
Here are some tips to help you buy the right home at the right price!
The Home Buying Process
1. Take some time and decide to buy!
There are many reason to buy a house, wealth building as one of the top reasons to buy. Let the home appreciation and equity reduction build your wealth. Home-ownership is one the best accidental investment most people ever make. When it is done right, home ownership becomes an intentional investment that lays the foundation for a life of financial security and personal choice. There are solid financial reasons to support your decision to buy a home, equity buildup, value appreciation, and tax benefits stand out. Buying house also makes you stable, generally is better neighborhood and you feel comfortable about owning and living in a house. It also makes you frugal!
Here are some reasons you may want to buy a house or consider buying a house.
- If you are paying rent, you very likely can afford to buy. Sometimes it might be even cheaper if you take tax implications into consideration.
- There is never a wrong time to buy the right home. Buy you feel ready and willing to buy.
- You can buy homes with minimal amount of down payments. FHA Government loans let’s you buy with as little as 3.5% down payment.
- You can buy a house with a reasonable credit and FICA scores.A less-than-perfect credit score won’t necessarily stop you from buying a home
- The best way to get closer to buying your dream home is to buy your first home now, or at least start the process.
- Buying a home doesn’t have to be complicated – there are many professionals who will help you along the way. Talk to a Realtor to at least get started. Call or email me and I will be glad to chat with you!
2. Hire an Agent
Today’s real estate transaction involves quite a few individuals and affiliates like home inspectors, insurance assessors, lenders and underwriters, other inspectors, appraisers, escrow officers, buyer’s agents, seller’s agents, bankers, title insurance representatives and a number of other individuals whose actions and decisions have to be orchestrated in order to perform in harmony and get a home sale closed in time. It is the responsibility of your real estate agent to expertly coordinate all the professionals involved in your home purchase and to act as the advocate for you and your interests throughout.
Many real estate transactions include an extensive negotiating process, and as your buyer’s Agency it will be Our job to represent you here and get the best deal possible. We’ll also attend property inspections, make sure any and all agreed-on repair work is carried out, and handle paperwork related to the sale. We can also help set up the financing for your investment, and work directly with a broker to provide you with a seamless service package.
Working with a dedicatedaand experienced agent on your next home purchase will save you time and add professional assurance to every step of the process. With the guarantee of a great investment the buying now decision could also make you e wealthier when it’s time to sell.
Several roles of a Buyers Real Estate Agent
- Coordinates the work of other needed professionals.
- Negotiates on your behalf for your benefits.
- Checks and double-checks paperwork and deadlines.
- Solves any problems that may arise.
- Have sellers sign all the disclosures required by law.
- Educate you about your local market.
- Analyze your home buyings needs, wants and terms.
- Guides you to home that fits your criteria and qualifications.
3. Obtain your Financing
Owning a home is quite thrilling and fullfiling. More than likely you will end up get a loan to purchase a homne. Many first-time buyers start out confused about the process or nervous about making such a large financial commitment. The best thing to do is to talk to a lender who will get you qualified and guide to next steps.
Six steps to Financing a Home
- Choose a loan officer (or mortgage specialist) we can recommend some to you, just ask!
- Make a loan application and get preapproved.
- Determine what you want to pay and select a loan option.
- Submit to the lender an accepted purchase offer contract.
- Get an appraisal and title commitment.
- Obtain funding at closing.
4. Find your home
One may think that shopping for homes starts with jumping in the car and driving all over town or going online to various sites and searching for homes. It’s true that hopping in the car to go look is probably the most exciting part of the home-buying process. Driving around is fun for only so long – if weeks go by without finding what you’re looking for, the fun can fade pretty fast. That’s why we say that looking for your home begins with carefully assessing your values, wants, and needs, both for the short and long terms.
Questions to ask yourself as a buyer
- What do I want my home to be close to? schools, work, church, hospitals etc
- How much space do I need and why?
- Which is more crucial: location or the suqare footage.
- Would I be interested in a fixer-upper?
- How important is home value appreciation?
- Is neighborhood stability a priority?
- Would I be interested in a town house or a condo?
- Would I be interested in new home construction?
- What features and amenities do I wasnt? Which do I really need?
- What features or amenities can I do without?
5. Make an offer
When searching for your dream home, you were just that – a dreamer. Now that you’re ready to write an offer, you need to be a businessperson. You have to have your emotions in check. and you need to approach this process with a cool head and a realistic perspective on your local market. The three basic components of an offer are price, terms, and conditions.
Price – the right price to offer must fairly reflect the true market value o fthe home you want to buy. Your agent’s market research will guide this decision.
Terms – the other financial and timing factors that will be included in the offer.
Terms fall under six basic categories in a real estate offer:
- Schedule – a schedule of events that has to happen before closing.
- Conveyances – the items that stay with the house when the sellers leave.
- Commission – the real estate commission or fee, for both the agent who works with the seller and the agents who works with the buyer.
- Closing costs – it’s standard for buyers to pay their closing costs, but if you want to roll the costs into the loan, you need to write that into the contract.
- Home warranty – this covers repairs or replacement of appliances and major systems. You may ask the seller to pay for this.
- Earnest money – this protects the sellers from the possibility of your unexpectedly pulling of the deal and makes a statement about the seriousness of your offer.
The purchase of your home may be subject to conditions or contingecies like:
- Buy if your relocation is apporved.
- Buy is your house sells first
- Buy if they you can stay etc etc.. whatever the conditions are, always let your Agent you of them upfront so you can make an appropriate offer accordingly.
6. Perform due diligence.
Unlike most major purchases, once you buy a home, you can’t return it if something breaks or doesn’t quite work like it’s supposed to. That’s why home owner’s insurance and property inspections are so important.
A home owner’s insurance policy protects you in two ways:
- Against loss or damage to the property itself
- liability in case someone sustains an injury while on your property
The property inspection show expose the secret issues a home might hide so you know exactly what you’re getting into before you sign your closing papers.
- Your major concern is structural damage.
- Don’t sweat the small stuff. Things that are easily fixed can be overlooked.
- If you have a big problem show up in your inspection report, you should bring in a specialist. If the worst-case scenario turns out to be true, you might want to walk away from the purchase.
The final stage of the home buying process is the lender’s confirmation of the home’s value and legal statue, and your continued credit-worthiness. This entails a survey, appraisal, title search, and a final check of your credit and finance. Your agent will keep you posted on how each if progressing, but your work is pretty much done.
You just have a few preclosing responsibilities:
- Stay in control of your finances.
- Return all phone calls and paperwork promptly.
- Communicate with your agent at least once a week.
- Several days before closing, confirm with your agent that all your documentation is in place and in order.
- Obtain certified funds for closing.
- Conduct a final walk-through.
On closing day, with the guidance of a settlement agent and your agent, you’ll sign documents that do the following:
- Finalize your mortgage.
- Pay the seller.
- Pay your closing costs.
- Transfer the title from the seller to you.
- Make arrangements to legally record the transaction as a public record.
As long as you have clear expectations and follow directions, closing should be a momentous conclusion to your home-searching process and commencement of your home-owning experience.
8. Protect your investment
Throughout the course of your home-buying experience, you’ve probably spent a lot of time with your real estate agent and you’ve gotten to know each other fairly well. There’s no reason to throw all that trust and rapport out the window just because the deal has closed. In fact, your agent wants you to keep in touch.
- Handle your first tax return as a home owner.
- Find contractors to help with home maintenance or remodeling.
- Help your friends find homes.
- Keep track of your home’s current market value.
Attention to you home’s maintenance needs is essential to protecting the long-term value of your investment.
Home maintenance falls into two categories:
- Keeping it clean: Perform routine maintenance on your home’s systems, depending on their age and style.
- Keeping an eye on it: Watch for signs of leaks, damage, and wear. Fixing small problems early can save you big money later.
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