Thinking of Buying a Home?
Thinking about buying a home? First thing you need to do is to create a budget or pull out your budget and make updates. I believe in knowing what I can afford before I make a financial decision. Include any and all expenses in your budget. If you kept track of every dollar you spent last year, your rock! If not, try it this year and your financial life will be changed forever. Your lender will qualify you, providing you with a maximum purchase price. Have them also provide you with a payment amount. Don’t forget taxes and insurance. Your payment needs to comfortably fit in your budget. Discipline and sacrifice definitely has it rewards. I personally like vacations and entertainment. Plan your life a little so you can have one. Set goals for today so you will have a better tomorrow.
Shopping for Lenders can save you a lot of money and hassle. Make sure you ask about loan programs, closing costs, interest rates and find out what your estimated payment including taxes and insurance will be for your desired house price. Remember to make adjustments to your budget. Referrals from people you know are a great way to find a great lender.
The next step is to get pre-qualified with the Lender of your choice. Make sure they send you documentation to support the numbers you have been provided and also a letter stating that you have been pre-qualified and for how much. A pre-approval can be completed also. This will help expedite the sale once you find a home.
CHOOSE A REALTOR
You would be crazy not to find a REALTOR to work with at this if you have not already. The Seller pays the commission, so to have a good Agent representing you will pay off greatly. Notice ,I said a GOOD Agent. Make sure you find one with knowledge, experience and a desire to take care of you. A good agent will save you money and a bad one will cost you money and sometimes the deal. Check out my Blog, “How to Choose a Real Estate Agent”.
SEARCH FOR PROPERTIES
Your Agent will send you listings that match your criteria and a lot that do not. You can search the web all you like but always fall back to your Agent for questions about the homes and to schedule any showings. Drive by all homes before you schedule an appointment with your Agent. Your Agent will bring additional information about each home to the showing. Ask lots of questions and take your time touring the home. Buyer Beware!
OFFER TO PURCHASE
This is where an Agents knowledge and experience really pays off. Rely on your Agent to assist and provide recomendations. But a contract is something you have to abide by so make sure you understand exactly what the contract says before you sign.
Every Agent will recommend a Home Inspection. I have one completed on any home I buy. There are many types of inspections that can be completed on a home. Your Agent will provide you with a list of Inspectors and I recommend being at the Inspection when it is completed. Payment for these services are usually made at the time the service is rendered. You have the right to ask for repairs to be completed prior to closing. Your Agent will guide you through the process. Always complete a final walk through on the home before you close.
You should receive a copy of the Closing Disclosure at least 3 days prior to the closing. This document will list all the financials of the transaction . Review this in detail and call your Lender if you have any questions. Your Agent will review a copy also. This is where the loan documents are signed and the transfer of the property is processed. You will now be a Home Owner and a Real Estate Investor. Take care of your home and it will take care of you!
Check out my Blogs for a detailed article about these subjects. Also I can provide you with a list of Lenders, Home Inspectors, Title Agencies and more!