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Buying a Home can seem complicated. The key is to take things step-by-step!
Here are Nine Steps to buying a Home
- Figure out how much you can afford
- Know your rights
- Shop for a loan
- Learn about home buying programs
- Shop for a home
- Make an offer
- Get a home inspection
- Shop for homeowners insurance
- Sign papers
Step 1: Figure out how much you can afford
What you can afford depends on your income, credit rating, current monthly expenses, down payment and the interest rate. Loan Calculators can help, but it is best to visit a lender to find out for sure. Lenders have many different programs that might work for you. Trust in your lender is key. Get a name or two from someone who has worked and was satisfied with their lender.
Step 2: Know your rights.
Check the Fair Housing: Equal Opportunity for All, The RESPA (Real Estate Settlement Procedure Act), Borrower’s rights and Predatory lending.
Step 3: Shop for a loan
Save money by doing your homework. Talk to several lenders, compare costs and interest rates, and negotiate to get a better deal. Consider getting pre-approved for a loan.
Step 4: Learn about home buying programs
For Instance, FHA loan programs offer lower down payments and are a good option for first-time homebuyers.
Step 5: Shop for a home
1.Choose a real estate agent . Referrals are best in this case. If not, then:
?Look for an agent with at least two years of experience. Anyone still in the business after two years has probably learned at least the fundamentals of real estate.
?Look for Commitment: If an agent is not working at least 30 hours a week, he is not committed.
2. Wish list - what features do you want? What Part of town do you want to live in? Do you want an older home or newer home? Do you land? Etc…
3. Home-shopping checklist– take this list with you when comparing homes http://www.hud.gov/buying/checklist.pdf
4. Homes for sale - We have a great program that allows you to browse our MLS and see all the properties that are for Sale. It will notify you when your Notebook properties go Pending, or when the price changes. Contact us if you would like to be signed up. It is entirely Free and has had great success with our clients.
If you choose a home in a neighborhood with a Home Owners Association (HOA), be sure to request a copy of the HOA packet, so you can review before closing.
Step 6: Make an offer
Discuss the process with your real estate agent. If the seller counters your offer, you may need to negotiate until you both agree to the terms of the sale.
For more information, you can look at http://tms.ecol.net/realestate/offer.htm
Step 7: Get a home inspection
Make your offer contingent on a home inspection. An inspection will tell you about the condition of the home, and can help you avoid buying a home that needs major repairs. Here are 10 Questions to ask a Home Inspector. Again, try and get a referral from someone you trust.
?. What does your inspection cover? The inspector should ensure that their inspection and inspection report will meet all applicable requirements in your state if applicable and will comply with a well-recognized standard of practice and code of ethics. You should be able to request and see a copy of these items ahead of time and ask any questions you may have. If there are any areas you want to make sure are inspected, be sure to identify them upfront.
?How long have you been practicing in the home inspection profession and how many inspections have you completed? The inspector should be able to provide his or her history in the profession and perhaps even a few names as referrals. Newer inspectors can be very qualified, and many work with a partner or have access to more experienced inspectors to assist them in the inspection.
?Are you specifically experienced in residential inspection? Related experience in construction or engineering is helpful, but is no substitute for training and experience in the unique discipline of home inspection. If the inspection is for a commercial property, then this should be asked about as well.
?Do you offer to do repairs or improvements based on the inspection? Some inspector associations and state regulations allow the inspector to perform repair work on problems uncovered in the inspection. Other associations and regulations strictly forbid this as a conflict of interest.
?How long will the inspection take? The average on-site inspection time for a single inspector is two to three hours for a typical single-family house; anything significantly less may not be enough time to perform a thorough inspection. Additional inspectors may be brought in for very large properties and buildings.
?How much will it cost? Costs vary dramatically, depending on the region, size and age of the house, scope of services and other factors. A typical range might be $300-$500, but consider the value of the home inspection in terms of the investment being made. Cost does not necessarily reflect quality. HUD Does not regulate home inspection fees.
?What type of inspection report do you provide and how long will it take to receive the report? Ask to see samples and determine whether or not you can understand the inspector's reporting style and if the time parameters fulfill your needs. Most inspectors provide their full report within 24 hours of the inspection.
?Will I be able to attend the inspection? This is a valuable educational opportunity, and an inspector's refusal to allow this should raise a red flag. Never pass up this opportunity to see your prospective home through the eyes of an expert.
?Do you maintain membership in a professional home inspector association? There are many state and national associations for home inspectors. Request to see their membership ID, and perform whatever due diligence you deem appropriate.
?Do you participate in continuing education programs to keep your expertise up to date? One can never know it all, and the inspector's commitment to continuing education is a good measure of his or her professionalism and service to the consumer. This is especially important in cases where the home is much older or includes unique elements requiring additional or updated training.
Step8: Shop for homeowners insurance
Lenders require that you have homeowners insurance. Be sure to shop around.
Step 9: Sign papers
You're finally ready to go to "settlement" or "closing." Be sure to read everything before you sign! | 