Real Estate Information

11 Steps Away From Buying a Home


There is no doubt that the market for houses has been on fire recently. More and more people are taking advantage of low interest rates and easy mortgage loan terms to go from being renters to being home owners. With so many people entering the market, it is inevitable that questions will arise.

There are many things to consider when buying your first home. Some of the most important steps to buy a house are:

Step 1: Learning the home buying process

Start by learning as much as you can about how the home buying and mortgage application process works. Read as much as you can about buying a home. Check out the many books in your local library that offer hints to first time home buyers. Read financial web sites on the internet for tips for first time home buyers. You may even want to sign up for a class aimed at first time homeowners. Many towns and cities offer these kinds of classes, and they can be a great source of information for the buyer looking for his or her first home.

Step 2: Find out the pre-qualified price range

It is important to find out how much you can borrow before you start looking for a home. Talk with several mortgage lenders in your area and get pre-qualified for a particular price range. The mortgage lender will be able to help you determine how much you can borrow based on your annual income. In general, mortgage lenders recommend that all home related expenses, including the mortgage payment, insurance premiums and real estate taxes, do not exceed 28% of your monthly income.

Step 3: Get Pre-approved for mortgage loan

The next step is to get pre-approved for mortgage financing. This is similar to getting pre-qualified for a price range, but it is a more formal process. You will need to supply proof of your income for the pre-approval process to move forward. Most lenders will want to see income tax returns from the past two years as proof of the income you are claiming.

Step 4: House hunting

After you have been pre-approved for your mortgage loan, it is time to actually start house hunting with a realtor (find out why you need to find a realtor before buying a house?). Your mortgage lender will give you a letter stating that you have been pre-approved for a mortgage and the amount you are authorized to borrow. You will need to present this letter to the real estate agent when you get started. It is important to get pre-approved for a mortgage loan before beginning your home search. The real estate agent and real estate company will be much more willing to work with you if they know you can afford the home you are looking at. In addition, sellers will take your offer much more seriously if it is accompanied by a pre-approval letter from your mortgage lender.

Step 5: Make an offer

Once you have found a home that meets your needs, it is time to make an offer on the property. You will already know the most you can spend from the pre-approval process, and you probably will have your own ideas on what the property is actually worth. In addition, your real estate agent can guide you through the negotiation process and offer procedures. A copy of your pre-approval letter will be presented as part of the written offer. This will ensure the seller that your offer is legitimate.

Step 6: Negotiation process

If the seller accepts your first offer, congratulations. Your negotiations are over and you're ready to start preparing for your move. More likely, however, is that the seller will come back with a counter-offer. This negotiation process can go on for a short or long amount of time, depending on factors like the motivation of the seller, the local real estate market, and a host of other factors. The real estate agent will be a good guide through the negotiation process. After all, he or she will have been through this process many times before.

Step 7: Provide copy of Purchase and Sale Agreement to mortgage broker

After the negotiation process has been completed, you will need to present your mortgage broker with a copy of the Purchase and Sale Agreement for the home.

Step 8: Work to close the mortgage loan

After presenting the Purchase and Sales Agreement, you will need to work with the mortgage broker to ensure you meet all the conditions required for the closing of the mortgage loan.

Step 9: ome inspection prior closing

Prior to closing, you will want to make sure to have a thorough home inspection performed by a qualified and certified home inspector. A home inspection will protect you from flaws in the construction and condition of the home that are not obvious to the naked eye. Home inspections can uncover things like foundation cracks, termite infestation and other home quality issues.

Step 10: Hand over down payment

After the home inspection has been performed and the report has come back clean (or all the items uncovered have been repaired), it is time for the buyer to actually hand over the money for the down payment and sign the loan documents.

Step 11: Collect the house key

After the closing of the loan, the fun part of home buying begins. Your real estate agent will hand over the keys to your new home and you can actually move in and enjoy your beautiful new home. Welcome to moving day!

Andrew is the web owner of Home Buying Tips: How to buy a house, a website that provides complete guide on home buying, selling house, home mortgage, foreclosure, real estate investment and more. You can visit his website at:http://www.buy-and-sell-house-fast.com/


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


Forbes

Productivity And Perspective: How Top Real Estate Agents Manage Their Time
Forbes
What's the number one way to crush it in real estate? Build a scalable business. Utilize a system that helps you manage a large number of contacts without dropping the ball — that's your CRM. Optimize platforms that allow you to generate leads without ...



Bloomberg

Bain to Manage Harvard Endowment's $3.4 Billion of Real Estate ...
Bloomberg
Bain Capital agreed to manage Harvard University's $3.4 billion in direct real estate investments and hire 22 people who oversaw the portfolio at the Ivy League school endowment.
Harvard Endowment's Real Estate Team Moves to Bain CapitalInstitutional Investor
Harvard to Outsource Real Estate Investment to Bain CapitalU.S. News & World Report
Bain Capital Establishes Real Estate Business | Business WireBusiness Wire (press release)

all 6 news articles »


Seeking Alpha

Real Estate - 5 Fab Signals For Housing
Seeking Alpha
Builder confidence, housing starts, residential construction spending, new home sales, and hiring in the construction industry all bode well. This data reflects healthy and improving economic growth and employment, which should continue in 2018. Five ...



Nextdoor partners with Tribus on real estate listing and lead integration
Inman.com
Real estate tech provider Tribus is partnering with neighborhood-based social networking site Nextdoor to allow for direct listing and lead integration between the two platforms, according to an announcement tweeted out by Tribus on Thursday. You can ...



Real-estate transactions: Dec. 15, 2017
Peoria Journal Star
1617 W. Country Oaks Court, Dunlap, Michael J. and Natalie R. Jensen and Morreale Real Estate Services Inc. to Celis J. and Analezi Barrera, $140,000. 1208 E. Brookview Court, Peoria, Amogh A. and Archana Deo to Joshua K. Hofer, $142,000. 2401 W ...



Russian conglomerate Sistema's real estate unit shelves bond sale
Reuters
Lider Invest, a real estate unitof Russian business conglomerate Sistema, saidon Friday it had postponed indefinitely a planned bond sale,citing an unfavourable environment.

and more »


Sierra Star

Two receive top honors in Mountain Area real estate community
Sierra Star
Each year the Yosemite Gateway branch of the Fresno Association of Realtors honor a realtor and an affiliate for their outstanding service to the community and real estate industry in the Mountain Area. Yosemite Gateway Association of Realtors annually ...



60629 ZIP code real estate and housing profile - Bankrate.com
Bankrate.com
Here's what you need to know about home prices, mortgage rates and other factors when considering buying a home in the 60629 ZIP code in Chicago, Illinois.

and more »


Two arrested for real estate fraud
The Hindu
The Ernakulam North Police on Friday arrested two persons on the charge of duping a person from Vaduthala of ₹10 lakh. Sajukumar, 49, and Robin George, 43, residents of Elamakkara, were arrested by the police for allegedly promising to sell a house and ...

and more »


Sioux City Journal

Mr. Goodfellow: Salem Real Estate
Sioux City Journal
Salem Real Estate staff are shown Nov. 29 at the Sioux City commercial real estate firm's offices: Seated, Karla Hertz and Dick Salem and standing, from left, Judy Hegstrom, Mary Wilkens and Joan Roeder. Salem Real Estate has donated to the Journal's ...


Google News

home | site map | Blog |
Portland Oregon Real Estate Listings | real estate investing | real estate in greece | for sale by owner in atlanta | House for sale: Louisville KY
Exchange Links Here | Links page |
© 2006