A "Homebuyer's 101 Guide" to help your homeownership dreams come true
By Deena Weinberg
Buying a home is often the single-most important, largest investment in people's lives. Achieving the goal of homeownership requires research, dedication, patience and knowledge. Therefore, knowing how to buy your dream house is the first main ingredient in the recipe for homeownership success. Begin by familiarizing yourself with the world of real estate by reading books and articles that explain how the real estate market works. If a government loan interests you, the Department of Housing and Urban Development Web site (HUD.gov) is an excellent source of information. Since you are faced with myriads of homebuyer choices -- i.e., the type of house you want to buy, location, how much to spend, to hire/not hire a real estate agent, types of mortgage plans/interest rates, and much, much more -- here is a simplified "Homebuyer's 101 Guide" to help you begin your homebuyer's journey.
Preliminary steps to buying a home
Your homebuyer's task begins even before you hit the pavement to look for your dream house. Follow these preliminary steps:
Do your homework and research everything you can about buying a home in general, and about market trends in your real estate area specifically.
Know what your financial/credit situation is. This will be paramount in determining your buying power and ability to secure a loan.
Choose a neighborhood to help pinpoint your research and narrow your home search.
Finding a real estate agent
Given the complexities of buying a home, a real estate agent is a highly valuable resource of information and contacts who can help you navigate through the process of homeownership, put forth an offer, push paper work, and much more. Since there are many types of real estate agents, shop around for a real estate agent who is right for you and whom you trust.
Choosing a mortgage
Since you will probably be paying off your mortgage loan for quite some time (i.e., until you pay off the mortgage, refinance, or sell the house), hit the books and learn about:
How mortgages work in general
The types of mortgages available
Pros and cons (short term and long term) of your mortgage options
Mortgage terminology How interest rates work What happens if you default on a loan
Mortgage lending is a competitive business, so shop for the best deal before you sign on any dotted lines.
Get pre-approved for a loan
To placate homeowners who may not consider your offer without assurance that financing is in place and to determine your home shopping budget, it's a good idea to get pre-approval from a lender for a loan. If you are short on cash, consider a Federal Housing Administration (FHA) loan which requires a smaller down payment than conventional loans.
House hunting and making an offer
Now that your finances are in order, enjoy looking for your dream house. Online you'll find myriads of Web sites offering home buying tips, advice on how to house hunt wisely and more. Once you find the right home, determine a reasonable offer with your real estate agent and be prepared for a counteroffer from the seller.
Order a home inspection
Home inspections are critical to a successful home-buying conclusion. If you can't do a home inspection prior to your purchase offer, make sure your contract includes a contingency clause allowing you to walk away if the home inspection reveals problems.
Sealing the deal
During escrow, the period between offer acceptance and final settlement, you'll have a lot of paperwork keeping you busy. Once the deal is sealed and final home-buying activities are concluded, you can say hello to your new "Home Sweet Home!" Source: Realtor.com/ By Deena Weinberg
Author:Christy Peterson Phone: 774-287-5322 Dated: November 10th 2014 Views: 708 About Christy: ...
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