Understanding the Home Buying Process
http://www.realestatediaries.net/articles/7148/1/Understanding-the-Home-Buying-Process/Page1.html
Gary Hall
Find By Gary Hall
Published on 01/26/2010
Most people jump into the home buying process and don't know what they're getting themselves into. It isn't all about just finding a home you like and going to the bank to get money for it.
Most people jump into the home buying process and don't know what they're getting themselves into. It isn't all about just finding a home you like and going to the bank to get money for it. There are a lot of aspects to the home buying process that you need to learn about. Buying a home is a big financial commitment-perhaps the biggest commitment you will ever make financially. You need to go through the steps with an experienced professional before making the big leap to becoming a homeowner.
The first thing you need to do is find an experienced realtor. He or she will know the area well and will have listings of the homes based on price and other amenities. You can look on the internet yourself and get access to these kinds of homes and properties. Look through the sites carefully and know the location you are looking for, the number of bedrooms and baths, and the price range you are looking for. Pick several houses to visit and go with the realtor to see them. Pay attention to whatever other amenities the home has and if you like the features you see.
Once you have selected a home you are interested in, the home buying process continues. You need to have the home inspected to make sure you don't have a home with electrical or water problems. Make sure the foundation is secure and that the property lines are drawn correctly. Then you can put a down payment on the home to secure the home.
The next step is going to a lender. Sometimes the realtor can do this for you or can help you through the process. You need to have your financial situation evaluated to make sure you are capable of making mortgage payments. You have also to think of property taxes and other taxes on the home and, if it is part of a condominium complex, you need to know what the fees are that you need to pay the condominium complex in order to live there. Know your credit score, which will determine how much interest you'll have to pay on your home. Understand what your credit score means and make sure it is an accurate representation of your credit history.
In the home buying process, you need to understand how mortgages work. Some are straight loans that ask you to pay a certain amount that is the same no matter what the interest rate is and you pay out the loan for about 30 years. In addition, you may find yourself with a balloon loan that asks you to pay a large "balloon" payment after a certain period of time. Understand the terms of the mortgage you are applying for and agree to them before you sign on the bottom line.
After you have the loan, you sign the papers in order to own the home. You agree on a closing date which is the date the money is transferred over and the time when the house is transferred from the previous owner to you. Then you prepare to move and get ready for the closing date. You usually have a few weeks to a month before the closing date occurs. The home buying process is almost over.
The first thing you need to do is find an experienced realtor. He or she will know the area well and will have listings of the homes based on price and other amenities. You can look on the internet yourself and get access to these kinds of homes and properties. Look through the sites carefully and know the location you are looking for, the number of bedrooms and baths, and the price range you are looking for. Pick several houses to visit and go with the realtor to see them. Pay attention to whatever other amenities the home has and if you like the features you see.
Once you have selected a home you are interested in, the home buying process continues. You need to have the home inspected to make sure you don't have a home with electrical or water problems. Make sure the foundation is secure and that the property lines are drawn correctly. Then you can put a down payment on the home to secure the home.
The next step is going to a lender. Sometimes the realtor can do this for you or can help you through the process. You need to have your financial situation evaluated to make sure you are capable of making mortgage payments. You have also to think of property taxes and other taxes on the home and, if it is part of a condominium complex, you need to know what the fees are that you need to pay the condominium complex in order to live there. Know your credit score, which will determine how much interest you'll have to pay on your home. Understand what your credit score means and make sure it is an accurate representation of your credit history.
In the home buying process, you need to understand how mortgages work. Some are straight loans that ask you to pay a certain amount that is the same no matter what the interest rate is and you pay out the loan for about 30 years. In addition, you may find yourself with a balloon loan that asks you to pay a large "balloon" payment after a certain period of time. Understand the terms of the mortgage you are applying for and agree to them before you sign on the bottom line.
After you have the loan, you sign the papers in order to own the home. You agree on a closing date which is the date the money is transferred over and the time when the house is transferred from the previous owner to you. Then you prepare to move and get ready for the closing date. You usually have a few weeks to a month before the closing date occurs. The home buying process is almost over.