The Nine Stages of Buying a Home

Posted by Diane on September 19, 2010 under General | Comments are off for this article

There are nine mains steps a potential home owner needs to know before he begins the process of acquiring the home he has always dreamed of.

  1. Consider your income, credit rating, monthly expenses, the amount of money available for a down payment and what the current interest rate is. This will help you decide how much money you can afford to spend on a home. It is important to make sure that a home purchase in the current real estate market is a smart move. Sometimes renting can be more cost effective. Consider a consultation with a housing counselor to get some basic questions answered and to get advice on how to pay off debts and begin to save for your down payment.
  2. You might be entitled to some government benefits, and you should take advantage of whatever rights you might have. Read up on the Real Estate Settlement Procedures Act (RESPA), borrower’s rights, predatory lending and what is meant by “Fair Housing: Equal Opportunity for All.”
  3. You can save a lot of money by shopping around for your loan. Don’t be afraid to compare costs and interest rates, and do not hesitate to negotiate to get the best possible deal.
  4. There are home-buying programs throughout the United States. Find out what your particular state is offering. You can get a lot of information from the FHA and the HUD.
  5. Now you are ready to begin looking for a home. Pick a real estate agent. Make a “wish list” of the features you would like your home to have.
  6. Now that you have found the home that you want, make the owner an offer. Your real estate agent should discuss with you the process, and can help you prepare for the possibility of negotiating the terms of your offer if the owner comes back with a counter-offer.
  7. Be sure to have the home inspected before you actually make the purchase. Any major repairs that the house is in need of should effect the selling price.
  8. Shop around for the best deal on home owners insurance. This is a requirement of lenders before they will approve your loan.
  9. Now the time has finally come to sign the papers transferring ownership to you. Read before you sign, and understand what you are reading. Know what the “settlement” costs will be ahead of time.

Now that you have completed this crash course in home buying, get out there and find your dream home!

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