Home Buying Process First Time Home Owners Guide

First Time Home Owners Guide

Guide to Homeownership

Embark On The Home Buying Process

Prospective homeowners often inquire about the home buying process which ranges from whether you’re ready to become a homeowner to acquiring a mortgage and signing the contract. If you need a home loan make sure you have a steady job history so mortgage lenders are more willing to give you a loan. Your credit history and savings history are also important as lenders want to guarantee that you’re able to actually pack back the loan.

Down Payment

The amount you have for your down payment, monthly mortgage payment, interest rate, and the length of your payment term will help you determine how much you’re able to spend on a home.

Property Type

What type of property are you looking for? Since various types of homes are available, it’s essential that you know what type of home you’re looking for so that you don’t waste your time. Choose from a single-family home, a multiple-family home, a cooperative or “co-op”, a condominium, or a fixer upper.

After you know exactly what type of home you’re looking for you can begin searching for available properties in your target neighborhood. There are many resources that help homebuyers locate a variety of uniquely designed homes for sale. Recommendations by word of mouth in addition to utilizing internet and newspaper resources will help you locate your future home.

Since purchasing a home is probably the biggest investment you will ever make, be sure that all of the information regarding the cost of the property and the neighborhood is correct before you decide to purchase the home.

Mortgages

Mortgages are the most important aspect of the entire home buying process. A mortgage is by far more than simply making a down payment and monthly payments thereafter. Your mortgage’s principal, interest rate, property insurance, and real estate taxes must be considered so you can shop around for the lowest possible mortgage rate. Avoid predatory lenders that try to get homebuyers to invest in a property that they’re not able to afford.

Seek Counsel

Find a real estate attorney that is experienced in real estate transactions. Consult with co-workers, friends, and family members who are homebuyers because they may have a real estate attorney they recommend.

Insurance and Inspection

Shop around for homeowner’s insurance. Look into hazard insurance as it will cover the entire house in the event that it’s damaged or destroyed.

Your engineer’s report and property condition disclosure statement is crucial because it details all the electrical, physical, plumbing, and mechanical problems that exist after a licensed professional engineer has inspected the property.

Most homebuyers look forward to this part of the home buying process. Signing the contract is essentially the most gratifying feeling in the world especially for first time homeowners. Before signing the contract, make sure you have negotiated all of the details with the seller.

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