Category: Buying

Tips and information about buying a home.

The Home Buying Process

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Ideally you will seek the advice of a real estate agent knowledgeable of the market conditions in the neighborhood you are interested in, but in general, these are the following steps in the home buying process:

  1. Work with your real estate agent to evaluate your needs.
  2. Obtain pre-qualification to determine a price range.
  3. View selected homes in your price range.
  4. Write an offer.
  5. Negotiate and counter-offer.
  6. Accept the contract terms upon inspection and removing contingencies.
  7. Your agent can work with your broker to complete the mortgage approval process and underwriting, i.e., appraisals.
  8. A termite inspection is done and a survey is ordered.
  9. A title company will perform a title examination of the property.
  10. A final walk-through of the house is completed prior to settlement.
  11. Close on the property.
  12. Take possession of your new home.

The time it takes to complete the process can vary. Negotiation and counter-offering may take some time, and after a home inspection, there may be more negotiation to resolve any issues that surface.

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10 Steps to Prepare for Homeownership

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  1. Decide how much home you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
  2. Develop a wish list of what you’d like your home to have. Then prioritize the features on your list.
  3. Select three or four neighborhoods you’d like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.
  4. Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney’s fee, and transfer fees average between 2 percent and 7 percent of the home price.
  5. Get your credit in order. Obtain a copy of your credit report.
  6. Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you.
  7. Organize all the documentation a lender will need to preapprove you for a loan.
  8. Do research to determine if you qualify for any special mortgage or downpayment-assistance programs.
  9. Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
  10. Find an experienced real estate agent who can help you through the process.

Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®

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Should you buy a home or rent?

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A lot of potential first-time home-buyers ask me this question:

“Should I buy a home or continue to rent?”

Such a simple question can have many varying answers. Personally, I would choose to buy since acquiring real estate can be a great investment, BUT, what I tell my customers is that they should evaluate their own personal situation, and not just from a financial viewpoint. To start, ask yourself some questions:

  • How long do I plan to work in the area?
  • What kind of life-style do I live now, and how would that change if I were to buy a home?
  • How often and for how long at a time do I travel?
  • Do see my current family size growing in the near future?

Of course there are many other questions you could ask yourself, but take it a step further and picture yourself as a homeowner. You may have a yard that needs to be maintained on a regular basis. There are several major appliances that need servicing on an annual basis, or may need repairing. You’re going to be responsible for paying for all your utilities, including trash removal.

Don’t get me wrong, as a real estate agent I would LOVE to help my customers find a home to buy, but I want to ensure that they know the in’s and out’s of home ownership, and who knows, maybe renting is the best way to go for their current situation.

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