Home Buying Guide – Step by Step Guide and how to find a dream home

Home Buying Guide – Step by Step Guide and how to find a dream home


Posted on January 28th, 2010 in Mortgage Bankers Association Articles by admin

Buying home 101 – Home Buying Guide Step-by-step for first time buyers. First-time buyers have tons of questions, you can understand that nervous to invest the time to save lives in the house. Okay, you have a good idea to buy a home for yourself or your family. How did you make this decision. Are you planning a family, you need to invest in real estate, if you buy the pressure from your peers. For all of them have bought houses when drunkYou will be asked repeated questions Potluck shares, "When are you home for sale. The reason can be many, might be the right time for determining the real estate market, cash is available for filing taxes on high incomes, the state family, or not much difference between the rental and owner (depending on city to city).

Whatever the reason to buy a house for first time buyers, is an important decision, and are confused and are looking for guidance and detailed information. Complete data andStep by step details to help first home buyers. The information will be first home buyers to help the home buying process understandable.

Check your credit score and financial situation

The first thing before starting the home buying process is to check your credit score. Your credit score is the main factor of a loan for the home. To request a credit for home loans, first your credit history and credit score check. Now with the new regulations issuedevery consumer has the right to receive credit reports from all three credit rating companies (TransUnion, Equifax, Experian).

Under federal law, guidelines, each consumer can get a free credit report from major credit rating companies techniques after every 12 months. Next link to your credit report free. (http://www.annualcreditreport.com)

(Note: Beware of fake websites provide free credit report, which aims to keep your personal data. CheckURL above, when you type or cut / paste, it should be the same place. Po 'time with a couple of mistakes, which may go to different site with the same look and functionality. Again, beware of people looking for personal information. Your personal information is your identity on the Internet.)

Your credit score will provide information to creditors about your credit future. It tells them how good you are to keep your records, including the payment of accounts on time, without values, the way you manage yourCredit cards and other debts. Does it have any negative comments against your name, etc.

If you find a suspicious activity report against your name on your credit report immediately in writing to all three major rating agencies to credit for businesses. This relationship can also be used for any incorrect address or the name of the credit report. Bottom line of this report may help to know where he stands on the threshold and as a good opportunity to take a loan for a reasonable rate of interest. The higher score means more creditoffers attractive loan from banks.

Once your credit score was checked and was satisfied with the needs of banks, the next thing that your financial situation to monitor. The first thing is your current assets over current liabilities. You are able to retain a large proportion of salary set aside for future mortgage payments, without disturbing the existing commitments.

Do simple calculations, if your salary is $ 5000 and the family's current expenses, including payments of debtabout $ 2000 (including rent $ 1000). This means you have $ 3000 left in your bank. If you are looking for a house for the monthly payment will go to $ 2000 and after deduction of the remaining left with $ 1000 Next deduct your property tax of $ 1000 Take another $ $ 400 (prices vary from state to state). We are left with $ 600. You must still factor in home security, landscape, Miscellaneous. costs associated with owning a home.

In total, you have $ 1600still in control of spending. This is not the final exercise, but it will be your guide to make your list of expenses and cast and see if your monthly house payment to pay. It 'a good exercise, you will be surprised how many hidden costs will surface when you go through this exercise.

Typically, the debt must be less than 50 percent of its income. It is also advisable to take 4-6 months of payments for a home page before you go home option. Reserve funds willRain useful in situations such as loss of jobs, health issues, etc.

Time to take Real Estate

The first question on what exactly an agent is not the same buyer at home. The first time he has access to homes for sale. This list will be the first brokerage network before it is published on the Web or in print. Your local broker will have more information on the current market trends, and the manner in which the market is going in your area. He will be the first to know a good house lands on yourThe choice of the area.

Get Listing Agent Network, or referral of your friends or relatives. Make a short list of agents and brokers to select a few and talk to your needs, even the budget for the homes of the future. Be honest and let them know that it will not be of interest to the highest bid. Want to go home and not at the expense of losing your peace of mind. Give us your specifications, such as 2,3,4 bedrooms that local area, any restriction to cross the street, so the more information providedreal estate agent will help him / her to understand your needs. Speaking with him that his bank would have in connection with a loan. Most real estate agents or brokers have connections with financial institutions and can help to reduce the use of paper.

Throughout the knowledge, experience, professional approach hawk eye of a mediator brings to the table, which is going to tour the property. This is an important part of buying a house. Do not worry if you do not find the house right after a fewvisits. It takes some time before you get your first dream home.

Be careful, when you go out for looking home, every home you tour looks great, specially if you have been living in an apartment. This is common apartment complex syndrome. Always match home specs with your specs, what you want not what is shown to you.

Where to get mortgage or where to apply for a loan

Almost 99 percent of home buyers finance home through mortgage companies. Only 1 percent of rich people can buy the house with cash. We are all in the same boat. You may ask what loan is best for you, or where to purchase mortgages. The bottom line, you want a loan at interest rates lower, with zero points.

You can get loans broker loan mortgage company or commercial banks. Each unit is treated in another way. Where you might have a better management mortgage brokers, as is the mediator between the buyerand lenders and their interest to make money on one side or both sides. Such brokers are independent and their work, in collaboration with a broker or bank important. The main thing is to see the paper terms and conditions of the rate lock period, all points will be applied to your mortgage and what costs will be added to your loan. Since they operate independently, there are different rules. For small, you do not want do not inheritbad loans.

The next option is to go through a broker, banker, broker this type of work with a specific bank for many banks and contribute to a better price for the banks to obtain. Ability to negotiate less than what he had to do with the policy of the bank. The fee structure will be standard, and there is no discount available. The paper work is more worthy of trust, as is done in collaboration with the bank.

Another option is to negotiate directly with commercial banks such as FremontBank, Citi Bank and Bank of America. Some of the benefits of doing personal loans, the bank will give you competitive prices, then already do business with them.

Some of the other options, credit unions and private lenders. If you are a part of a credit union, with those who are your options. You can have a better chance of obtaining a loan of competition from them as you meet the selection criteria.

Whatever option you choose to use a loan;Finally, you must decide if the loan product that feels. Want to go to a 80/20 loan product, which means that there will be 20 percent of the house to pay the price of deposit and the remaining 80 percent will be financed by the Bank. Other popular products are 85/15 and 90/10 for the market at high prices. Until recently, even 100 per cent interest interest-free loans available to the buyer. After the collapse of the housing market that the power has been interrupted by all banks. The factor of loan, you have to factor inyou plan to buy a house. You must be comfortable for the payment of a deposit without impact on other obligations.

Time to look for the dream

Well, we have provided the dilemma before buying a house, have struggled to find a mediator. Get your facts and spec list broker. We covered the option of a loan. The next big step is to go out and see the property.

Buying a new home

Why should anew house, only it is new?. Many people do not like the previous owners taste and sympathy is not hereditary. They do not know how the layout and colors on the wall does not. A choice of cooking styles may differ, etc. If you fall into this category and do not want a large sum of money on an upgrade or a new home is the choice for you will not.

Before scanning for new properties in the choice area, visit the model home, and thus is zero on a model that have been finalized. Once the selection is in place, it seemsBroker who will represent for the purchase of new property. Do not use builders Broker, are paid to work for the contractor, and not receive any extra commission on the house sold. In addition, the contractor will be faithful as possible. Chances are your broker will be paid a commission by the manufacturer to ease his house today.

Some of the things you want to control the purchase of a new home

Builders Do not use if your broker broker

DoDo not use the builders lender to borrow a loan

Check the prices before you update the design documents

Confirm unforeseen Department

Check the warranty period, and that everything is under warranty

Check the manufacturers' past performance

Coming home inspection done, even a new home.

Buying an old house, you've already thought made for an existing house and you do not mind moving to the former owners the choice of landscape or the interior design is not. You do not have to go far to upgrade the future if necessary. Nowshould be clear from the location where you want to buy a house. Less confusion about the choices that will make you more concentrated in a house to buy. If you prefer to have only the houses of the city, there is no point in going to open houses for single-family homes. The more you focus on your needs, you get a good home. Weekend Open House Wy few visits with the broker. Some things you might want to go, while looking for houses.

It is home to the streets

What is the noise

Istoo close to school premises

Check if the roof is replaced

How well do fencing, many sellers to paint the fence to give the new look

Take control of pests that

What is the status of the air conditioner

If the carpet is old, the seller will replace or give discounts

Check the dishwasher, disposal, electricity and health —

When the paint was done last



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