How to buy a house
Buying a house is much different than buying any other asset such as stocks, bonds, or mutual funds. There are more costs associated with buying a house and it will most likely be the biggest debt you take on in your lifetime. Buying a house has many tax advantages. To buy a house you will need to adhere to a simple process and it will take some effort on your part to ensure that the house buying process is smooth.
Perhaps the biggest part of buying a house is the financing. There are very few all cash offers. So take the time to work with someone you trust will do a good job. Make sure whoever you work with is familiar with all the expenses of owning a home. There are hidden costs to homeownership and your Mortgage Professional should be able to help you uncover those that will apply to you. If you need a first or second opinion you can always call me at 888-418-4467 anytime!
Buying a house is one of them most important decisions you will make in your life. Homebuyers should have a plan when deciding on purchasing a home. This plan should take into account their present situation and also future plans. Having a plan when buying a home will save buyers headaches down the road.
Make a budget and track all of your spending. See what you can live with and without. Then as you look at your budget, ask yourself if you can afford all that comes with a home, i.e. taxes and insurance. If you feel it's right for you, then seek out a highly qualified mortgage professional.
It is very common for people to buy houses that they can qualify for, however they may end up way to expensive for the borrower. Just because you can qualify for a home worth $500,000 does not mean you need to buy a home for that amount. Have your mortgage professional provide an idea as to how much your payment would be on that mortgage. You know your finances better than anyone else and you know what your financial goals are better than your mortgage professional too. If you are trying to put 20% of your monthly income away towards investment and/or retirement accounts it probably would not be a good idea to buy a home that gives you too high of a monthly payment to continue to allow you to keep making your investments toward retirement. Know how expensive of a home you can afford while still allowing you to maintain a lifestyle that you are used to, and the financial goals that you desire. Work with a local mortgage professional to find out how you are able to qualify for a home and still keep your other finances steady and unchanged.
Think about how the house is going to fit into your overall lifestyle. Start by thinking about your situation in your career and personal life. Are you really ready to buy a home if you found the one you liked? How much space do you need to have? What areas of the community are you attracted to? Make a needs and wants list and to better prepare in finding a home that fits you, not the other way around.
Even if you aren't going to buy a home right now, it is still good to educate yourself about the loan process, and what goes into getting a mortgage. It isn't a simple process that can be completed in a few days. It usually takes around a month, and sometimes longer. You should have a trusted mortgage professional in mind ahead of time, so that you know who to go to when you are ready to buy a home.
The first thing you need to do is ask yourself "Am I ready to buy a house?" If the answer is yes, then you will need to contact a local mortgage professional that can prequalify you. The prequalification-qualification will tell you if you are able to purchase house, and the price range in which you should be looking. The mortgage professional will only give you an idea of the price in which qualify. Remember that you are the one who has to make the payments every month, and you are the one who has to feel comfortable with that payment. If you are in need of becoming pre-qualified, feel free to email me at firstname.lastname@example.org.
If you are not ready to buy a house, that is ok too. Purchasing a home is something that has to be done when you feel like you are ready for the responsibilities that come with home ownership.
In some states, it is customary to have attorneys handle real estate transactions. For home buyers in those states, to protect what may be the largest investment in life, it is prudent to hire a lawyer experienced in real estate transactions soon after the subject property is found. Some of the attorney's responsibility include drawing up the contract, ordering title search on the property, and accompanying the buyer to the settlement.
You should always bring your loved ones or the people who will be living with you as to get thier opinion if they like the house as well. Since a home purchase is not something you can change your mind on after you remove contingencies without losing deposit money.
- GET PRE-APPROVED: Always speak to a Mortgage Professional first to make sure you know what you can qualify for.
- BEGIN VIEWING HOMES: Work with a reputable Real Estate Agent to find the right home
- PUT AN OFFER: An offer requires Earnest Money so be prepared to put money down
- REVIEW LOAN OPTIONS: Today there are many loan options to choose from, discuss them with your Mortgage Professional
- GET HOME INSPECTED: If your home has problems, you want to identify them immediately
- GET HOME APPRAISED: An appraisal gives your home a monetary value
- CLOSE ON YOUR HOME AND LOAN: There are two separate closings, changing ownership and closing on your loan.
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Information listed above is to be used for educational purposes only and is not guaranteed