|
What to expect when buying a
home? What to expect when buying a home - There are many things a consumer should expect when they are looking to buy a home and especially their first home. One thing you should expect when buying a home is that you will have to obtain a mortgage for the property. While there are a very few people out there who do not need to obtain a mortgage and can afford to pay cash for their homes, most consumers will need to obtain home loan financing. A mortgage is a loan that uses the house as collateral. Typically many mortgage loans are for 30 years and there are tons of home loan programs that are available to choose from, such as an ARM, a fixed rate, stated income documentation, balloon loan, etc... You should expect to purchase home owner's insurance that is good for one full year. Most lenders will require a one year's paid receipt before the mortgage can close. The cost of the insurance should be added to what you are expecting to pay in total closing costs. You should check with the insurance company that you have all of your other insurance with. Often times, they will be cheaper because you have so many other policies with them. Another item that is often overlooked when buying a home is a home inspection. Although is not necessarily mortgage related, a home inspection is well worth the investment. A home inspection is a very in depth analysis of the condition of the home you have selected. It is very different than an appraisal which is just an opinion of value. The home inspection will uncover problems that both the seller and real estate agent may not be aware of or may not have disclosed. It will also give you a bargaining chip to negotiate a lower sales price if the home inspector discovers a needed repair. One cost most home buyers do not account for is the cost of all the personal touches you will want to add to your new home once you move in. It is not uncommon for people to spend hundreds or even a couple thousand dollars in the first couple of months in a home with basic cosmetic changes. Things like, painting, changing kitchen cabinet hard ware, wall papering, tools, window treatments, rugs, gardening supplies, new bathroom fixtures, etc. can add up fast. Remember when you are buying a home, especially if this is your first home, you will need to take care of the exterior of your house. This will include the landscaping, your lawn and maintenance, siding on the house, and many other items. If you do not already have a lawn mower you will need to consider buying one. There are general gardening and landscaping tools that will be very helpful in maintaining and creating a lovely yard and exterior appearance. Process of buying a home - When you are looking to buy a home you should consult with your mortgage professional first before you do anything else. You need to find out how much of a home loan and a home you can qualify for and how much you can afford. Call now at 888-418-4467 or email at dave@gofirstsecurity.com to find out how much you qualify for. Once you have contacted a local mortgage professional, they will be able to answer any questions that you may have in more detail. It is a good idea to write these questions down, and then go through each one with your mortgage broker. If this is your first home, do not hesitate to ask any questions. The more you know, the easier the process will be. Getting pre-approved is a great way to begin the home buying process. Having a pre-approval in hand is like telling the seller you are paying cash for their home. A true pre-approval is an approval conditioned only upon an appraisal of the home and proper title work. When you have selected the home you wish to make an offer on, include a copy of the pre-approval letter you receive from your mortgage professional. This will give you the leverage you need to buy more home for less money. It will also cut about two weeks off of the closing process if done properly. In order to obtain a pre-approval, simply provide the following during your loan application appointment:
* The last 30 days worth of pay stubs
* The last 2 years W2's or tax returns
* 2 recent bank statements for your checking & savings accounts
* One recent statement for ALL other investment and/or retirement accounts
Other items (if applicable)
* 12 months cancelled rent checks or your landlord's contact information
* A copy of your business license or CPA letter confirming you have been in business at least 12 months
* A letter explaining gaps in employment or delinquent credit issues
If you have trouble providing any of this information, talk with your mortgage professional about the other home loan options available. Having a pre-approval will make the home buying process much easier for all parties involved. After you have found a home you will need to make a bid on the home. When you make a bid on a house the seller will accept your bid, counter-offer with another bid or simply not accept your bid. Once your bid is accepted and the purchase contract or purchase agreement is signed by all parties involved, this is a legally binding contract and you should understand what exactly you are getting your self into. If you back out of your purchase agreement there is a good chance you can lose whatever earnest money you put down with the seller. Please consult your mortgage professional or Realtor if you should happen to have any questions before bidding on a home or before signing a purchase agreement to buy a new home. If the home you are purchasing is not brand new, it is usually a good idea to hire a qualified home inspector to evaluate the new home. Spending a couple hundred dollars now could potentially save you thousands in unexpected repairs if there is any damage to the home you are not aware of. While an inspection does not guarantee that the home is free from defects it is still a good idea, especially if you do not know what to look for.
Contact If you have any questions regarding our products, you can contact us by calling or e-mailing us and we'll get back to you as soon as possible. Thanks!
Information listed above is to be used for educational purposes only and is not guaranteed
Home | Sitemap | Contact Us | Links | Services | News | About Us | Ohio | Florida | Refinance | Purchases | Blog | Fixed Rates | Down Payment | CreditPrivacy Policy
| 
