If you are contemplating to buy a house or not, here are a few basic things to consider.

  • +Do you feel comfortable that your employment is secure and that you can afford it?

  • +Do you have the time and desire to keep a home in good repair?

If the answer is yes, then there are some very basic and important steps to buying a house.

Whether you are a first-time home buyer or not, you should work with a real estate agent because they understand the real estate market, can be a valuable source of information concerning the home buying process, as well as assist you in preparing a real estate sales contract.  All real estate agents have access to the Multiple Listing Service (MLS) which is a service that lists all the properties for sale by most major brokers across the country. Normally the seller pays the real estate brokerage sales commission which causes a question of who is representing you in the sales transaction.

In today’s real estate market you can get rock bottom deals. A new home may cost you a little more, however you may have to spend big bucks to bring a pre-owned home up to current energy codes and you may incur many other repairs.  Savvy pre-owned home sellers understand new home competition and will make upgrades and repairs to attract the right buyer.

There are three known requirements in regards to buying real estate, location, location, location. Look at neighborhoods, schools, nearby shopping and other services that play a large part in making a neighborhood attractive. These features may not affect you now, but they may affect your future buyer. This factor will also apply to a house that has a negative aspect that you feel you can live with; future buyers may be turned off by it. Other factors to consider are:  crime rates, taxes, transportation, town services and the local zoning laws.

Can you presently afford to buy a house?  Can you obtain a mortgage if the cost of the house is more than three times your annual household income? The mortgage company will hold your monthly payments to approximately 33% of you salary. Little debt and a larger down payment will qualify you to buy a more expensive home.

Considering that a home mortgage is one of your largest investments, approach it in a pragmatic manner and be conservative. First this is your home, your nest, your abode, etc. and an investment second. If you are betting on the future and over-buying, you stand a good chance of losing it all which would limit or maybe even prohibit future purchases and cause your credit rating to be marred as well as hiking future interest rates on all borrowed funds.

If you decide not to retain a real estate agent, here are several tips you should follow as you pursue one of the biggest purchases in your life. Ask your family and friends for a referral to Mortgage Loan Officer and have your credit reviewed and your home loan pre-approved.   If you are short on cash, try negotiating with the seller to pay some of the closing costs. This is not an unusual request for buyers to ask and the worst case scenario is that they will just say no.

Buying a house is a legal action requiring your signature on legal documents and a mortgage note. If you have retained a real estate agent, she/he is qualified through training and licensing to advise you and to protect your interests. If the real estate agent were to breach a trust to the buyer or seller, he would stand to lose his real estate license. If you don’t have a broker or if you feel uncomfortable about what you have been told or read, you will want to retain a lawyer to review all written documents prior to closing.

RESOURCES

What are the steps involved in buying a house? – msnbc.com

Basic Tips and Ideas for First-Time Home Buyers | Buyers Basics 

Buying a Home/U.S. Department of Housing and Urban – HUD

5 key steps to buying your first home, tax credit or no – USA Today

How to Buy a House: 7 steps – wikiHow

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3 Comments

  1. WOW just what I was looking for. Came here by searching for amortization

  2. I’ve recently started a website, the information you offer on this web site has helped me tremendously. Thanks for all of your time & work. “The murals in restaurants are on par with the food in museums.” by Peter De Vries.

  3. Second mortgage or home eqiiutes do show, when recorded and this is the issue. I used to work for a title company for a major lender and issues do arise. Some lenders send the home equity to be recorded themselves, lenders don’t know all the variables that go into a recording, they miscaculate fees, don’t know about cover pages, maybe there’s a dual tax id and it costs more, some states only accept single sided mortgages. Maybe the county rejects the mortgage as the font is too small, the notary stamp bled through the paper, or there is no stamp or seal at all. If it’s rejected, the county sends it back to the lender, who most times thinks the mortgage is recorded until the borrower goes to refinance and the he is not on record so it takes them 6-8 weeks to go to their vault where they hold everything to either figure out the mortgage was not recorded or they don’t have it at all.I don’t know why people like home eqiiutes, for some it’s a status thing ..I have a 500k home equity ..some need money quick and dont understand the full economic process and think home eqiiutes are a good deal because the rate is low. Like any other mortgage product, home eqiiutes have their usefullness, but it’s not for everyone or every situation

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