Step 2: Get Familiar With The Mortgage Industry And The Lending Process
Finding the right loan and lender is crucial to your home buying success. It's up to you to determine which lender is best for your needs, and it's always a good idea to have at least a bit of background about the loan process before you talk to a lender. Not all lenders are equal and knowing what your talking about will save you in the long run.
Step 3: Get Pre-Approved For A Mortgage
Do you know how much house you can afford? Probably not, unless you've talked with a lender.
Pre-approval helps you in other ways. Consider this scenario: A home seller gets two similar offers, one is accompanied by a letter from the buyer's lender stating they are pre-approved for a mortgage in the amount of the offer. The other has no supporting documents showing their loan qualifications. Which offer do you think the seller will consider first?
Talk to more than one lender. Not all lenders have access to the same loans and rates. Shopping for your loan could save you hundreds upfront and even thousands over the life of your loan.
1st Time Buyers, Poor Credit, Past Bankruptcy or Foreclosure, Self Employed... There are many programs available for all types of buyers to include "No Money Down" and "Low Monthly Payment" loans.
click here to shop for loans and programs - FREE
Step 4: Determine Your Wants and Needs
Buying a home isn't as difficult as you might think, even if you're short on funds, but the process will go a lot smoother if you get familiar with your real estate market and narrow down your wants and needs before you start looking at houses.
Know how much you want to pay each month and stick to looking at only homes in your price range. Don't buy more than you can afford. Many buyers hope for a raise, bonus or spouse going to work to justify the higher payment. Paying more than you can afford is the #1 way homes go into foreclosure.
Step 5: Learn To Work With A FREE Real Estate Buyer's Agent
Real estate agents represent buyers, sellers, or both--and in some states they can work as neutral facilitators for either party. It's essential to understand agent duties and loyalties before you make that first phone call. Working with one of our buyer agents is a free service and using the listing agent for help could cost you a lot of money.
Question: If the listing agent represents the seller under a legal contract to get them the highest price and best deal possible on the sale of their home, how is that same agent suppose to turn around and get the you the lowest price and best deal possible? They Can't!
Why are buyer agents free? When a seller puts their home on the market they agree to pay a commission to the listing agent and a commission to the agent that represents the buyer. This commission is established prior to listing the property and should not be added to the value of the home. Many listing agents will only show you their listings in an attempt to collect both sides of a commission.
The old myth that a listing agent will cut their commissions or get you a better deal if you work with them is untrue. A buyer's agent job is to protect you and only you. They help you obtain financing, show you all the homes on the market meeting your needs and negotiate you the best deal possible. Remember, our goal is to save you at least $10,000 when buying!
click here to find a FREE buyer's agent in your area
Step 6: Start Searching For A Home
Your buyer's agent will give you multiple listing sheets to study. I'm sure you'll also pick up home magazines and read classified ads in your local newspapers. You'll probably spend time surfing the Internet for homes. You might even plan afternoon drives to preview neighborhoods. Those are all excellent ways to see what's available. Many homes in magazines or newspapers are already sold. Some agents still advertise sold properties in order to find buyers and help them buy one of their other listings. Some ads just take too long to publish and by the time they hit the magazine racks, they are sold. By letting your buyer's agent know exactly what your looking for will help them search and pull up home that are still available and meeting your needs. Listings on TodaysHomeBuyer.com are updated daily and many of the "For Sale By Owner" homes are not accessible by real estate agents.
click here to find a FREE buyer's agent in your area
Step 7: Handle Pre-Offer Tasks
Deciding whether or not you want to buy a house that involves a look at its structure and its features, but there are many other topics that are every bit as important to your purchase. Write down any questionable items you find walking around the property. Look for damage, missing items, stains, holes in doors and walls, appliances... Address these issues prior to writing an offer of ensure your buyer's agent ads it to your offer.
Step 8: Making An Offer
There's no one set of instructions that can cover all the differences in real estate laws and customs that exist throughout the United States, so the mechanics of making an offer and its specific contingencies depend greatly on your location. However, there are some home buying tips that can help you fine-tune your offer, no matter where you live. Use a buyer's agent if it's a home in the MLS and have that agent assist you on your offer. They have years of experience to help you make the right decisions. If your buying a "For Sale By Owner" home it may be advisable to have a real estate attorney assist you. Many sellers expect to barter the price and repairs of a home so be prepared to go back-and-forth a bit on your offer.
Know your loan. When writing an offer you may need to ask for financing help from the seller in order to get your loan. Even though you may be on a '0' down program, you will still need your closing costs (about 3% of the sale price). Sometimes you can ad the closing costs onto the price of the home and ask for it to be applied to your loan.
Step 9: Getting A Home Inspection And Other Tests
In some states, home inspections are accomplished before the final purchase contract is signed. In other states, inspections take place after an offer is finalized. No matter when you do them, it's critical to decide which inspections and tests you want to perform.
Talk with your buyer's agent or other advisor to find out when inspections should be handled and if additional types of testing are important for your specific area. Some inspections to keep in mind are: General home inspection, Pest inspection, Septic systems, Well systems, Geological and Surveys.
Step 10: Avoiding And Correcting Last Minute Problems
As your closing date nears, everyone involved in your real estate transaction should check its progress on a daily basis, because staying on top of things means you'll know immediately if there's a problem that must be dealt with. Common problems that may arise are: Repairs still need to be completed; Last minute conditions on your finances; Problems on the title report; Seller moving out on time and Closing around holidays. Any of these issues can cause problems and stress during your transaction. Staying on top of things will greatly reduce delays and headaches.
Step 11: Closing Your Home
Most of your home buying problems are behind you now and you're on your way to closing, also called settlement or recording. This event transfers ownership of the property from the seller to you. Once the home has transferred or recorded in your name you should have already made arrangements on obtaining keys, garage door openers and operating manuals for any specialty items left in or on the property.
Top 3 Ways To Save Thousands when Buying:
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Find The Proper Loan - The #1 way to save money is by finding the loan that meets your particular needs and then shop it.
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Avoid The Listing Agent - The listing agent represents the seller and has promised them the highest price and best deal. How can they get you a better deal? They Can't!
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Get The Right Inspections - Even a new construction home can have hidden issues. Avoid costly repairs by having a professional find them before you buy.
Today's Home Buyer will save you thousands by (1) helping you shop for the best loans available, (2) through tough negotiations on your behalf against the seller and their listing agent and (3) suggesting proper inspections to help prevent hidden or costly repairs.
We work with over 180,000 FREE Buyer Agents across the U.S. to ensure you save!
