Home Buying Process

By: Richard Romando
Submitted: 2007-01-17 16:16:13
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

Buying a home is a very big investment for most people. It’s a big decision to make. A booming real estate market and easy availability of finances is making this dream come true for many people. Owning a home is not just a good investment, but it also offers other advantages such as tax savings, limited monthly costs, forced savings and, most importantly, the feeling of being independent. There are many prerequisites for owning a home: a stable income, a good credit report, some cash for a down payment and up-front fees, the ability to get a mortgage and, most importantly, the house.

The home buying process is rather complicated, especially for a first time buyer, and may take several weeks. The first stage in the process is to identify a good house. Consider the location, the neighborhood, facilities both in the house as well as nearby, the amenities in the house, proximity to the workplace or the school, the kind of home you want, and many other factors. You can get the help of a real estate agent for this. Newspaper columns, the Internet, “for sale” signs, and friends and family members are also some of the most common sources of information.

The next stage is to identify your credit rating. Is it good enough to attract a good mortgage rate easily? Plan your finances to cover the mortgage payments every month, work out how much you can really afford (make a budget), determine your net worth, find a good mortgage agent, get a pre-approval for the mortgage, make an offer to the seller, finalize the deal, exchange contracts and title for the house, and finally you can move in. The offer documents generally contain the selling price, any concessions desired, financing contingencies, home inspection contingencies, a clear definition of what is contained in the sale, and the deposit amount that is tendered with the offer. You would need the help of a lawyer, a home inspector, an appraiser, an insurance broker, a land surveyor, and, if you are building or rebuilding the house, a builder or contractor.

The formalities which need to be completed before the final closing are the settlement statement, contract, loan papers, title insurance, homeowner’s insurance, the title or deed, and the down payment and closing costs. Before signing the final contract, check the kind of disclosures offered by the seller, home inspection reports, the real estate agent’s title search services, and the other costs involved in the whole process. Mortgage loan insurance application fee and premium, appraisal fee, deposit, down payment, home inspection fee, land registration fee, property insurance, title insurance, legal fees and disbursements are some of the general up-front costs.

Home Buying provides detailed information on Home Buying, Home Buying Process, Home Buying Tips, Buying A Home With Bad Credit and more. Home Buying is affiliated with Home Selling Assistance. ===>

Article source: Expert Articles

Most Recent Articles in Real Estate category

  • Sub Prime Mortgage Cheat Sheet - By: Mark Hostetler
    We gather around the water cooler, absently nodding in agreement when a co-worker mentions how Hedge fund losses have contributed to the crisis, but what does it really mean?
  • A Compelling Blog for the Realtor - By: Mike Andruff
    This doesn't mean that all of your posts have to be about idyllic homes with flowers and chirping birds, in fact, people like a good spice of negativity with their positive soup, so don't be afraid to rant on occasion. Just don't make it all the time. Your readers will pay more attention to your rants if you pop them in with more positive blog entries.
  • The Stories Your House Can Tell - By: Mark Hostetler
    Many owners of historic character homes become curious as to its origins. After all a hundred year old home has a lot of stories to tell. Tracing its roots is similar to tracing the genealogy in a family. Like pieces of a jigsaw puzzle, you gather clues from leftover paper trails and information from long-time residents to assemble a chronologic history of the building.
  • Is That Home Overpriced? Don't Pass It By - By: Matt Barker
    There are houses that you might be overlooking because they are priced significantly out of your range. However, don't discount these properties immediately. With the help of your Realtor(R), you might be able to find an overpriced home and make an offer that will be accepted.
  • Gamer's Guide to Real Estate - By: Justin Havre
    With an emphasis on real estate development, this PC game revolves almost exclusively around the buying, building and selling of houses. Players can flip them or rent them, upgrade them, build parks in strategic locations, or schmooze with the mayor and woo movie stars. Players can choose from career or casual modes for game play. Touted as being both easy and challenging, Build-a-lot is a suitable introduction to real estate development for children and teens.
  • Make Your Home More Appealing to Buyers - By: Mike Andruff
    Curb appeal, in a buyers market, it's an essential concept that sellers need to understand. Basically, it means making your home appealing from the curb and beyond. It means that the first view a person has of your home appeals to them. It's about making a great first impression.
  • Americans Want Green Homes! - By: Carol Freyer
    A poll where prospective home-owners would choose 'green living' over luxury goods reveals the struggle that many Americans have faced, in fact 81% of participants admit to financial set-backs in their house buying plans. Most obstacles are quoted as revolving around the economy, the house prices and their own incomes, according to the survey.
  • Astrology, Feng Shui, Magic Spells... and Selling Homes - By: Carol Freyer
    Astrology has been used to divine the future since before the Common Era. Many people today view it as a harmless amusement. Move.com even has a section for "homestrology" profiles. Realty Times did an article entitled, "Look to the Stars for Decorating Advice", featuring astrologer John Marchesella, who claims that knowing your Sun Sign can help you choose colors for your home.
  • Small Is Beautiful - By: Carol Freyer
    While the size of the average home gets bigger and bigger, it's refreshing to see the conscious shift to smaller homes that some people are making. Because along with that decreased space comes a decreased environmental footprint, and a decreased energy bill. If the home is well designed with functionality in mind, the living, as they say, is easy. And there's even a Small House Society!
  • California Urban Advocate and Financial Expert Compares Home Loan Bank Executives to Drug Dealers - By: Butch Grimes
    Minority advocate, real estate educator and radio talk show host Butch Grimes appeared on Fox news this past Wednesday to share his listeners' responses to the current state of the real estate and financial industry. While Grimes' statements that listeners are confused and scared is no surprise, his off camera comments comparing bank executives to drug dealers have garnered passionate responses from both his radio show listeners and many in the financial and real estate industries.