Systematic steps to help you buy your home.
Are You Ready?
Knowledge and experience are the keys to successful real estate transactions.
REALTOR.com® contains an enormous amount of valuable information,
and such data -- combined with the expertise, experience and training
of local REALTORS® -- can be the essential keys to your success.
One of the keys to making the home buying process easier
and more understandable is planning. In doing so, you'll be able to anticipate
requests from lenders, lawyers and a host of other professionals. Furthermore,
planning will help you discover valuable shortcuts in the home buying
process.
Do You Know What You Want?
Whether you are a first-time home buyer or entering the marketplace as
a repeat buyer, you need to ask why you want to buy. Are you planning
to move to a new community due to a lifestyle change or is buying an option
and not a requirement? What would you like in terms of real estate that
you do not now have? Do you have a purchasing timeframe?
Whatever your answers, the more you know about the real
estate marketplace, the more likely you are to effectively define your
goals. As an interesting exercise, it can be worthwhile to look at the
questions above and to then discuss them in detail when meeting with local
REALTORS®.
Do You Have The Money?
Homes and financing are closely intertwined. (Financing is the difference
between the purchase price and the down payment, commonly referred to
as debt or the mortgage.) The good news is that over the years new and
innovative loan programs have evolved which require a 5 percent down payment
or less. In fact, a number of programs now allow purchasers to buy real
estate with nothing down.
In addition to a down payment, purchasers also need cash
for closing costs (the final costs associated with closing the loan).
Several newly emerging loan programs not only allow the purchase of a
home with no money down, but also underwrite closing costs.
Not everyone, however, elects to purchase with little or
no money down. Less money down means higher monthly mortgage payments,
so most home buyers choose to buy with some cash up front.
As to closing costs, in markets where buyers have leverage,
it may be possible to negotiate an offer for a home that requires the
owner to pay some or all of your settlement expenses. Speak with local
REALTORS® for details.
Is Your Financial House in Order?
Those great loans with little or nothing down are not available to everyone:
You need good credit. For at least one year prior to purchasing a home,
you should assure that every credit card bill, rent check, car payment
and other debt is paid in full and on time.
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