Buying A Home
You have made the decision to buy a home; but what next? The best way to
approach buying a home is in a systematic approach to the home buying process.
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.
Whether you are a first-time homebuyer 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 we meet.
Homes and financing are closely intertwined. (Financing is the difference
between the purchase price and the downpayment, 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 downpayment 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 homebuyers 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.
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.
If you have any questions about the items listed above I am happy to provide
assistance at no cost to you. Simply contact me at the link below and we can set
up a convenient time to get together and help get you on the no hassle road to a
new home.
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