Home Buying 101
If you are a first time home buyer, you will need these instructions on Home Buying 101. Buying a home is a very complicated process since you will be involved physically, mentally, financially and of course, emotionally. Regardless of the way you want to pay for your ideal home, you should have a better understanding on the home buying process. In order to avoid any confusion throughout the process, the following Home Buying 101 advice will be your guide.
To understand Home Buying 101, you will need:
- Pre-approval letter
- Home inspector
- Figure out your criteria. The first step of Home Buying 101 is to think about what you want for your ideal home and list them on paper. Your criteria are as follows: location, price, size, amenities, neighborhood, property tax, HOA fee, etc. To have a reality check, do a brief search based on your criteria using the internet to see what exactly is on the real estate market. You could also drive around or walk through neighborhood that you are interested in just to get a feel of it.
- Get a competent lender. The second step of Home Buying 101 is to get a pre-approval letter from a lender if you need a mortgage. Working with a bad lender can waste your energy, time and money. Buying your ideal home successfully will turn into a joke. At the end of the day, it would be wise to search for the right lender to work with. Make sure that the lender has no criminal records and is currently licensed by the state. Note that you must have your pre-approval letter for making offers.
- Work with a competent realtor. The third step for Home Buying 101 is to get assistance from a real estate expert. If you are dealing with a FSBO, you probably can handle it yourself. However, in order to view or buy any real estate listings, you must be represented by a realtor. Besides, a realtor can help you with the followings: offering price advice, negotiation on sales contract, market updates, etc. The best way to find the right realtor is to ask your friends and family for referral. Or, just visit the website of your local association of realtors and search for a competent realtor.
- Get a home inspection. The fourth step of Home Buying 101 is to get a home inspection when making an offer. Although the seller's disclosures will tell you the conditions of your ideal home, it doesn't really provide any in-depth information. Let's say the home inspector found out that there are some major issues which are hideous. At this point, you have all the rights not to buy this home. Unless you really love this home and don't mind paying for all the future repairs, you should move on and look for another home.
- Review all the contracts carefully. The last step of Home Buying 101 is to always go over any contracts prior to signing them. Dealing with contracts is unavoidable, as it is part of the home buying process. Since the purpose of contracts is to make things legally binded, you can get yourself in legal troubles if you sign any contracts by mistakes. Never go by any verbal agreements, as they can be totally different than anything written in the contracts.
These five steps on Home Buying 101 should make the home buying process very simple. Any first time home buyers will definitely have a better idea on what to expect when buying a home. Now, you can enjoy the home buying process without any potential loss on your time, money and energy.