Buying a home is one of the biggest investments you will make. Some people choose to hire a realtor for services they provide and assistance finding houses. Other people like to look around and find a home there self saving the cost of a realtor.
But the first step in buying a house should not be finding a house or hiring a realtor, the first step in buying a house you should double check your finances and credit score.
Depending on your credit score banks like to have a minimum of 5% - 10% of the morgage for a down payment. Also you have closing cost and other fees that may be required.
To assist you in making informed decisions and to provide to you some general information about the home buying process, I put together a home buying guide.
- Know Your Credit score
Your credit score determines your interest rate for the loan, be sure to check there is nothing on your credit report that should not be and that there is nothing that you may have forgot about. Try to reduce your monthly debt obligations by paying off any existing debts or loans.
- Find And Compare Morgage Lenders
It is a good idea to go talk to your bank and other morgage companys to compare there intrest rates and get pre approved for a loan to see how much you can realistically afford. Having a pre approval letter may boost your negotiation leverage. Also consider a FHA loan, they have very competitive interest rates, low down payment requirements, and flexable closing cost options.
- Find Your Home
When choosing your home there are many things to think about, be sure to choose a house that has enough space for your family and meets all your needs. Most houses can be remodeled to suit your lifestyle but if you are thinking about buying a house and adding on a extra room or doing serious renovations be sure to check with the local zoning commision prior to buying the house to make sure your plans would not violate any zoning regulations.
- Inspection And Disclosures
Never buy a house with out having it inspected by a licensed qualified inspector. Most people know very little about electric, plumbing, and other mechanical systems. To a untrained eye every thing might appear ok but repairs to the houses mechanical systems can cost hundreds or evern thousands of dollars. Also most states have laws about the types of disclosures you are entitled to recieve, be sure to read through these throughly.
- Make An Offer
Buying a house is all most like a auction, the seller has a asking price. You would make an offer to the seller which they may accept or reject. If they deny the offer then begins the negotiation process. All ways offer less than the asking price to leave room for negotiation.