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The DOs for Buying a Home

Are you thinking of buying a home for the first time? Does this seem like a monumental task that cannot be overcome? Can this be done without help? Where to start? These are some of the many questions that new buyers have without exception. This article will start you with the stages for buying a home with the assistance of a Realtor whose valuable guidance will bring you to closing without anxieties of missed contract deadlines that could cost you your earnest money deposit on the contract offer. Incidentally, if your last home purchase was long ago, this article will be a helpful reminder of the buying transaction process.

As important as a Realtor is to the buying transaction, the buyer, before choosing a Realtor, should be proactive. If getting a mortgage loan: a) buyer should shop around for the best interest rate from different lenders; b) from those lenders buyers should find out if an approval letter would be forthcoming after completing lender approval process. Getting the mortgage pre-approval/approval will help buyer target the maximum home price afforded by their financing budget, at this point buyer is ready to meet with the Realtor of his/her choice. It should be noted that a pre-approval is not the same as a lender approval letter, the latter only will show the seller that you are a ready, willing, and able buyer and therefore, will help the seller weigh your offer more favorably.

Before proceeding, however, there are a few tips about mortgage that are essential. There are three types of mortgage available to residential buyers, there are: 1) conventional loans from private banks; 2) FHA loans, and; 3) VA loans. A conventional loan can require up to a maximum twenty percent down payment, the size of the down payment depends on how the lender rates you as a financial risk. An FHA loan is three percent or less depending on the lender. The VA loan has no down payment requirement. However, mortgages are packaged differently by different lenders which make it impossible here to cover all the bases, nevertheless, the Realtor will be of great assistance pointing you to a lender.

Now that we understand the essentials for borrowing money, the next step is to meet with your Realtor of choice for a free consultation, this will help the Realtor understand the type of home and its features that is on your radar. The most common features are number of bedrooms and bathrooms, the size of the home, some architectural details: type of roofs, design styles, etc., the location, nearest school district, and many others. The Realtor based on the information provided will go ahead and generate a list of possible homes for showing. Be aware that the Realtor will need to receive from you an official photo ID, also ask you to sign a Buyer Broker Agreement form that spells out the Broker fees, the protected period agreement terms, and the termination date of the agreement.

The buyer after picking the must-have home will then ask the Realtor to make an offer to the seller through his/her listing agent. The buyer at this stage should get ready to demonstrate his motivation for ownership in offering the seller an earnest deposit, this has the effect of elevating your offer in the eventuality of the seller receiving other offers. The role of the Realtor henceforth will be to make clear for the buyer the terms of the contract and expected performance on the terms.

This brief article gives only the most important details for the buyer and should answer the questions that were asked at the beginning, particularly the last two. Visiting with a Realtor for a free consultation will always be of great benefit to anyone with interests in a Real Estate transaction.

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