Wednesday, April 21, 2010

Buying a New Home Can be Stressful...... But It Doesn't Have to Be

Puchasing your first home can come with a lot of emotions. Stress, anxiety, excitement to name a few. But there are some things that you can do to prepare yourself for the homebuying process and to help eliviate those unwanted emotions! First thing is first.... set a budget! When looking at houses, you want to make sure that they are in your price range and that your monthly mortgage will be affordable. Next, qualify for a loan. It is important to know your credit score before you meet with a representative from the bank. The better your credit score, the lower your interest rate may be. Now the fun part, Shop for a home.. It is easiest to hire a real estate agent that you trust and that knows the area that you are looking. Agents will be able to find the house you are looking for in the budget you have set. They typically have insight on homes that are coming onto the market. I have found that driving around areas that you are interested in living and looking for For Sale signs works great! When I was purchasing my first home, that is how we found our dream house! Just write down the listing agent and their contact information and start calling! Next, strike a deal. If you find a house that you like, its in your budget, and you can see yourself living there, make an offer. It doesnt hurt! You will either receive a counter offer or your offer may be accepted. If they come back with a counter offer, you can counter right back and negotiate until you reach an agreement. This can be a stressful time, but your agent should be knowledgeable enough to help you decide on an offer based on the home's value and one that's realistic for the market. Once the house has gone under contract, it is important to have your loan finalized, if that is how you intend to pay for the house. The bank will request several documents so it is also important to have information like pay stubs, past tax returns, checking and savings account bank statements, 401(k) and IRA statements available. Inspect the home. ask your realtor if he/she knows of any good inspectors in the area. The inspector will need to check the roof, walls and foundation, the heating, AC and electrical systems before you close the deal on the house. You want to make sure that this house is safe and not going to fall apart the day after you move in! From there, the inspector will give you a list of potential repairs. If there are major repairs that need to be completed, this may lead to renegotiating the price. Before you close the deal on the house, you will want to do a final walk-through of the home. This is the time you make sure that the inspection issues were fixed. Last but not least, close the deal! There are some closing costs that you want to be aware of before closing day, which include loan processing fees, appraisal of the home, attorney fees and inspections.But after that, this is the MOST exciting part of the entire process. After a stack of papers are signed, the keys are yours!


So when buying your first home, or even your second these are just some general tips to get you started and prepare for the long, exciting process.

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