Home > Blogs > Arizona Real Estate Associate Broker > Phoenix Arizona Real Estate - Gilbert Arizona Real Estate

Before Your Search Begins - Basics of Home Buying

By Arizona Real Estate Associate Broker

Real Estate Agent with MR Realty

October 16, 2007 06:10 PM

Introduction: Buying A Home

Buying a home can be an exciting experience. Understanding what to do and what move to make next is key. I have organized some short explanations to help you understand the process to help you learn quick and easily.

Buying a home can be one of the most rewarding and yet one of the most stressful experiences of your life. I hope that you find this series helpful and easy to read. There are several ways to make home ownership a reachable goal. Hopefully this series will guide you as you learn and understand the home buying process and that your experience will be as satisfying as the experience of living in your new home. If you have any questions or Real Estate needs, please don't hesitate to contact me.

Series 1: BEFORE YOUR SEARCH BEGINS

Understanding the basics of home buying and being prepared for all the steps involved will make your search easier, faster, and more enjoyable.

BORROWERS:

A Borrower is the party in a loan agreement which receives money or other instrument from a lender and promises to repay the lender in a specified time. Most home buyers need to borrow cash to pay home sellers in full. In the world of mortgages, a home owner's mortgage payments often become an investor's income. The lenders rarely meet the borrowers, so they rely on a system of detailed documentation to assure that you can the home you're considering are worthy of their investment.

LENDERS:

Various institutions lend money for mortgages. Among them are mortgage banks, savings and loans, banks, and credit unions. Lenders may keep loans and profit from interest and fees, or sell loans to other investors, profiting from the up-front fees and monthly payments from the actual lender.

PACKAGERS:

Huge financial institutions such as Fannie Mae (FNMA) and Freddie Mac (FHMC) (the two primary originators of home loans) are packagers. They buy loans from lenders (the ones you deal with), then either keep them or bundle them into large packages of $500 million or more. These packaged loans, called mortgage-backed securities, are sold with guarantees to large investors. In other words, if a home owner fails to repay a mortgage, the packager will pay the investors and take the loss.

LARGER INVESTORS:

The large investors, such as insurance companies, pension funds, and mutual funds, buy the packages to earn the interest paid on mortgages. Investors come from all over the world because American homeowners are considered to be among the most reliable groups of borrowers in the world. The reliable stream of payments is a source of steady income, and helps these investors plan their cash flow.

SMALL INVESTORS:

The large investors may attract small investors (people like you) by offering the prospect of sharing in the steady income and low-risk investments. One type of mutual fund, for example, is a Ginnie Mae (GNMA) fund, where the main portion of the income earned comes from home mortgage investments. So if you invest in an insurance policy or a mutual fund for its income, you may actually be receiving income paid from your own mortgage payments!

IT'S A FACT

For 2006, a total of 67,035 resale homes were recorded, in contrast to 110,835 sales for 2005 and 102,115 recordings for 2004. While the market slowed appreciable, 2006 is the fourth best resale market year on record, falling between 2002 (62,625 sales) and 2003 (73,785 sales) numbers.

Candace Robinson is an Arizona Licensed Real Estate agent with HomeSmart Real Estate in Gilbert/Tempe. As a member of our local Arizona Association of REALTORS® and the National Association of REALTORS®. I work with both Buyers and Sellers serving the East Valley and surrounding areas including Gilbert, Chandler, Tempe, Mesa, Fountain Hills, Apache Junction, Ocotillo, Scottsdale, Cave Creek, Phoenix, Queen Creek, Casa Grande, Maricopa, Ahwatukee and more.

Providing a full range of real estate services HomeSmart is the Smart Move for all your real estate needs. If you are looking into buying or selling a home in the Phoenix metropolitan area, hire a REALTOR® like myself, who wants to win your business and trust. I will be honored to share with you an educated idea of what your home's value is based on experience, local knowledge, and comparable actual sales in your neighborhood! To get a FREE no-obligation Home Evaluation specific to your needs be sure to contact me. If you have any general questions about buying or selling real estate with my HomeSmart marketing plan please don't hesitate to contact me at CRobinson@HSmove.com http://www.candacerobinson.com/ Copyright © CKR

Series 2: TO RENT OR TO BUY?

What are the benefits and limitations? When will you be ready to buy a home? Be sure to contact Candace Robinson Before Your Search Begins for all the Basics of Home Buying in Arizona!

Comments(13)

Comment

Show All Comments

Sort:

Jason Crouch

Austin Texas Homes, LLC - Austin, TX

Broker - Austin Texas Real Estate (512-796-7653)

Candi - Great Localism post. Keep up the good work, my friend.

Oct 16, 2007 06:16 PM

Arizona Real Estate Associate Broker

MR Realty - Mesa, AZ

Jason- Thank you!! I am trying to get better at posting there...hope it will help others!!

Oct 16, 2007 06:25 PM

Adam Waldman

Westcott Group Real Estate Company - Hauppauge, NY

Realtor - Long Island

CANDI: This layout is awesome. The content is great for Localism. Anyone looking for a home that saw this would have to be impressed. Great job.

Oct 17, 2007 12:00 AM

Adam - Thank my friend. I appreciate your input as always! I am working on some localism posts. I feel a little writers block in the personal department. Thanks for your vote of confidence. Hope all is well!! Have a great day!

Oct 17, 2007 02:54 AM

Jeffrey Malburg

RE/MAX Acclaim - Roseville, MI

Very informative, great job! Like everyone else is saying- it would be great for localism!

Oct 17, 2007 05:57 AM

Alan Kirkpatrick

Austin Texas Homes - Round Rock, TX

Alan in Austin

Candi

Another great post. Good quality informaton.

Oct 17, 2007 06:02 AM

Jeff- Thank you for your compliment! I think I do the whole localism thing correct, sometimes it's no where to be found there. I am so confused. Re-checking again!!

Alan - Thank you!!

Oct 17, 2007 06:12 AM

Shannon Lefevre

John R. Wood Properties - Naples, FL

Shannon Lefevre, PA Your Naples Smart Girl

Excellent post my friend....and who is that lovely lady pretty in pink! When I went to your blog I almost clicked off because I thought I had hit the wrong link! Woooweeee!!

Oct 17, 2007 02:38 PM

Shannon- You are the true lady that owns the rights 'in pink'!! I dug this older pic out for October Awareness Month after I was challenged to go 'pink' ...I think a few did the same as you, thinking they landed on someone else's blog. I guess it's time to go with a color photo!! I do have less blonde now!! Thanks for stopping by!!

Oct 17, 2007 02:52 PM

Heather the Realtor Orlando, Lake Mary

LemonTree Realty - Orlando, FL

First Time Home Buyers, Bank Owned Homes

Great post, I have a brochure for first time home buyers similiar to your post just a more condensed version, but thank you for sharing with the group.

Oct 18, 2007 12:25 PM

Heather- thanks for stopping by! I am actually putting this series together from a little inspiration from my oldest getting ready to buy in the next 6-9 months on his first home. Thinking this will help him and others that are first time buyers!!

Oct 19, 2007 05:22 AM

Tom Plant

WINEormous.com - Murrieta, CA

Candace - You do such great work. Your clients are so lucky to have you.

Oct 19, 2007 04:48 PM

Tom - Thank you for your vote of confidence!! I appreciate you stopping by, hope to see more of you.

Oct 21, 2007 05:21 AM

Before Your Search Begins - Basics of Home Buying

Comments(13)

Arizona Real Estate Associate Broker

Service Areas

Real Estate Resources

Recent Posts

Additional Information