There are many people out there that see houses for sale and want to buy a home, but do not totally understand the process to obtain one. They call the Realtor whose home is for sale, but have no idea where to really begin.

The first thing a person needs to do is to obtain pre-approval.  This not only speeds up the process for the acquisition of the property, but also lets a person understand the amount of home that they can purchase. There is no sense for a person to look at a home for $500,000 when they can only obtain a home for $250,000. That way they do not fall in love with a house that they cannot afford to purchase.

Next, find a Realtor.  Feel free to shop around.  Find a Realtor that will listen to your needs and wants and show you the types of houses that you want to purchase and within your price range. There are lots of properties within all price ranges, so don't feel you have to stretch your budget to make a purchase.

Find a house.  Don't fall in love with a house.  Be willing to walk away from a house, if the bidding gets too high for it. This way you will be able to find another house that meets your needs without causing a payment that will destroy your lifestyle.

Finally,  understand the escrow process.  Read your loan paperwork.  Understand your Good Faith Estimate and do not accept a bait and switch if the loan company tries that. Consult your Realtor or an non-partisan loan expert if necessary.  Understand at the close of escrow that there are fees that need to be paid, called closing costs. Usually these fees are 3% of the price of the house. These fees will be shown on the escrow closing statement. 

If you still have questions about the process, ask your Realtor.  There is no such thing as a stupid question, when it comes to purchasing a home. All your questions need to be answered, so that you understand everything that is going on.  Make sure your questions are explained thoroughly so that it meets your satisfaction. Otherwise, look around for a different Realtor or loan agent.


Matthew Zgonc
www.buysellmodesto.com