So, you're wondering where to begin when buying a home?

So, you are in the market to buy a home, and are wondering where to begin, huh? The first thing you should do is contact a lender to get "Pre-Qualified".

     This is a process where you decide the price range in which you will be looking.

Lenders look at three main factors to determine the price range. First, they consider your "Debt Ratios" which includes the ratio including the payment of your home, and your ratio before the home payment. These ratios can be worked around provided you are covered in the other areas. Second, they take a peek at your credit score.  As you know, this one really counts! As you might not be aware, it isn't the end of the world if you have a few problems! Third, they look at the "Down Payment" that you are able to make.

     I encourage you to shop around for the best rates as there are MANY choices out there. Just about every lender has different programs to choose from, depending on Credit, down-payment, and any number of factors ranging from "First time home buyers" to Government and other programs.  I, myself, have a list of lenders that do a very nice job. Contact either myself, or your Realtor, to get an idea on where to start.

     OK, you are pre-qualified; next you contact your agent! I strongly advise that you acquire a good agent, there is a great deal involved in a home sale, and there is much solace to be enjoyed if you have a capable agent watching out for you! There are many agents out there, some of which are very good at what they do; some prove that there should be a lifeguard at the gene pool! Some people want an agent that is very to the point. Some people want an agent that shares advice. There are all types out there, talk to some until you find the right one for you.

            Once you have found a home that you like, you will write the offer! A Purchase Agreement also includes the Escrow Instructions. These instruct the escrow officer as to which Title Company, Home Warranty, and other entities that are to be employed in your transaction. When you write the offer, you will also be asked how much of a "Deposit" you are going to put down. This deposit is generally held by the selling broker in a trust account and is counted towards, or subtracted from, the purchase price. This deposit is generally refundable if your escrow falls out for any reason EXCEPT for Buyer's default. That is, if a contingency is not met, then you would get your money back, but if you changed your mind about the property, the Seller would receive the deposit. There are many factors that need to be taken into account, talk with your agent about the earnest money deposit and the conditions that effect your transaction before you decide the amount thereof. It is a pretty sound idea to never put down what you cannot afford to lose. You never know what might come up in life, so always be careful when making any decisions!

            I will be covering several of these issues, plus many more, in future blogs. If you have any questions, feel free to contact myself, or your real estate professional. If you have questions about real estate, please email them to ron@ronbean.com, and I will try to address them in this forum. I also have a message board available at http://www.ronbean.com/ to answer any questions. I appreciate any and all comments!