Purchasing a home is the larges financial decision in most people's lives. It's use to a goal that can easily be reached if you work hard and take the right steps. For most it requires years of working and saving, finally purchasing your first home is a reward in and of itself, It can be a reward that keeps giving and may put you and your family on the path to financial security. However you need to do some home work before you begin looking for your dream home. You may need to buy what is known as a Starter Home and upgrade in a few years depending on your savings for the down payment. First things first.
- Get your credit in order. Find out your credit score rating at http://www.experian.com/. Know what your finance report says about you before applying for a loan. If it is not-perfect or good as you would hope work on cleaning it up, and improving your score since this is what a mortgage loan is largely based on.
- Find a good lender. You will need to research whether using a broker (who can really help if you have bad or so/so credit), or going directly to a bank or possible friend or family for a loan is the best route for you. If may need a Relative to CO-Sign if you have no credit.
- Have the loan officer give you a price range you know you can afford. Sometimes lenders will give you more money than you realistically can pay on a monthly income. Take the time to realistically sit down and make a budget of what you think mortgage, taxes, and the rest of the expenses will cost then raise this by 30%, and this should be your true budget. Before you start thinking, "I can have this house if I eat peanut butter and jelly sandwiches for a year", be realistic!
- Call A Realtor withyour list of needs and wants and have your agent prepare a list of available properties in the areas you would like to see. If you need help finding schools, shopping, demographics, entertainment and the like in a particular neighborhood, ask your Realtor to prepare a demographic report for the area - it will help you determine where the closest supermarket is, the movie theater, schools, businesses and even personal demographics of the residents. Schedule time to tour these properties. Don't take a quick look and move on to the next one. Your agent should point out special features or items that might need attention. Take a moment to imagine yourself living in this home. Ask yourself, what would it be like, am I comfortable here, can I see myself living here for a long time? Remember cosmetic things that can be easily changed. Buyers walk away from a property because it was poorly decorated or just needs paint. Picture the home with your furniture, family photos, mementos, etc. These are the things that make your house, a home, Be reasonable with your time on your tour - You should plan to see no more than 5 to 8 homes in a day. Give yourself time to absorb your observations a decide whether this property might be right for you.
- Be ready to write an offer. If you are in a Buyers market that is in your favor. You can usually get a good deal. However if you are in a sellers market you may need to write you offer NOW. Your agent will prepare all the paperwork and go over the terms with you. And for goodness sake, if you have a question, ASK!!! Don't sign an offer and then ask, "what does that mean?". Be prepared to submit an "earnest money" deposit.Yes MONEY! I This indicates that your are serious about buying a property, and a are ready, willing, & able to go through with the transaction.
- After your offer is presented to the seller, your agent will review with you the response. There are three possibilities; 1.) Acceptance 2.) Counter Offer 3.) Rejection. Once, the offer is accepted, its time to place money in escrow. The Escrow company will receive, hold and distribute all monies involved in the transation. After escrow account is opened and funded, now begins your contingency period and that starts on the day of acceptance, or date everyone agreed to all terms.
- The contingency period is the time allowed by your purchase agreement to obtain financing, perform inspections, and approve of various reports and disclosures.
- Home owner's insurance: You will nned to have your insurance representative make sure that you are fully covered when escrow closes. This is paid for the full year and must have proof of Insurance before closing.
- Closing time... When the conditions of the purchase agreement are met, you will sign your loan documents and closing papers or HUD statement - deposit the balance of your down payment, and closing costs and your lender will deposit the balance of the purchase price.The Title company or attorney will record the deed withthe County Recorder's office and you will be handed the keys to your new home. Your deed should arrive in approximately 6 weeks depending on the activity in the community. Do not forget to apply for Homestead Exemption. CONGRATULATIONS! You just purchased you first home.
Work with a Realtor you feel will best fit your family.
http://www.experian.com/ (credit rating)
I hope if you are a new home buyer this information will make the experience of finding a new home a pleasant one. If I can assist you in any way please call.
This information is useful information for Florida Home buyers. I am not an attorney. Before signing any thing consult an attorney.