Basics Of Home Buying

Basics Of Home Buying
The most important investment you will ever make is​ probably the purchase of​ a​ home .​
Finding the right home for you can be a​ long and arduous process, but there is​ no getting around that .​
Know Your Wants And Needs
Before embarking on your journey of​ house hunting, you must know what you really want to​ find .​
Sit down with pen and paper and list all the features you care most about, such as:
- Location (in a​ particular city, school district or​ neighborhood)
- Size -- how many bedrooms and bathrooms
- Parking -- a​ 1-car garage or​ 2?
- Style -- 2-story house or​ ranch style home?
- Heating -- central heating and/or air conditioning?
Equally important, on a​ new sheet of​ paper list all the features you absolutely do not want in​ a​ house .​
For example:
- high-traffic area.
- high noise area (airport, train station or​ highway in​ close proximity)
- maintenance -- major repairs needed
As you look at​ houses, keep both lists in​ mind .​
Your lists may change over time as​ you do more looking .​
You'll want to​ add or​ remove features, or​ perhaps you'll become willing to​ make compromises .​
Realize that you most likely will not find the perfect home .​
Experienced homebuyers will tell you, perfect homes are not found, they are made perfect through hard work.
Get Your Credit Report In Order
Prior to​ looking at​ properties, you must get your finances in​ order .​
This is​ the time to​ review your credit report and clean it​ up, if​ need be, to​ maximize your credit score .​
Many people do not realize how important it​ is​ to​ check your credit report periodically to​ make sure it​ is​ accurate .​
You should pay off any past due amounts, or​ negotiate a​ settlement price to​ close the debt .​
Get such agreements in​ writing, before paying any settlement .​
Keep all receipts for any settled items from your credit report since it​ may take months to​ get the debt actually removed.
Research Your Home-Buying Options
Decide what kind of​ property you are interested in .​
Do you want a​ HUD property, a​ foreclosure, real estate, or​ property for sale by owner?
A number of​ web sites list homes according to​ city, state, or​ price range .​
Visit these sites to​ see pictures of​ homes, many with virtual tours, and review the listing features .​
Get Pre-Approved For a​ Loan
You're ready now to​ find a​ lender and get yourself pre-approved for the loan .​
Being pre-approved offers a​ number of​ advantages .​
It will clarify the price range you can afford .​
Also, once you find the home you want, you can place an​ immediate offer .​
If you have to​ wait for pre-approval, someone could buy the house right out from under you .​
Several special programs are often available from lenders, such as​ the FHA or​ Ameri-Dream, that can save you money in​ the closing .​
Ask the lender about any special programs before you decide on a​ loan .​
Find a​ Good Real Estate Agent
It is​ wise for the first time homebuyer to​ work closely with a​ real estate agent, no matter what type of​ property you're looking for .​
a​ knowledgeable real estate agent will make your house-hunting much easier .​
a​ good real estate agent is​ usually a​ good negotiator, and will be able to​ help you with the complicated paperwork involved in​ placing an​ offer on a​ house or​ in​ closing a​ deal .​
It's essential that you have a​ real estate agent working for you as​ the buyer, rather than relying on the seller's agent for the house you want to​ buy .​
The latter can involve a​ conflict of​ interest, which usually works to​ your disadvantage .​
To select a​ real estate agent, you should check with your friends and neighbors for recommendations .​
Find an​ agent you feel comfortable with and who is​ knowledgeable about the area you hope to​ buy in .​
These are just the basics of​ home buying .​
You will find many details you need to​ master as​ you move through the buying process, but having these basics under your belt will give you a​ head start.

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