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10 Steps for First Time Home Buyers to Follow

Couple being handed the keys to their home.
Looking for a new house can be a challenging and exciting experience. It is also a complicated and long process. At the same time, it requires a lot of effort and time. People who are purchasing a home for the first time can often be a bit intimidated.
There are also steps that they can follow to achieve their goal efficiently and quickly.

First Step: Find Out the Amount of Money That Can Be Borrowed

Before purchasing a home, people should call a mortgage broker. This will help them get a better idea of how much they can borrow. They should also search the market thoroughly to find the best available deals. It also helps them maximize their borrowing power. Every bank and lender offer different rates, terms and fees. Shop around. Once you have locked in financing, your home search can begin.

Second Step: Define the Criteria

Consider what amenities you want in the location where you want to live. This includes the presence of shops and exemplary schools.  It is also important for buyers to decide what they are looking for in a property. This includes the number of rooms, amenities and lot size. If it is a condo or townhome, they need to ask about high HOA fees.  Also important to  consider is resale value.

Third Step: Start the Search

People can then start looking for the property they want to purchase. This is done by scanning the Internet at sites such as REALTOR.com or even here! They should also register with a real estate agent and go over what they are looking for because the agent may have something he/she has already seen in mind.

Fourth Step: Out and About

Make sure to only look at homes in your price range.  If you start looking at home more expensive, none of the less expensive homes will look any good in comparison.  Keep it in perspective. They must not get tempted into going over their budget. This is why it is important to wait until finding the right place now, and over time, moving up the property latter.

Fifth Step: Make an Offer

When they find the property that they want, people can make an offer. However, they should try to find out as much information as they can about the property itself before doing so. This is best done with help from the real estate agent. They must also ask how long the real estate has been on the market or if there are currently any offers on the property.

Sixth Step: Negotiating

Now the negotiating begins. This will help them find a price that satisfies all parties involved. They may also want to offer the full amount right away. This is generally only a good idea if they have found a property that they really like and want to make sure they can buy it before someone else does.

Seventh Step: Acceptance

If the offer is accepted, Celebrate!!  But not so fast, because we have a long way to go until closing and everything must go just right to have a smooth process.  It is time to sign the contract. At that point, buyers must also hand over the earnest money deposit. This payment is usually 1 percent of the house’s price.

Eighth Step: Submit a Mortgage Application

After signing the contract, people must then submit their mortgage application and officially start the loan process. This is usually presented along with documentation lender is requesting from buyer. They must also also get their lenders to lock in their rates until closing.

Ninth Step:  Inspection

Remember to schedule an inspection early because if inspector sees a red flag, he is not the expert.  You will have to schedule a plumber, or ac guy, to get the full story of the issue.  Typically you will only have a certain number of days to get all your inspections done.

Tenth Step:  Sign the Papers

Once the loan is approved and out of underwriting, it is time to finalize the deal. You will get the exact amount needed to close typically 24 hours before closing once HUD statement is finalized.
It is very easy to purchase a house.  However, people must remember one thing. They must get qualified in order to start the process. They will waste a lot of time, money, and effort if you do this after finding a home they love.  After getting qualified, they can visit websites such as http://reinvestdfw.com/ to get help with their next step.
by DAN CAMPANELLA, Broker/Owner @ R.E.INVEST Brokerage, LLC. on February 21st, 2013.


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