First Time Home Buyer Information
Steps for Purchasing a Home – Mortgage Rates and Realtors
Nov 6, 2009
Buying a home for the first time can seem overwhelming. Following a step-by-step plan can make the task of buying a first home much easier and less stressful. There can also be tax credits as well as income tax advantages to buying a home. Read on to help plan a home purchase
First Step to Buying a Home
The very first step for buying a home is to find out how much the homebuyer qualifies for. Even before someone starts looking for a home, they should find out how much they can afford, otherwise looking for a home may be a waste of time. Visit a mortgage lending institution and get pre-qualified for a home loan. The mortgage servicer should be able to qualify someone up to a specific purchase price.
Shop Around for the Best Mortgage Rates
The homebuyer should shop around for the best mortgage rates. There can be a significant difference in loan rates and fees among home loan providers. There are also different types of financing to consider. The homebuyers may want to look at an FHA versus conventional loan and see what loan is best for them. Veterans may consider a VA home loan guaranty. There are also down payment considerations, which can vary between mortgage servicers.
Shopping for the Perfect Home
Once the future homeowner has secured a loan, the next step is to shop for a home. Make a list of the amenities that are needed in a home. Some of the amenities to consider are:
- Home size
- Number of bedrooms
- Number of bathrooms
- Size of the garage
- Heating and air conditioning
- Kitchen size and appliances
Once the amenities are listed, the next step is to find a real estate agent. If a particular neighborhood is desired, it’s best to find a realtor familiar with that particular neighborhood. Some other considerations when shopping for a home are school districts, property tax rates and crime rate statistics.
Making an Offer on a Home
Once the desired home is found, it’s time to make a purchase price offer. The offer should be carefully considered. If the offer is too low, the home may go to a higher bidder. Making too high of an offer may result in paying a higher price for the home. A professional realtor that’s familiar with the area should be able to give sound advice on the offer price.
After the offer is accepted, a professional home inspector should perform a home inspection. If the inspection comes back satisfactory, the next step is to sign the final paper work. If the home is financed, the final step is to shop for the best rate on homeowner’s insurance.
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