Do you remember how you felt when you bought your first home? Please send me over your story; I’d love to hear it!
This couple dreamed of the day they would finally move into their first home with their four children. Finding an affordable home in the suburbs of Chicago on a Youth Pastor’s salary is no easy task. Fast forward to closing day; the grateful look on their faces says it all!
My husband, Tye, and I bought our first home in 2005, and I remember it like it was yesterday. A small 2 bedroom townhome in Plainfield weeks after our wedding…but to us it felt like we were moving into a mansion in Beverly Hills.
The entire buying process can be intimidating; being a former teacher, I love taking the time to educate people on the home buying process. It is important that my clients feel knowledgeable about what they can expect throughout the transaction. I never want the complexities of the process to steal the joy of buying a first home.
If you know anyone who is considering buying a home it would be an honor to help them.
Sincerely,
Linda Fox – contact information under Contact Me.
(I love working with home buyers, especially first time home buyers! I think they went a little light on the last step, but it is a good summary.)
Find out how much you can afford.
Before your first steps to buying a new home, your mortgage lender will look at a couple different numbers to find out your spending limit. The first figure is your take-home pay. Banks like to follow the 28/36 rule: Your monthly mortgage payments should total no more than 28 percent of your net paycheck, and your total debts, including car payments and student loans, shouldn’t inch over 36 percent.
Get preapproved for a loan.
For a small fee, a lender will contact your employer, bank, and others to verify your income, assets, debts, and credit history. You’ll then get a letter stating that your mortgage is approved for a certain amount (which will help you determine your price limit!) up until a certain date. This document is more for the home seller’s benefit to prove that you’re a serious buyer. There’s no obligation on your part to actually get a mortgage.
Start searching for new digs.
A good way to start is to look at advertisements of homes located in neighborhoods you might want to check out. Then see who the listing agent is — chances are that company does a decent amount of business in the neighborhoods you’re interested in. Also use our finding a home tool.
Make an offer.
Do your own research in your local paper, office of public records, or Zillow to find out what similar homes in the area have recently sold for. Choose a number for your initial offer. If it’s far below the asking price, be prepared to defend it with your research. Don’t let your real estate agent pressure you into making the first number any higher than you’re comfortable with.
Settle on a price.
The seller will respond in one of three ways: an acceptance, a counter-bid (giving you a number somewhere between your offer and the asking price), or declining by sticking to their original asking price. Find out why the sellers are digging in their heels. If you can agree on a number, you’ll sign a contract and be asked to put down a “binder” or “earnest money.” Make sure the contract specifies that you can get this money back if you withdraw your offer.
Get an inspection.
Ask a realtor to recommend a certified inspector or check out the American Society of Home Inspectors. Have our home inspection checklist handy.
Close the deal.
Once the inspection is done, you’ll need to contact your lender and hire a lawyer to set up a closing date. Go buy some champagne and celebrate!
via 7 Steps to Buying a House – Buying a Home – Real Estate.
10 homes first-time buyers should avoidFrom hidden damage to crummy neighbors, beware these 10 signs that your dream home may turn into a nightmare — before you sign the contract.
Youve scraped together a down payment, with just enough money left over to pay closing costs. What youre unlikely to have, as a first-time homebuyer, is a big pot of cash to pay for repairs — or a clear understanding of how much certain home flaws can cost you down the road.With that in mind, I consulted with appraisers and inspectors from across the country to uncover the major home problems first-time homebuyers should watch out for and avoid.Novices should be particularly cautious about “bargain” homes, according to appraiser Dan Fries, of Daniel Fries & Associates in Cumming, Ga. They may come with problems that are expensive to repair or impossible to fix.”Avoid the killer deal, as the chances are good there is some issue that made the other owner walk,” said Fries. “Buying a dog of a house will always be less desirable than the cream puff with a good location.”Read on for some of the bigger issues of which to beware.
via 10 homes first-time buyers should avoid – housing & buying guide – MSN Money.
By Liz Weston, MSN MoneyShare
