Ask as many questions as necessary to help you understand the entire home buying process. You are making a long-term commitment and spending a major amount of money–you’ll feel much better about the transaction if you stay informed and understand what’s happening every step along the way.<\/p>\n The specific way you progress through a home buying transaction varies depending on the real estate laws and customs where you live. But you will discover many steps to buying a house that are standard, even though they might not be accomplished in the same order in every location.<\/p>\n You’ll feel more confident about your home buying journey when you understand what is required of you and every other person who is involved in the transaction. This guide takes you through it, and shows you that you’ve got only 11 steps to buying a house.<\/p>\n Your credit reports are an ongoing record of how you manage your finances. You must know exactly what your credit reports say about your financial history before you apply for a mortgage, because the reports play an important role in the mortgage approval process and in determining the interest rate and other loan terms that a lender offers you.<\/p>\n If you haven’t looked at your credit reports, you might be surprised at their contents, because errors are common. Ideally, you don’t want any late payments. One late pay is bad; four will kill you.<\/p>\n Therefore, first obtain a free copy of your credit report to ascertain your credit score and fully review each entry to check for accuracy. If you think there are errors within your report, contact the credit reporting agency and have them corrected. If your credit score is below 680, work on cleaning up your report and improving your score.<\/p>\n Finding the right loan and lender is crucial to your home buying success. It’s up to you to determine which lender is best for your needs and it’s always a good idea to have at least a bit of background about the loan process before you talk to a lender. Consider asking your real estate agent for a referral and feel free to ask them questions, such as:<\/p>\n a. Should I go through a mortgage broker or a bank loan officer? What\u2019s the difference?<\/p>\n b.What does debt to income ratio mean? Will this affect my interest rate?<\/p>\n c. Should I choose an adjustable rate mortgage or a fixed rate? What are the pros and cons?<\/p>\n d. Or should I choose an FHA loan? What is an FHA loan?<\/p>\n e. If you\u2019re a military veteran, ask about VA loans.<\/p>\n f. Should I buy discount points for my loan to lower the interest rate?<\/p>\n g. What is private mortgage insurance? Should I get it?<\/p>\n h. Will I have a mortgage or a deed of trust? What\u2019s the difference? Why does it matter?<\/p>\n Do you know how much house you can afford? Probably not, unless you’ve talked with a lender.<\/p>\n Pre-approval helps you in other ways. Consider this scenario. A home seller gets two similar offers. One is accompanied by a letter from the buyer’s bank that states she is pre-approved for a mortgage in the amount of the offer. The other has no supporting documents. Which offer do you think the seller will consider first? You\u2019re right! The buyer that\u2019s pre-approved.<\/p>\n Ask your real estate agent if you need a pre-qualification letter or a pre-approval letter to accompany your offer, and what\u2019s the difference between the two.<\/p>\n Also, use my Mortgage Calculating under Lending Tips to analyze your loan possibilities and to see what you\u2019re looking at as far as your monthly payment goes.<\/p>\n Buying a home isn’t as difficult as you might think, even if you’re short on funds, but the process will go a lot smoother if you get familiar with your real estate market and narrow down your wants and needs before you start looking at houses.<\/p>\n For starters, figure out your Wants (swimming pool, single-story) from your Needs (neighborhood, school district). Next, consider resale potential and whether you need help with your down payment. If you don\u2019t have the down payment but can afford house payments, ask your real estate agent about HUD or seller down payment gift assistance.<\/p>\n Real estate agents represent buyers, sellers or both at the same time. It’s essential to understand agent duties and loyalties before you make that first phone call. Ask your agent to explain what their fiduciary duty is to you. Also consider:<\/p>\n a. How to go about hiring a buyer’s agent<\/p>\n b. Does your agent work for you or are they an independent contractor?<\/p>\n c. What you should expect from a buyer’s agent<\/p>\n d. How a buyer’s agent becomes a dual agent<\/p>\n e. Your duties to your agent<\/p>\n Your real estate agent will typically send house listings to your cellphone. You can also pick up\u00a0home sale\u00a0magazines and read classified ads in your local newspaper. You’ll probably spend an inordinate amount of time surfing the Internet for homes. You might even plan afternoon drives to preview neighborhoods. Those are all excellent ways to see what’s available. Here are some tools to help you narrow your home buying search.<\/p>\n a. Consider the houses that others overlook<\/p>\n b. Search public versions of multiple listing service web sites<\/p>\n c. Find real estate agent web sites<\/p>\n d. Browse real estate search engines and networks<\/p>\n e. Find for sale by owner properties<\/p>\n f. Find home sale ads in print<\/p>\n e. Find foreclosed homes<\/p>\n Deciding whether or not you want to buy a house involves not only looking at its location, but its structure and features; and there are many other considerations that are every bit as important to your purchase. Here are a few things you should explore before you make an offer.<\/p>\n a. Consider a home inspection<\/p>\n b. Check out the neighborhood at different times of the day<\/p>\n c. Talk to the neighbors<\/p>\n d. Check the comparable sales<\/p>\n Real estate laws, local customs and the mechanics of making an offer and its specific contingencies depend greatly on your location. However, there are some home buying tips that can help you fine-tune your offer, no matter where you live, and this is where a real estate agent is vitally important to you. Consider these items:<\/p>\n a. What comes with the house?<\/p>\n b. What should the seller disclose?<\/p>\n c. Determine if lead paint disclosures are required<\/p>\n d. Decide how much should you offer<\/p>\n e. Asking for possession before closing<\/p>\n f. Special considerations for For Sale By Owner purchases<\/p>\n In the state of CA, inspections take place after your offer is accepted by the seller. No matter when you do them, it’s critical to decide which inspections and tests you want to perform. Talk with your real estate agent or\u00a0other advisor\u00a0to find out when inspections should be handled and if additional types of testing are important for your specific area. Consider the following:<\/p>\n a. Ordering a full home inspection<\/p>\n b. Testing for radon gas<\/p>\n c. Looking for molds and mildew<\/p>\n d. Lead paint disclosures & inspections for pre-1978 homes<\/p>\n e. Is there a private well on the property?<\/p>\n f. Understanding and checking the septic system<\/p>\n g. Should you buy a home warranty?<\/p>\n As your closing date nears, everyone involved in your real estate transaction should check its progress on a daily basis, because staying on top of things means you’ll know immediately if there’s a problem that must be dealt with. Here’s a bit of information that focuses on a few common problems that home buyers must deal with before they close on a house.<\/p>\n a. Get the facts about residential appraisal methods<\/p>\n b. How to deal with a low appraisal<\/p>\n Most of your home buying problems are behind you now and you’re on your way to closing, also called settlement, the event that transfers ownership of the property to you. Just a few more things to learn, a few more things to do, and you’re there!<\/p>\n a. Get the facts about title insurance<\/p>\n b. Take your final walk-through<\/p> <\/div>\n<\/div>\n\n\t <\/div>\n\t \t<\/div>\n\t\t <\/div>\n\t \n\t<\/div>\n\t\n\t<\/div>\n\n","protected":false},"excerpt":{"rendered":" The steps outlined in this blog are a general home buying guide. You will encounter issues specific to your location and your transaction, issues that can best be explained and handled by a local real estate agent, your lender, your\u00a0escrow officer or others who are helping you complete your home buying transaction. Ask as many […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1159","post","type-post","status-publish","format-standard","hentry","category-uncategorized","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"builder_content":" Ask as many questions as necessary to help you understand the entire home buying process. You are making a long-term commitment and spending a major amount of money--you'll feel much better about the transaction if you stay informed and understand what's happening every step along the way.<\/p> The specific way you progress through a home buying transaction varies depending on the real estate laws and customs where you live. But you will discover many steps to buying a house that are standard, even though they might not be accomplished in the same order in every location.<\/p> You'll feel more confident about your home buying journey when you understand what is required of you and every other person who is involved in the transaction. This guide takes you through it, and shows you that you've got only 11 steps to buying a house.<\/p> Your credit reports are an ongoing record of how you manage your finances. You must know exactly what your credit reports say about your financial history before you apply for a mortgage, because the reports play an important role in the mortgage approval process and in determining the interest rate and other loan terms that a lender offers you.<\/p> If you haven't looked at your credit reports, you might be surprised at their contents, because errors are common. Ideally, you don't want any late payments. One late pay is bad; four will kill you.<\/p> Therefore, first obtain a free copy of your credit report to ascertain your credit score and fully review each entry to check for accuracy. If you think there are errors within your report, contact the credit reporting agency and have them corrected. If your credit score is below 680, work on cleaning up your report and improving your score.<\/p> Finding the right loan and lender is crucial to your home buying success. It's up to you to determine which lender is best for your needs and it's always a good idea to have at least a bit of background about the loan process before you talk to a lender. Consider asking your real estate agent for a referral and feel free to ask them questions, such as:<\/p> a. Should I go through a mortgage broker or a bank loan officer? What\u2019s the difference?<\/p> b.What does debt to income ratio mean? Will this affect my interest rate?<\/p> c. Should I choose an adjustable rate mortgage or a fixed rate? What are the pros and cons?<\/p> d. Or should I choose an FHA loan? What is an FHA loan?<\/p> e. If you\u2019re a military veteran, ask about VA loans.<\/p> f. Should I buy discount points for my loan to lower the interest rate?<\/p> g. What is private mortgage insurance? Should I get it?<\/p> h. Will I have a mortgage or a deed of trust? What\u2019s the difference? Why does it matter?<\/p> Do you know how much house you can afford? Probably not, unless you've talked with a lender.<\/p> Pre-approval helps you in other ways. Consider this scenario. A home seller gets two similar offers. One is accompanied by a letter from the buyer's bank that states she is pre-approved for a mortgage in the amount of the offer. The other has no supporting documents. Which offer do you think the seller will consider first? You\u2019re right! The buyer that\u2019s pre-approved.<\/p> Ask your real estate agent if you need a pre-qualification letter or a pre-approval letter to accompany your offer, and what\u2019s the difference between the two.<\/p> Also, use my Mortgage Calculating under Lending Tips to analyze your loan possibilities and to see what you\u2019re looking at as far as your monthly payment goes.<\/p> Buying a home isn't as difficult as you might think, even if you're short on funds, but the process will go a lot smoother if you get familiar with your real estate market and narrow down your wants and needs before you start looking at houses.<\/p> For starters, figure out your Wants (swimming pool, single-story) from your Needs (neighborhood, school district). Next, consider resale potential and whether you need help with your down payment. If you don\u2019t have the down payment but can afford house payments, ask your real estate agent about HUD or seller down payment gift assistance.<\/p> Real estate agents represent buyers, sellers or both at the same time. It's essential to understand agent duties and loyalties before you make that first phone call. Ask your agent to explain what their fiduciary duty is to you. Also consider:<\/p> a. How to go about hiring a buyer's agent<\/p> b. Does your agent work for you or are they an independent contractor?<\/p> c. What you should expect from a buyer's agent<\/p> d. How a buyer's agent becomes a dual agent<\/p> e. Your duties to your agent<\/p> Your real estate agent will typically send house listings to your cellphone. You can also pick up\u00a0home sale\u00a0magazines and read classified ads in your local newspaper. You'll probably spend an inordinate amount of time surfing the Internet for homes. You might even plan afternoon drives to preview neighborhoods. Those are all excellent ways to see what's available. Here are some tools to help you narrow your home buying search.<\/p> a. Consider the houses that others overlook<\/p> b. Search public versions of multiple listing service web sites<\/p> c. Find real estate agent web sites<\/p> d. Browse real estate search engines and networks<\/p> e. Find for sale by owner properties<\/p> f. Find home sale ads in print<\/p> e. Find foreclosed homes<\/p> Deciding whether or not you want to buy a house involves not only looking at its location, but its structure and features; and there are many other considerations that are every bit as important to your purchase. Here are a few things you should explore before you make an offer.<\/p> a. Consider a home inspection<\/p> b. Check out the neighborhood at different times of the day<\/p> c. Talk to the neighbors<\/p> d. Check the comparable sales<\/p> Real estate laws, local customs and the mechanics of making an offer and its specific contingencies depend greatly on your location. However, there are some home buying tips that can help you fine-tune your offer, no matter where you live, and this is where a real estate agent is vitally important to you. Consider these items:<\/p> a. What comes with the house?<\/p> b. What should the seller disclose?<\/p> c. Determine if lead paint disclosures are required<\/p> d. Decide how much should you offer<\/p> e. Asking for possession before closing<\/p> f. Special considerations for For Sale By Owner purchases<\/p> In the state of CA, inspections take place after your offer is accepted by the seller. No matter when you do them, it's critical to decide which inspections and tests you want to perform. Talk with your real estate agent or\u00a0other advisor\u00a0to find out when inspections should be handled and if additional types of testing are important for your specific area. Consider the following:<\/p> a. Ordering a full home inspection<\/p> b. Testing for radon gas<\/p> c. Looking for molds and mildew<\/p> d. Lead paint disclosures & inspections for pre-1978 homes<\/p> e. Is there a private well on the property?<\/p> f. Understanding and checking the septic system<\/p> g. Should you buy a home warranty?<\/p> As your closing date nears, everyone involved in your real estate transaction should check its progress on a daily basis, because staying on top of things means you'll know immediately if there's a problem that must be dealt with. Here's a bit of information that focuses on a few common problems that home buyers must deal with before they close on a house.<\/p> a. Get the facts about residential appraisal methods<\/p> b. How to deal with a low appraisal<\/p> Most of your home buying problems are behind you now and you're on your way to closing, also called settlement, the event that transfers ownership of the property to you. Just a few more things to learn, a few more things to do, and you're there!<\/p> a. Get the facts about title insurance<\/p> b. Take your final walk-through<\/p>","_links":{"self":[{"href":"http:\/\/box5773.temp.domains\/~debbiey7\/wp-json\/wp\/v2\/posts\/1159","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/box5773.temp.domains\/~debbiey7\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/box5773.temp.domains\/~debbiey7\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/box5773.temp.domains\/~debbiey7\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/box5773.temp.domains\/~debbiey7\/wp-json\/wp\/v2\/comments?post=1159"}],"version-history":[{"count":79,"href":"http:\/\/box5773.temp.domains\/~debbiey7\/wp-json\/wp\/v2\/posts\/1159\/revisions"}],"predecessor-version":[{"id":1322,"href":"http:\/\/box5773.temp.domains\/~debbiey7\/wp-json\/wp\/v2\/posts\/1159\/revisions\/1322"}],"wp:attachment":[{"href":"http:\/\/box5773.temp.domains\/~debbiey7\/wp-json\/wp\/v2\/media?parent=1159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/box5773.temp.domains\/~debbiey7\/wp-json\/wp\/v2\/categories?post=1159"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/box5773.temp.domains\/~debbiey7\/wp-json\/wp\/v2\/tags?post=1159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"http:\/\/box5773.temp.domains\/~debbiey7\/wp-content\/uploads\/2019\/03\/Buyer-300x200.jpg\")
The steps outlined in this blog are a general home buying guide<\/strong>. You will encounter issues specific to your location and your transaction, issues that can best be explained and handled by a local real estate agent, your lender, your\u00a0escrow officer or others who are helping you complete your home buying transaction.<\/p>\n1. Get Your Finances in Order<\/strong><\/h3>\n
2. Get Familiar with the Mortgage Industry<\/strong><\/h3>\n
3. Get Pre-Approved for a Mortgage
![\"\"](\"http:\/\/box5773.temp.domains\/~debbiey7\/wp-content\/uploads\/2019\/03\/Buyer2-300x200.jpg\")
<\/strong><\/h3>\n4. Determine Your Wants and Needs<\/strong><\/h3>\n
5.\u00a0Learn to Work with Real Estate Agents<\/strong><\/h3>\n
![\"\"](\"http:\/\/box5773.temp.domains\/~debbiey7\/wp-content\/uploads\/2019\/03\/Buyer3-300x233.jpg\")
6. Start Searching for a Home<\/strong><\/h3>\n7. Handle Pre-Offer Tasks<\/strong><\/h3>\n
![\"\"](\"http:\/\/box5773.temp.domains\/~debbiey7\/wp-content\/uploads\/2019\/03\/Buyer4-300x199.jpg\")
8.\u00a0Make an Offer<\/strong><\/h3>\n9.\u00a0Home Inspections & Other Tests<\/strong><\/h3>\n
10.\u00a0Avoiding & Correcting Last Minute Problems<\/strong><\/h3>\n
11.\u00a0You’re on the Way to Closing
![\"\"](\"http:\/\/box5773.temp.domains\/~debbiey7\/wp-content\/uploads\/2019\/03\/Buyer5-300x200.jpg\")
<\/strong><\/h3>\nThe steps outlined in this blog are a general home buying guide<\/strong>. You will encounter issues specific to your location and your transaction, issues that can best be explained and handled by a local real estate agent, your lender, your\u00a0escrow officer or others who are helping you complete your home buying transaction.<\/p> 1. Get Your Finances in Order<\/strong><\/h3>
2. Get Familiar with the Mortgage Industry<\/strong><\/h3>
3. Get Pre-Approved for a Mortgage
<\/strong><\/h3> 4. Determine Your Wants and Needs<\/strong><\/h3>
5.\u00a0Learn to Work with Real Estate Agents<\/strong><\/h3>
6. Start Searching for a Home<\/strong><\/h3> 7. Handle Pre-Offer Tasks<\/strong><\/h3>
8.\u00a0Make an Offer<\/strong><\/h3> 9.\u00a0Home Inspections & Other Tests<\/strong><\/h3>
10.\u00a0Avoiding & Correcting Last Minute Problems<\/strong><\/h3>
11.\u00a0You're on the Way to Closing
<\/strong><\/h3>