what are the steps to buying a new house?

Question

can you list them in 1,2,3 order? do i contact a realtor first or what when i decide on a house? and is there interest in a mortgage?

Answer 1

i am a realtor,so i would suggest contacting a realtor,then apply for credit to see how much of a house you can afford,your realtor can probably hook you up with a lender,then she/he can help you find the house you are dreaming of,yes there is always interest on a mortgage.

Answer 2

I recommend a realtor. They do more than show you houses. They can help you make a more informed choice. Also, they can smooth the way through the entire process and make the purchase happen when otherwise it might not have. They're the experts.

So the first step is to find a realtor. Ask for referrals. If you know someone who has bought or sold a home recently in the area you want to live, ask them who they used and if they were happy.

You *can* just walk into (or call) a local realty office. You'll get someone. That someone is probably good at his or her job, but you never know.

Once you have a realtor, you'll want to get a feel for the type of house you want. A good realtor will help with this.

You also will want the realtor to set you up to be pre-approved (not pre-qualified, you want to actually be pre-approved) for a loan. This will tell you exactly how much you can buy. I recommend staying under this amount, because a huge mortgage isn't any fun.

After that, basically let the experts do their jobs. Your realtor will walk you through the entire process.

Make sure you get a house inspection by a professional inspector. If the seller won't agree to one, then don't buy the house -- the seller would only disallow an inspection if he knows something horrible is wrong with the house. Never buy a house that hasn't had a formal inspection by a professional inspector.

And you can trust the inspector, because he knows you'll sue him for damages if he misses something expensive that he should have caught.

Answer 3

Hi,

First, get pre-qualified with a lender. If the lender is any good, they will know all the programs that you can qualify for as a first time homebuyer. The lender should also tell you what kind of interest rates are available for your situation. It doesn't make sense to look without knowing how much you can afford.

Second, once you are pre-qualifed then start looking through the local papers and on the internet in your price range. It may be at this point that you want to contact a realtor so you can see the homes.

Third, make an offer. This is where your realtor can really help you out. They will know the market conditions really well and they will know if you can offer less than the list price.

Fourth, move in.

That is the process in the most basic of terms. There are a few glitches you may encounter along the way, but a good lender and a good realtor will get you through all of it.


Good Luck

Answer 4

1. Get your credit report, check it for errors carefully. Clear up any discrepancies, pay off any unpaid bills. If you need to contact any collection agencies to pay these overdue bills, make sure to get a letter of payment confirmation.
2. Analyze your financial situation. What I mean is decide how much money you can afford to spend each month on your mortgage. Your mortgage should be no more than roughly 25% - 30% of your monthly income. Ex. monthly income (take home pay)of $2800, your mortgage should not exceed $850 per month. Don't forget to include taxes and interest. Most mortgage websites offer a mortgage calculator. Then figure the rest of your utilities(gas, electric), food and other monthly expenses (car payment, etc.) Figure how much of a down payment you can make. DO NOT use all of your savings for the down payment. (if one is required). This will depend on the type of mortgage you apply for. ( FHA, HUD, first time buyers, etc) Do some research on these.
3. Contact your bank/lending institution to see how much of a mortgage you qualify for. Some banks will do this for free. Also check local interest rates. They will vary from bank to bank, but your credit score will make a difference. The better your credit score (higher is better) the better your interest rate should be.
4. Start searching for your new home. When you find some in your price range, call the realtor or owner for a walk through. Check for things that may need repair (broken windows, screens, exposed wiring). Ask questions right then and there. What appliances and fixtures come with the house? When, if ever, was the wiring updated? When was the water heater/ furnace installed or last cleaned, inspected? Check plumbing by running water in kitchen sink, bathrooms, etc. How old is the roof?
Most states require an inspector to come in and inspect the property befor you buy, usually at the buyers (your) expense. You should get a report from the inspector.He/she will normally check the foundation, plumbing, electrical, furnace, roof) This should be in his/her report.
5. Once you find the house you want, make an offer you can live with, taking into account anything in the inspectors report that will cost you money to fix or replace. Once a deal is reached, the realtor will set up a time and place to do the paperwork and take possesion. Good Luck. Hope this helped you. I am not a realtor, but have been through this befor. Happy hunting!!

Answer 5

You can find a mortgage company/bank that will pre-qualify you, so you'll know how much house you can afford.

Contact a broker in the area and look at ads in the paper that show some of the properties that are for sale. These days they can show properties online first to see if you have interest. If you see something you're interested in you go see it in person. If you like it you tell the broker you will make an offer. The broker will later pass the offer on to the sellers, and then contact you if they accept it.

It is possible you may see something you want fixed, so you make your offer and specify to the broker that you want that thing fixed as part of the deal (for example, a septic tank problem or damage to the roof, etc.)

When the seller accepts the offer you will likely sign a purchase and sale agreement and put a small deposit down. This is done when you haven't been pre-qualified and the purchase-and-sale agreement says you'll buy the house provided you get financing. If you're pre-qualified there may still be a purchase-and-sale agreement until the financing comes through. In any event, there is the time period between saying you want the house, putting a deposit down, and waiting to pass papers. You don't own the house until you pass papers.

This is when the buyer, seller, bank attorneys, and broker sit down and pass checks back and forth and eventually give you the key to the house. After passing papers the house is yours.

Interest on the mortage? Yes. There is a lot of interest on a mortage, but its how its done. Ideally, you aim to get a "fixed mortage" at as low an interest rate as possible because that will mean your mortgage payments will stay the same for as long as you have the mortgage (which could be 20 years or so).

The is what is called a "variable rate mortgage", but this is risky because people get a mortgage at a low interest rate; but when interest rates go up people sometimes can't keep their homes because the monthly payments get too high.

Much of your monthly mortgage payment will go toward interest, but again, its how its done.

Note: Although the broker works for the seller and not you, part of what the broker can do is tell you how to get financing or get pre-qualified for financing.

Answer 6

If you don't know anything about it a realtor would be best.
Be very careful of what you sign, realtors can be as bad as anyone else. Do not let anyone push you into anything you cannot afford, be careful of your neighborhoods, life can be miserable living next to the wrong party, like having dog poop thrown into the swimming pool and non stop harrassment for kicks. It always best to buy a house that is a little underpriced so you can get rid of it if things do not work out, do not buy a house you canot get rid of. There is interest on a morgage
A Consumer's Guide To Mortgage Settlement Costs
Home Mortages: Understanding the Process
Consumer's Guide To Adjustable rate Mortgages, free copies can be had from the Board of Governors of the Federal Reserve System, www.federalreserve.gov/ 202-452-3245 The Federal Trade Commission also gives away free publications.
Sometimes the Government will pay for down payments and closing costs, especially for first time home buyers, see the National Association of Housing and Redevelopment.
Good luck

Answer 7

1. Contact a Realtor
Let him/her know you are a first time home-buyer, they will be able to give you names and numbers of lenders to work with.

2. Get Pre-Approved
Working with a mortgage broker or bank, get pre-approved and find how much you are eligible to spend. Keep in mind you will probably be approved for slightly more than what is really realistic for you. You will be responsible for closing costs in most situations -- keep that in mind. Your Realtor will be able to answer your concerns.

3. Get Back in Touch with your Realtor
Give him/her your criteria -- price range, areas your interested in, number of bedrooms -- anything else that's a must for you such as a garage, a backyard whatever is important.

4. The Realtor will pull listings for you, and let you know what is available and also monitor the market for you. Don't be afraid to look on your own too. When something strikes your fancy you can set up a showing with the Realtor to take a look. Don't rush on this shopping around process -- make sure you find the one that is for you.

5. Put in an offer on the house you want. The Realtor will guide you through this.

6. If your offer is accepted you will need to set up a closing, and then the house is yours.

Good Luck!

Answer 8

Purchase the following book:
http://search.barnesandnoble.com/booksearch/isbnInquiry.asp?z=y&endeca=1&isbn=1400081971&itm=2

Read it from cover to cover.
Next, make sure you have a good job, good credit history, money in the bank. Clean up any poor credit history.

Find a realtor who obeys your orders not the other way around. Find a mortgage broker who obeys your orders and not the other way around. Finally, you need a settlement company which won't nickel and dime you at the settlement table. All three entities may be interrelated - which can be a very good thing or a very bad thing. You are free to choose your own mortgage broker and settlement company but it never hurts to talk to the people recommended by the realtor.

You need to see houses that require little or no work and can be purchased for less than asking price - especially in slow markets when sellers are antsy to sell. Do not allow emotions to impact your decision - base your decision to offer a contract on the present condition of the property. If someone else wants to pay full price - let them.

Answer 9

1) Find out what you can afford. Review your financial situation with a reputable lender or loan broker. Get pre-qualified / pre-approved for a loan. Review your credit report so you can fix any errors now. (Your real estate agent will know reputable lenders)

2) Shop around to see what you can get in that price range. Consider areas which are undervalued. You will learn what is available and be able to recognize a good value when you see it. Avoid the emotional aspects of home buying and focus on the practical.

3) Get a reputable agent to help you with the home purchase. Some offer a rebate on their commission.

4) Place an offer on the home you intend to purchase. It is a serious commitment so make certain you understand the offer. Include some contingencies so you can back out, such as the home having structural problems or you not being able to get a suitable loan.

5) Apply for a loan. Get quotes from a couple lenders so you can compare.

6) Move in. Start saving for next year's property taxes. You can also deduct the mortgage interest on your taxes. Review the tax laws because you may be entitled to itemize your taxes and get additional deductions.

Good Luck,

Answer 10

Ask for your credit ratings from the credit bureaus, correct any discrepencies, have a current copy ready for the mortgage lenders.
Basically, if you are renting now, and the rent payments are a comfortable payment for you, base your search for a home on what that amount of rent will buy you in a home.
Another thing that new homeowners today need to think about is the closeness of the new house to your job. This didn't use to matter, and one looked to the surburbs and even the country as far as 75 miles out. With high gas prices, the closer you are to work, the more money you will have left over to spend each payday. Today an automobile will cost someone about double what their house note runs a month, with payments to the finance company, two to three tanks of gas a week, and insurance, tuneups, tires, etc. you are probably looking at $1000 to $1500 a month easy in auto upkeep. Public transportation, if available, can easily pay for a new home in savings.
Good luck with your finding a new home.
...jj

Answer 11

1) apply at a mortgage company or bank and ask them how much they would lend you toward a house. They will review your credit standing, your income, how much you owe, how you have paid your bills, how many credit cards you have, how many times people have inquired about your credit, if you have been late on any payments, and your ability to repay. Ask their rate of interest. Most realtors won't show you around unless they know how much money you have been approved for, and that they know you can place an adequate downpayment.

2) Once you have been approved you can go to a realtor (provide them a copy of the bank's approval letter) and ask them what's available in your area and they will show you homes on their computer, and you can choose which ones you want to see in person (a tour of the home). It is important that you ask what additional costs you will have to pay for. (flood insurance, home insurance, taxes, fees, road or water line updating, sidewalks, etc.)

If you can afford it, then move forward.
Do not get a mortgage that has a balloon payment.
Get a 30 year mortgage and ask the bank for your monthly payments to include PITI (principal, interest, taxes and insurance) flood insurance will not be included in the loan.

I am a licensed real estate agent