If I want to buy a house, what should I do first?

Question

Do I go to a real estate agent? Do I go to a bank or mortgage company first? How do I find out about first time buyers benefits? Does it cost anything to get pre-qualified? What kind of money do I need up front? I've never bought a house before and have no idea where to start. Any suggestions?

I live in Michigan if it makes a difference.

Answer 1

Do I go to a real estate agent?

If you are buying new, don't bother with an agent. If you are looking for resale, might as well. Check out realty sellers dot com if you are in north america. They may give you a kickback on the commision.

Do I go to a bank or mortgage company first?

Yes. Get pre-approval first (costs nothing). They'll tell you how much they'ss give you for a new home.

How do I find out about first time buyers benefits?

Depends on where you live.

Does it cost anything to get pre-qualified?

No.

What kind of money do I need up front?

Depends on where you live. In Canada, you need 5% down (minimum) plus closing costs (~3%). If you put down less than 25% you will pay a mortgage insurance premium.

I've never bought a house before and have no idea where to start. Any suggestions?

Start with the bank to see how much $$$ you're dealing with.

Answer 2

This is a big step and the biggest investment you are going to make in your life.

1. First thing to do is see if you can afford a house. Not only mortgage payment but utility bills and other bills that come with the responsibility of own a home (taxes, insurance, repairs, trash, water, lawn or pool care) it all adds up...trust me.

2. Now if you can afford a house you have to know your credit history and overall your debit to income ratio. This means overall how much you owe in credit cards, car loans, student loan etc. Banks will see what this ratio is to see what you can afford.

3. Check on the interent with a mortgage calculator if you want to put any money down and if so how much and then see what a payment for a house would be..example $220,000 house with a 20,000 down payment will give you a monthly mortgage payment example.

4. Once you have any idea of what you can afford you can search the interent to find homes that are within your price range. See if at that price range, is it worth it or better yet see if you will be happy with the house at that price range.

5. If you are, then you can start by talking to bank to get a pre-approved for a home loan at a know price...don't go beyond what you think you can afford. Even if the bank approves you for more know your limits, remember a house payment can extend for 30 years.

6. Finally if you are pre-approved go to a agent. Do some research on the agents, find out how much they charge for there services, remember there are closing costs when buying a home so be prepared to cough up some of your own money to complete the transaction.

7. Lastly, make sure what you are buying is what you want, location, location. Yes it is a home but you want a home as an investment as well, so if you are not sure don't do it. Being a home owner is much more than it is cracked up to be, but under the right conditions there is nothing like owning your own home.

Answer 3

How much of a mortage can you afford? Include real estate taxes, insurance in that amount.

What is your credit rating like? Check the 3 services out and make sure they have all clean reports on you first before you apply for any loans.

NEVER PAY A FEE TO GET QUALIFIED.

You should be able to put at least 5% down and 5% for closing costs. Also you need money to move in and pay for the incidental expenses.

If the house is used GET IT INSPECTED BY A HOME INSPECTOR AND INSECT INSPECTOR. You do not need to find out next summer you need a new roof or the termintes ate out the back of the house.

Your mortage payment should be no more thant 25% of your gross pay and your total mortage and credit card and auto payments should be no more than 33% of your gross pay. If you do not meet these guidelines then you will have a high interest rate and will be at a serious risk of foreclosure.

Buy what you can afford now, trade up later.

The realtor works for the SELLER NOT FOR YOU! The seller is paying his commission not you!

Talk to friends and family about dealing with a realtor and interview at least 3, if they do not understand what you are looking for do not go with them.

Answer 4

Get a Real Estate Agent. Preferably an Accredited Buyer Representative. Interview him/her and see if you can work togerther. Then follow STEP by STEP the directions they give you. The next step should be to get "pre-approved" by a bank or mortgae co. Hiring an Agent costs nothing and the "pre-approval letter" should also cost nothing. Don't listen to friends and neighbors. The professionals are up-to-date on the process. That is what they do for a living. Good Luck

Answer 5

Go to a mortgage company first and foremost. Real estate agents can show you as many beautiful homes as you want to see, but if you can't qualify for the loan it won't matter!

It does not cost you anything to get pre-qualified, and depending on your situation, you may be able to finance the home with zero down.

Answer 6

I just bought my first home and I got Pre-Approved for a mortgage first (pre-approved different than qualified, it means you already have a mortgage but waiting on a home) That way you have the ball in your court if you have a bidding war on a home. You should consider having 3% down but some mortgages can be 100% financed (this does not include closing costs that can run 6K but you can leverage with the seller especially if it is a new construction) Good Luck

Answer 7

At least you know there is a lot involved in buying a home. Let's see.... well, I would get pre-qualified first so that you can see how much you can actually afford. Agents prefer you to be pre-qualified so that they aren't "wasting their time." The lender will give you information about first-time home buyer options. Also, if you go to City Hall you can find out about available grants.

Foreclosure.com has a lot of articles you can use as reference.

Answer 8

I say you need to talk to a mortgage broker so he/she cansit down with you and go over your finances to see how much you can afford to borrow. Onceyou feel comfortable with your buying power, it'stime to get with a real estate agent and look for the best possible deal in your price range.

If you're in Southern California, I can help. Also, my website has great info for people like you. Unfortunately, Yahoo thinks I am spamming when I list my website,so just look at my e-mail address for a clue. ;)

Regards.

Answer 9

I'm a Realtor in las Vegas. The first thing you shoud do is find a lender you trust and get yourself pre-approved. Find out what you can afford before you go shopping. Many Realtors will try to sell you more than you can afford. Then interview Realtors, one way to do it is by stopping at open houses and just talking with them, that way they don't have to come to your house. Another way is to call them and have them come to your house, make it clear that you are interviewing several Realtors and you will call them back when you make a decision.. Good Luck

Answer 10

A real estate agent will run your credit and determine what kind of home you can look for. Bear in mind that they will most likely approve you for more than they should. While it's true that you might be able to afford a home for (say) $300,000, you might have to scrape every penny and eliminate vacations, etc. to make it a reality.

Just going around to look at houses is free and you pick up a lot as you go along. I would recommend that before you start seriously looking, just make an appointment with a real estate agent to check out homes, etc. before you head out, they'll run your credit to determine what is worth showing you.

Also keep in mind that property taxes, homeowners insurance, PMI and escrow can cost about 80% as much as principle and interest.