My boyfriend and i are getting ready to buy a house. i am sooo confused about how it all works. we aren't going thru a realtor or anything. cna someone please in simple terms explain to me how it all works. & please explain mortgages, closing costs-all that. Please and thank you. Happy Thanksgiving!
2006-11-20 14:46:53 · 4 answers · asked by stazia81 2 in Business & Finance ➔ Renting & Real Estate
Start with an attorney. You're going to be making some legal promises that can last thirty years, you need someone that knows what they're doing who is on YOUR side, and no one else's.
You need to talk to mortgage brokers, figure out what price range you're looking in.
Then you need to find the house you want. Realtors are great for that, but if you don't use one, you still need to know what price range to shop for.
When you find it, you sign a contract. It says "On or about a date two months from now, I'm going to pay you X and you will give me a deed to the house, free and clear of all liens. This contract is void if the house is inspected and found to be in horrible structural condition." It'll run about five pages.
You get the house inspected to be sure the roof is solid, not just painted on, that kind of thing.
It gets appraised to be sure you didn't get conned on the value. Lenders don't like lending twice what the house is worth.
A date to Close is set, something agreeable to all parties and lawyers.
The lender sends your loan papers and the money to your lawyer.
Your lawyer explains what you're signing; pay attention to the Note, which is your promise to repay the loan, and the mortgage which says if you don't, they take the house, and even while you are paying you keep it insured and in decent shape, and pay the taxes, etc. Then he hands everyone their checks and it's your house.
You also will go through the "hud 1" or "settlement statement". That's where you see all the money in and out on the transaction. Closing costs are basically anything that has to be paid by you or the seller that isn't the price. Loan fees, attorney fees, conveyance taxes, appraisals, filing fees, final water bills.... anything.
Now, having said all that... you also need to have an iron clad contract with the boyfriend detailing what happens to the house and the payment if you split up. The courts won't be interested in helping you without a written contract.
2006-11-20 16:02:28 · answer #1 · answered by open4one 7 · 0⤊ 1⤋
Well this is how it works you first need to get qualified for a mortgage. You can do that at http://www.justgetaloan.net. Closing cost are a mix between stated mandated fee's, title cost (title insures their are no liens on the property that you would inherrit if you purchased it) and then whatever fee the bank or broker charges to do the loan. Also getting a real estate agent is not a bad idea especially if you are not very familiar with the process or with the seller. They will be able to help you with things like getting the seller to assist with closing cost, also negeotiating price because they will know information about houses in the area. Also you do not pay the real estate agent it comes from the seller. If you would like further assistance feel free to contact me direct at 866 530 7300 direct ext 7305 or by email jfreeman@justgetaloan.net
2006-11-21 11:07:40 · answer #2 · answered by Anonymous · 0⤊ 0⤋
pleazze get a 'dummies' book on home buying.
visit daveramsey.com to learn what the banks hope you never find out before you buy.
SECOND get a marriage license, get married.
Then you have legal safeties on this house else you can end up homeless bankrupt at his choice. plz no (oh not him). you need legal consul before buying a house with any not married person.
2006-11-21 00:02:23 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Contact someone qualified today so you can go house hunting tomorrow.
2006-11-21 13:51:00 · answer #4 · answered by CP 2 · 0⤊ 0⤋