How to buy a house?

Question

Can someone tell me the steps to purchasing a house then selling it? It would help alot!!! And where should i start?

Answer 1

The first thing you need to know is if you are ready for the responsibility of a house. When I bought my first house, i didn't realize the amount of lifestyle change it involved. Everything from making repairs to routine maintenance. My landlords always handled that stuff, so it was a big change. Assuming you are past this then proceed.

1. Know how much you can afford. The old-school benchmark is you can afford a house payment that is 25% or less of your monthly take-home pay. Lenders will loan you a lot more than that, so don't trust them to determine how much you can afford. You have to make the payments, so its ultimately your job to evaluate this.

2. Next get pre-approved for a mortgage at a great interest rate. Most people call a Realtor first, but really they should do get approved for financing first. Realtors are often forced by their offices to refer you to a specific in-house mortgage broker. You will almost NEVER get the best rate and terms with the in-house lender.

3. Interview several Realtors, and beware! As a first-time home buyer you are a 'mark'. As a virgin to the pitfalls of this process they see you coming...and you don't understand the mess some of these people will kindly guide you into. It will not hurt you to read a book or two about this entire process. NEVER work with a Realtor who will not explain the process, and teach you every step of the way. If they start talking-down to you, you need a new Realtor.

4. Next you'll start shopping for houses in your price range. Carry a big bright flashlight so you can look in dark corners, and behind the furnace, etc. You'll see a lot of flaws that would not otherwise show.

5. Once you found a house your Realtor will assist you with the negotiation, inspection, and appraisal process.


Selling the house, once again you'll need a decent Realtor to help you. A good Realtor will always get more for your house than you can get through For Sale By Owner.

1. Interview several Realtors. You need to work with a Realtor who is professional enough to tell you the kinds of things you really don't like to hear. Things like the wall color in the kids rooms are awful, etc.

2. Your Realtor will give you an estimated market price for your home as well as an Estimated Proceeds worksheet to tell you how much you'll get for the house after fees, etc.

3. The Realtor will list the house, and if they are worth anything they will take numerous pictures of the house. They will take the time to write detailed descriptions of the house and the property.

4. A lot of people think an Open House is a good way to get your property sold. Open Houses usually don't do anything, it's mostly a last ditch attempt to get traffic in before the owner needs to drop the price. It's not necessarily bad to have an Open House, it just doesn't do much to sell the property.

5. Once an offer comes in your Realtor will help you negotiate it into a sale.

Answer 2

Simple: start with a mortgage broker. They will take a look at your finances and let you know how much you can afford, then pre-approve you for that amount. They will give you a letter stating this amount which isn't an official guarantee, but let's you know where you should start.

Next, find a buyer's agent. They should be trained and licensed and will be able to explain to you the ins and outs of buying a house. They'll be able to explain a lot of the local considerations and will help narrow your search based on what you think you want in a house. They'll then show you listings of houses from the multi-list. They are also required by law to work for you. They do not charge you, but rather take a chunk of the commission paid by the seller.

A few other notes: never, EVER call the name listed on the for sale sign in front of the house. That person works for the seller and only the seller - they will try to get the most out of you for buying that house.

For far more information, read Tips And Traps When Buying A Home by Robert Irwin. This is a very clear and concise book about many of the options in financing and things to look out for when looking for a home. It saved me thousands of dollars easily!

Answer 3

You would need to get qualified first. Lenders look at 2 yrs job time, income, rental history. You will need 2004 and 2005 W2's (not your full taxes, but the W2's). If you go thru a Realtor, than the realtor will work with your Lender or Broker, if a For Sale By Owner, than you will work with the seller and Lender (and leave out the realtor). I do many for sale by owners, and it is easy to do, and the seller is willing to help you with closing costs.

The Mortgage Broker and their processor will order title on the property, order a ALT 9 survey, order the appraisal (has to be paid at the door by the buyer) unless the seller wants to pay for it. Payoffs are ordered on the current mortgage, and int he back ground, the Broker/Processor is verifying all the information the the loan application, like job time, rental history with a VOE and VOM (Verification of Employment, and Verification of Rent/Mortgage)

The tile and appraisal is what takes the longest, so these need to be ordered as soon as possible.

Now, if your middle credit score is 580+ than you can get 100 percent financing. But if you can put down 5 percent or even 10 percent your interest rate is much better. If you go FHA or Conforming you will have MI insurance added onto your loan. VA loans do not have MI insurance. But, you could a 100 percent 1 loan , with a added .25 to the rate and not have MI insurance. That is a option for you too. In the process of buying a home, you will have to pay for the appraisal up front, closing cost associated with your loan (unless the seller is willing to help you with cc of up to 6 percent), and you will need to pay for 1 year Home Owners Insurance Policy on the new property. Unless the home comes with a washer and dryer, stove and ref, you will need to buy them also. So make sure you keep enough to purchase the items you will need for your new home.

Rates are still fantastic - work with a mortgage broker, one that can underwrite for many companies. That way the companies he/she works with will go off his credit report, and not have to re-pull your credit.

As I mentioned: Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) FHA/VA approved too. If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.

By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realtor, and the seller has to pay the realtor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far?? You may find a For Sale By Owner, they are sometimes more willing to help you with closing cost(s) associated with your loan, since there is no realtor fees.

As I mentioned to you, Good Luck - the Loan Process can be fun - at least I love being a Broker, getting to help my clients is rewarding to me. Find a Broker who cares and will go over the full loan process with you and be in contact with you daily. The one on one customer service is important, to you, the client, to let you know the whole loan process.

Answer 4

Too much information to even begin. Go and find yourself a Realtor (preferably from a referral--any of us can provide you with one). Learn from them as they assist you in buying a home. Then have one help you sell. Consider it a paid education. Best of luck.

Answer 5

get pre-qualified to find out what you might be able to afford??
you know your buying power,then go to open houses and look to see what is out there.. go with friends and family who have made home purchases, to give you their opinions from purchasing, home improvements,etc.... there is a lot to it-buying a house,but this is just a starter...

Answer 6

here is some articles you can read on my website:

http://www.estates.la/Real_Estate_Reports.htm