I am totally lost. I need the steps that I need to take to buy a house. Starting with the first...?

Question

I am looking to eventually buy a house with my fiance, I am totally clueless about the whole situation. I know how much we can afford, but where do I go, who do I talk to, etc?

Answer 1

Depends on how quickly you want to buy a house. Consider where to start in this timeline:

If you have bad credit or not-so-good credit (basically 640 or below - which is important if you want a lower interest rate):

One Year from Now: Over the next year, pay all your minimums on time. This will improve the credit grade a mortgage company would give you . They mainly look at the payment history over the last year.

30 Days from Now: Get your 3 in 1 credit report (with scores) from www.transunion.com or www.equifax.com. You can see if there is anything bad on your credit report. Dispute everything that is bad by saying it's not yours or that it was never late. The TRW companies will submit a dispute to the credit companies and within 30 days, you can raise your credit score as much as 200 points (believe me, I've done it).

If you have good credit (640 and up):

Go to a mortgage company and submit an application. Most likely, you know someone who is a mortgage broker, and a broker will submit your loan to a ton of companies. If you don't know anyone, try www.lendingtree.com. They actually do get competitors to fight over you, but you will end up getting swamped with phone calls. A mortgage broker is easier.

Once you have your pre-approval letter, go to a real estate agent and began looking for homes in your price range.

Once you find a home, submit an offer. Consider asking for money back for fees, that way you will have to come up with less on closing day. The average closing costs are 3-5% of the purchase price, and this is above and beyond what you are putting down as a deposit.

During the Escrow Period (about 30 to 90 Days depending on what you specified in the contract): Definitely get a termite inspection (which I believe is required by law everywhere), a home inspection (somewhat expensive, but having it means you can ask for even more money off the purchase price after you have agreed upon the price), and a home warranty. The home warranty will be a life saver after you move in because they will fix anything that goes wrong within the first year...and there is always something.

Basically, get all the paperwork together the loan company wants...a very stressful time, but so worth it when you are done.

Closing Day: You will go in and sign the paperwork and give the rest of your deposit, plus whatever extra fees there are. And there are always extra fees. At this time, the loan may not be what you thought it was going to be, so pay attention when you are signing.

Five Days after closing day (give or take): You will get the keys and get to move in. It generally takes 2 days after closing for the loan to fund and the property to be recorded in your name. Sometimes, depending on the bank, it will take even longer. Just be patient and expect that it will take about five days after you sign to get it. Anything less will feel like a blessing...otherwise you will stress out. Good luck.

Hope this helps.

Answer 2

1. Determine where you want to live. Location is the most important consideration.
2. Contact your bank or a mortgage broker to get pre qualified for a mortgage. You can find out how much of a loan and what monthly payments you qualify for.
3. Determine what kind of home you want: single family, condo, townhouse, cooperative.
4. Go to any MLS realtor's web site. put in your criteria, and you will get a list of available properties that meet your needs.
5. Check classified ads in the daily newspapers. Look for homes with open house showing so you can go in and look around at your leisure.

Answer 3

Okay, you know what city you want to live....

1) First Step, drive around with your soon to be and look at neighborhoods, traffic conditions, locations of parks, stores and what not. In other words, figure out where you want to live.

2) Second, come up with a monthly budget, you need to figure in what the monthly outlay for a house will be. (Morgate payment, homeowners insurance, property taxes) If the monthly payment is 29% or less, and I suggest less, than what your total combined monthly income is than you should be good on being able to afford a house. Forget getting pre-approved or pre-qualified for a home loan. At this stage of your buying decision, it is a waste of time. Look, you do need to know what your credit score is and you do need to consider what the total of your monthly income vs. your total outlay for bills are. But, this isn't rocket science; it is actually pretty straightforward. The better your credit score and the fewer bills you have and you will be approved on a mortgage.

3) Consider the lifestyle change with owning a home. You do the maintaince, mow the yard, sweep the porch, call the plumber and so on. If you and your future spouse don't really feel you want to do this stuff, then continue to rent.

4) New Homes vs. Existing Homes............Basically, you normally end up with some sort of warranty on a new home. With new you won't have to consider things like shingle replacement and so on. But, you can get some really nice existing homes for the money. Consider a Saturday or Sunday drive through neighborhoods with you future in-laws, get them to pass along tidbits of advice about home ownership.

4) The old "starter home", don't buy too much house with it just being the two of you, yet give yourselves room to grow. Yeah, talk to your future hubby about kids, that will make his day!! Just kidding.

5) Realtors are in business; they make money off the sell of a home. 3% is what they look for as a base commission, if two realtors are involved than it's 6%. Nifty little game they have going on. Look at homes that are listed with a particular realtor, don't feel obligated to have several realtors showing you their realtor’s companies homes. $6000 vs. $12000 on a $200,000.00 home makes a lot of difference in the seller's mind when considering your offer.

5) Okay, now what everyone worries about, getting a loan. Look, banks are in business to loan money and make money with interests. Make them work for your business. As for all the different types of mortgages out there. Search them out on the net, read what the differences are, and then discuss with the lucky fellow which would fit your needs better. Be sure to consult family and friends as to what their opinions are. Remember, you are learning here, so take your time.

5) Always have a house inspected for faults. Most banks require this, so be there when it's being done. Gives you ideas for improvements or possible repairs down the road. Hint.....You pick the inspector, not the realtor.

Good Luck and Congratulations

Answer 4

First, get pre-approved for a mortgage...this will tell you exactly how much you can spend total on a new house. Then, go looking for the house of your dreams...pick an agent that will be representing YOU, not the one that is representing the house you want!! Put a bid on the house; then, get a home inspection (just in case there are major issues with electric or plumbing). After that it should be smooth sailing to the closing. Sign lots of paperwork and be in debt for years!!!

Answer 5

Get pre-approved (not pre-qualified) by a mortgage banker. If they want to charge you to do that, go elsewhere. It should be free.

Then talk to friends, relatives, and co-workers to get a reference to an experienced professional Realtor. They will arrange to show you homes. You probably don't need to sign a buyer's broker agreement wherein you agree to pay them. Your Realtor is usually paid from a percentage of what the seller pays their Realtor to sell the house. Give your Realtor a copy of the pre-approval letter you get from your lender.
Work closely with your loan officer and your Reraltor until you find what you want. They are your team members and will work on your behalf.

Be wary of the sharks and spammers here.

Answer 6

You're not alone.
What you need to do is marry up with a licensed reputable real estate agent who will guide you through the complexities, laws and requirements of acquiring a home.
This agent in almost all cases will be paid by the licensed agent who has the listing that you choose to purchase. This agent will also make suggestions relating to the first steps such as but not limited to getting qualified for a loan etc.
That's where I would start
Good luck

Answer 7

There are several things that you could do. First contact a realtor or a mortage lender. Either one is a good starter. They would tell you what kind of loan would work better for you and if you need to fix your credit in anyway. Let them help you as they deal with this in a day to day basis. Need more steps, send me a email.

Answer 8

The first thing that you need to do is contact a REALTOR. He or she will explain the sequence of the process of purchasing a house. Buyer representation should not cost you anything either, so hire an expert and enjoy your home!

Answer 9

Step one is go to a mortgage broker let him/her show you what your payments are going to be befor you start looking at home's you will never be able to afford your payments too.
A mortgage broker can show you what you can afford.
Step two locat what you need you home to be near. example you dont want to waste money on gas driving to and from work. super markets, or free ways.
most mortgage brokers have agents they work with to help you put in a offer on a home.
a helpful hint to do is if you pick out a home you like have the saler pay your closing cost with the market being so slow and bad most salers will pay it for you