Home Purchasing2021-08-23T10:16:54-04:00

HOME PURCHASING

A Home is a big purchase, and the process can be daunting, especially if you’ve never bought a Home before or if it’s been a while since your last purchase. Here’s what to expect from the process.

HOME PURCHASING

A Home is a big purchase, and the process can be daunting, especially if you’ve never bought a Home before or if it’s been a while since your last purchase. Here’s what to expect from the process.

A couple on a couch budgeting for a new house sitting on couch and pink piggy bank on stool

BUDGETING FOR A HOME

When looking to purchase a home it’s important to figure out your budget. Looking for houses in your area with similar amenities that you want can help you figure out a price range. Once you have got an idea of the budget it’s important to start looking for loans if you can not afford the house. Home loans can be conforming or non conforming. Conforming loans follow government guidelines. This can be a jumbo loan which has a high interest rate and a higher risk. Conforming loans can be sold on a secondary market. Non conforming loans usually come from a lender or a lending institution. These loans have their own guidelines and can not be sold on a secondary market.

BUDGETING FOR A HOME

When looking to purchase a home it’s important to figure out your budget. Looking for houses in your area with similar amenities that you want can help you figure out a price range. Once you have got an idea of the budget it’s important to start looking for loans if you can not afford the house. Home loans can be conforming or non conforming. Conforming loans follow government guidelines. This can be a jumbo loan which has a high interest rate and a higher risk. Conforming loans can be sold on a secondary market. Non conforming loans usually come from a lender or a lending institution. These loans have their own guidelines and can not be sold on a secondary market.

FHA LOAN

Another loan type is distributed by the Federal Housing Association(FHA). An FHA loan usually has a lower down payment and more mild requisites, but it does require the client to pay a mortgage insurance that bundles with the mortgage loan. Mortgages are secured loans that are used to finance a property. There are two types of mortgages, a fixed-rate mortgage and an adjustable-rate mortgage. A fixed-rate mortgage is more challenging to qualify for, it requires a big down payment, high credit score and low income-to-debt ratio. An adjustable-rate mortgage is an interest only loan that resets periodically and usually comes in periods of one, five or seven years.

FHA LOAN

Another loan type is distributed by the Federal Housing Association(FHA). An FHA loan usually has a lower down payment and more mild requisites, but it does require the client to pay a mortgage insurance that bundles with the mortgage loan. Mortgages are secured loans that are used to finance a property. There are two types of mortgages, a fixed-rate mortgage and an adjustable-rate mortgage. A fixed-rate mortgage is more challenging to qualify for, it requires a big down payment, high credit score and low income-to-debt ratio. An adjustable-rate mortgage is an interest only loan that resets periodically and usually comes in periods of one, five or seven years.

HOUSE HUNTING

Now that you have a budget, it is time to list what amenities you want your home to have. Once that is done its best to reach out to a real estate agent. A real estate agent is a licensed professional who handles real estate transactions. These agents usually work for a broker or brokerage firm. Your agent can help you find houses within your budget and have the amenities you want as well or search online for houses that suit you and your budget. Next, tour the houses you like most. If the house you like is available and on the market then it is time to finalize the purchase.

HOUSE HUNTING

Now that you have a budget, it is time to list what amenities you want your home to have. Once that is done its best to reach out to a real estate agent. A real estate agent is a licensed professional who handles real estate transactions. These agents usually work for a broker or brokerage firm. Your agent can help you find houses within your budget and have the amenities you want as well or search online for houses that suit you and your budget. Next, tour the houses you like most. If the house you like is available and on the market then it is time to finalize the purchase.

BUYING YOUR HOME

After you have found a house that is perfect for you, then you should make an offer. An offer will usually be made in the form of a letter, your agen will usually write this. The offer letter should include your basic personal information (name and address), the price offer you want to make and any other terms, and a deadline for a reply. The seller will either accept, reject or make a counteroffer to your offer. A counteroffer could be a change in price or conditions of the offer. If this offer does not please you then walk away from it, but if you are happy with the offer then it is time to move on to the next phase of the process. Negotiating these offers might take a while.

After reaching an agreement, you should schedule a home appraisal and inspection. A home inspection is an analysis of the condition and safety of your home. It is important to get a professional to provide you with the inspection. After the inspection look over the list of items the inspector found wrong with the home. These errors in the house could change the value of it. If you have a mortgage loan it is important to get a home appraisal. A home appraisal evaluates the value of the house. A home appraisal could be used to renegotiate the price of the house. Once price and terms are suitable and agreed upon then the process should conclude.

BUYING YOUR HOME

After you have found a house that is perfect for you, then you should make an offer. An offer will usually be made in the form of a letter, your agen will usually write this. The offer letter should include your basic personal information (name and address), the price offer you want to make and any other terms, and a deadline for a reply. The seller will either accept, reject or make a counteroffer to your offer. A counteroffer could be a change in price or conditions of the offer. If this offer does not please you then walk away from it, but if you are happy with the offer then it is time to move on to the next phase of the process. Negotiating these offers might take a while. After reaching an agreement, you should schedule a home appraisal and inspection. A home inspection is an analysis of the condition and safety of your home. It is important to get a professional to provide you with the inspection. After the inspection look over the list of items the inspector found wrong with the home. These errors in the house could change the value of it. If you have a mortgage loan it is important to get a home appraisal. A home appraisal evaluates the value of the house. A home appraisal could be used to renegotiate the price of the house. Once price and terms are suitable and agreed upon then the process should conclude.

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