Ten Steps To Take When Buying A Home

Trying to find that perfect home for you to buy can be a daunting task. Many people run into problems when buying a home because they didn’t do their research before jumping the gun. There are some steps that you can take to make the experience more exciting and less stressful. Follow these ten steps to help your home buying adventure become more rewarding and pleasant.

Finding The Right Real Estate Agent

Get in to contact with a well reputable firm like Century 21 Sunshine that will protect you through the home buying process.

Find a real estate agent that will work hard at finding a home that meets all the criteria that your looking for.

Look for honesty, reliability, and integrity when choosing your agent to represent your home buying process.

Find someone you feel comfortable to work with, someone you can communicate well with to make the home buying process more enjoyable.

Affording The Home Your Buying

Making sure you can afford the home your buying is an very important step. Take in account of the cost of mortgage, homeowners insurance and yearly property taxes.

Get information on your local utilities and a rough estimate as to what they will cost per month. These utilities would include gas, water, electric, sewer and trash. Also determine the cost of the utilities during the colder months and see how much your bills may fluctuate.

Be sure to talk with your realtor and find out if the home you are buying is in a neighborhood that is regulated by HOA’s ( Home Owners Association Fees) or CC&R’s ( Covenants, Conditions, and Restrictions ). These regulations may have certain stipulations that govern what you can do with your property.

Maintenance can be very costly if your property needs lots of up-keep. Take notes of the property and get a good understanding as to what it would cost to keep the home or property cleaned up and well maintained. Be sure to have enough money saved just in-case there is an emergency that arises and something needs to be fixed.

In most cases when buying a home there are improvements that need to made. Set aside some money to cover the cost for renovations and repairs that may need to be made to make the house livable or more desirable. This may also include acquiring new furniture, household appliances, fixtures or new flooring. In any case, be sure to take this into account cause it could be a big expense.

A very important cost to buying a home is to understand that there are closing costs involved to seal the deal when buying a home. Get in touch with your realtor and financial institution to make sure you are aware of all the money that may be required at closing to purchase your home.

When purchasing a home, there are costs that you might endure while transitioning into your new home. Moving expenses can be quite costly. Be sure to plan and budget for these expenses if they should arise.

Mortgage Payments and Interest Rates

Consult with your financial institution and find the best interest rates available to you. When trying to determine your mortgage payment, try to factor in that a down payment is typically 20%. The more money you can put down towards your down payment the lower your mortgage payment will be. This will usually save you money in the longer run with lower interest rates and having to avoid private mortgage insurance that’s an additional cost.

Add up your monthly income and home expenses and try to find a mortgage payment that is suitable and affordable for you. Keeping your home owners expenses roughly 30% of your monthly income and below is where you want to focus on.

When buying home, remember that if you put 20% down payment on the total cost of the home, that you already have 20% equity in that home while you are financing the other 80%.

Understanding Your Mortgage and Everything Involved

Take time to read through all your papers before signing on a new home. Get a good understanding when you monthly mortgage payments will start and when they will end. Find out what your monthly payments will be and be sure to find out if your interest rates are adjustable or fixed.

If you have an adjustable rate mortgage, be extremely careful, and get a full understanding of how much they can fluctuate especially if you planning on staying in the home longer than your fixed rate period. If you have any questions about your loan, whether it would be an adjustable rate or a fixed rate, to contact your loan officer for the details on your loan.

Get a Home Inspection Done

When you find a home that your are interested in and are considering buying, be sure to get a home inspection done from someone independent from the seller. This is extremely important so your informed of any hidden defects in the house.

After getting an inspection done, you will receive a copy of the detailed report so you can determine if there is any extra work that needs to be done on the home. You will also receive information explaining the different features the home may have such as heating / cooling, if your on a sewer or septic tank, what kind of condition the home is in, ect…

Buying a Home Before Selling

When buying a home before selling your former one, you can end up paying for two mortgages and two sets of home expense. Plan every detail out and budget if you decide to buy a home before you sell your previous one. This also ties into knowing when your first mortgage payment is due and when your closing will take place on your new home.

If you are working on a budget, and trying to sell a property while trying to buy a home, it would be best to sell your previous home first. There is no magical number of what the costs will be when purchasing a new home. The best thing to do is minimize your investment as much as possible but taking the necessary steps to protect yourself from becoming short on cash.

Distance From Work or Workplace

Try to get a good idea on what it would cost to drive back-and-forth from work. We all know how expensive gas is these days and driving is pretty much necessary to get the job done. Set aside a budget plan to accommodate the cost of gas and tie that into your monthly expenses so it won’t come to a surprise in the future.

Property Taxes and Tax Benifits

The best thing to do to find out about property taxes is to find out what county you reside in and get information on what your yearly property taxes are. Property taxes are usually due twice a year and can usually be intertwined with your monthly mortgage payment and home owners insurance.

See if there any tax benefits for purchasing the home you are interested in. Before you buy, talk with an accountant and have them run a tax projection with or without the house and find any details as to what your tax benefits maybe for buying that in particular home.

With the declining economy, there have been government programs that help first time home buyers get tax breaks if they purchase a new home. Find out if you qualify for these programs cause they can help you with many of the necessary cost it takes to becoming a home owner.

Emergency Funds For Repairs

Being a home owner requires you to be responsible for your property. Having extra cash set aside will allow you to take care of any home repairs, renovations, and or remodeling that may need to be done. It’s better to have those funds available to you through a checking or savings account than running up credit cards for repairs.

There is usually always something that will need to be repaired when you become a home owner. You will feel more comfortable having the funds available to you when something should arise. Get in touch with your neighbors and local community to find out what handyman reputable and affordable if you need to contract someone to maintenance you home.

Buy Smart And Know All Risks

Market prices are always changing with today’s economy. Be smart when choosing your next home. Be sure to look over all your documentation when deciding on a property that your interested in. If you follow these steps when making a home purchase, it will make your home buying process that much easier and know what to expect. Do your research and determine if you making the right choice before you buy. Your realtor should provide you with a good estimate on what a home should sell for based on a number of factors. Have fun and good luck on your next purchase.