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Nine Steps to Buying a Home
The steps to buying a home in the United States are generally the same for anyone. These steps are recommended by the U.S. Department of Housing.
The home buying process can seem complicated, but if you take things step-by-step, you will soon be holding the keys to your own home!
- Ask questions every step of the way. Work with professionals who help you understand the process, whether or not you are new to home buying. There are many considerations (and new ones come up all the time); it is important for you to have an understanding of everything that may affect you down the road. Real estate agents, appraisers, home inspectors, bankers, etc. who have been in their positions for awhile will think of things that never come to mind in the average person and they stay current with any market news that may affect your decision. It's their job to take care of you and help you make the best choices for you.
- Figure out how much you can afford: This, of course, depends on your income, credit rating, current monthly expenses, down payment and the interest rate. Many people are surprised when they realize that the savings on income taxes due to homeowner's deductions helps to offset the cost of owning a new home. The most important ant step is to determine your credit rating from the top ranking credit bureaus and clear up any discrepancies (and there generally are some), and work to eliminate debt if it looks as though your debt-to-income ratio might be a problem (that will hold down your score). This step is important no matter what you do, but it will definitely pave the way to home ownership.
- Shop for a loan: This will save you money. Be sure to read ALL of the fine print so that when you accept a loan, you will not be surprised by negative mortgages, dramatically escalating interest, or balloon payments in a few years. Many banks are now offering very competitive rates; they are definitely worth checking out.
- Learn about home buying programs: Different states have programs to help people get into housing. Some banks do also, such as Bank of America's Acorn Loan Program. Learn about closing costs, what they are, how much you can expect to pay. Find out what can be rolled into a loan and if that will work for you.
- Shop for a home: This is easy with online search engines, including the one located on this site: Marin Homes. A professional agent can help you locate desirable properties that may never reach the market, so in addition to your own searches, do contact a professional real estate agent. If you are new to the area, your agent will also provide information about the neighborhood, schools, shopping, transportation, and all other amenities. This can be extremely important to your happiness in your new home.
- Make an offer: Your real estate agent will know the market, do the research on the home's history, and work with you to make the very best offer, not only to insure the best price, but also to make best efforts to have an offer accepted.
- Get a home inspection: Very important and not only determined by the age of the home. Sometimes even new houses have issues with quality of construction, sites, slopes, trees, water, future development, etc. This is important no matter what the age of the home or the exterior appearance. A professional can save you a great deal of money, and if the home needs work, your real estate agent will take that into account with any offers either through price reduction or credit back to remedy any issues.
- Shop for homeowners insurance.
- Sign papers.
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