Steps to Home Ownership!
One of the keys to making the home buying process easier and
more understandable is planning. In doing so, you'll be able to
anticipate requests from lenders, lawyers and a host of other
professionals. Furthermore, planning will help you discover
valuable shortcuts in the home buying process.
Do You Know What You Want?
Whether you are a first-time homebuyer or entering the
marketplace as a repeat buyer, you need to ask why you want to
buy. Are you planning to move to a new community due to a
lifestyle change or is buying an option and not a requirement?
What would you like in terms of real estate that you do not now
have? Do you have a purchasing timeframe?
Whatever your answers, the more you know about the real
estate marketplace, the more likely you are to effectively
define your goals.
Do You Have The Money?
Homes and financing are closely intertwined. (Financing is the
difference between the purchase price and the down payment,
commonly referred to as debt or the mortgage.) The good news is
that over the years new and innovative loan programs have
evolved which require a 5 percent down payment or less. In fact,
a number of programs now allow purchasers to buy real estate
with nothing down.
In addition to a down payment, purchasers also need cash for
closing costs (the final costs associated with closing the
loan). Several newly emerging loan programs not only allow the
purchase of a home with no money down, but also underwrite
Not everyone, however, elects to purchase with little or no
money down. Less money down means higher monthly mortgage
payments, so most homebuyers choose to buy with some cash up
As to closing costs, in markets where buyers have leverage,
it may be possible to negotiate an offer for a home that
requires the owner to pay some or all of your settlement
Is Your Financial House in Order?
Those great loans with little or nothing down are not available
to everyone: You need good credit. For at least one year prior
to purchasing a home, you should assure that every credit card
bill, rent check, car payment and other debt is paid in full and