|5. Choose a Home
Steps to Home Ownership!
There's no doubt that choosing a home is a big decision and
you want to do it right.
As a buyer, here's what actually happens. A home has been
placed on the market for which the seller has established an
asking price as well as other terms. In effect, this is an
offer. At this point, you have three choices: accept the
seller's offer and create a contract; reject it and not make an
offer; or suggest different terms and make a counter-offer. If
you choose this last option, the seller may accept, reject or
make a counter-offer.
Is it THE house?
A house is shelter, but a home is far more. It's where you live,
relax, entertain friends, raise families, and work. A home is
where you spend much of your life, and so choosing a house is an
How do you know if a house is THE one? Probably the best
approach is to look at as many homes as possible, something made
easy by the internet. For example try
realtor.com. Once your choices have been narrowed, you
can then contact the listing agent for details and options.
Remember he/she works for the seller and is paid by the seller!
Can you really afford it?
Remember Step 2 - the pre-approval process? Getting pre-approved
means you have a very good idea of how much you can borrow, what
loan programs will most likely work best in your situation and
how much home you can afford. You can also use the Houseaboutus
How reliable is a pre-approval? While pre-approval is not a
loan commitment, it's still necessary for lenders to check such
items as appraisals and the latest credit reports. Despite
fluctuating interest rates, pre-approval nonetheless provides a
reasoned, careful analysis of what you can afford. After all,
loan officers are routinely paid only when loans are originated.
It doesn't make much sense for loan officers to suggest high
loan limits that later can't be delivered.