Buy a House – 7 Steps to Home Ownership in 7 Weeks!
Buying a home is intimidating to most people simply because it’s a complicate course of action we seldom do. So let’s boil it down to bite-sized chunks. It’s truly a straightforward ordern anyone can master to quickly reach their dream of home ownership.
1. Where NOT to start: Don’t commit to a Realtor right away. Most people, are stretching to have enough cash to close. Using a “Buyers Agent” will cost you 2%-3% more for the house and could keep you from affording one. So where should you start?
2. Where TO start: If possible, go look at new homes. Make no commitments, just look and ask lots of questions. DO NOT agree to use their mortgage company. Look at existing homes too. Call ONLY the listing agent for each house. DON’T ever discuss it with any other agent no matter how much they try to get you to.
Tell the listing agent you are not using a buyer’s agent and if you make an offer, you would reduce the offer price by 3% to compensate. They should be agreeable. If not, consider another house. DON’T let this agent show you other houses; they then become your buyer’s agent!
FACT: They will all tell you the seller pays their commission so it does not cost you. Baloney! EVERYTHING the seller “pays” is built in to your final price! Sellers want a net after sales costs. If commission cost is 3% less, they can take a 3% lower price from you and net the same. Simple! AND the listing agent & your mortgage company will nevertheless manager the contract stuff.
3. How much can I provide? If you buy a new home use the builder’s mortgage company. Saves you money & time. They will “pre-qualify” you & tell you how much you can use. If not, get a local mortgage company. Preferably local branch of a national company.
If you are talking to several new home builders, qualify yourself first: Add all your monthly debt payments up, minimums only. Go to Realtor.com, Bankrate.com & search for mortgage calculators. Plug in your numbers to get the answer.
Best: On Realtor.com look up a local home listing & use the on-page calculator. Listing Realtor should have put tax & insurance estimates for that house in the calculator for you. You need these to get the total number.
4. Find your dream house: Search! Realtor.com, search engines, newspapers & their website’s, excursion likely areas looking for. FACT: signs. Do all the above. Cross match results. When you find prospects online, excursion area and look for others. I found several this way & helped a client buy one! Do same already if using a buyer’s agent for same reasons. Otherwise, you could miss the perfect one.
5. How to make the best deal? Put in the contract for seller to pay all closing costs that are negotiable and 3% or 6% towards your total closing expenses.(check with mortgage co. for their max %) Get “down payment assistance” program to help. Ask the mortgage company for it. This cuts your cash needed to tiny amount.
6.Inspect: Get an inspector who reports to you only! Go with him. Ask questions. You will learn a lot!
7. Close! Ask your loan officer & the Realtor to go with you. Check numbers on closing statement. If OK, sign the papers. They are non-negotiable anyway. This allows 2-3 weeks to find a house & work out the contract and 3-4 weeks to get the mortgage processed and ready to close. 7 weeks to your dream home! attract-Hoo!