How to know all the stages you must follow when buying a home

Don't worry, know what to expect

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So you are thinking of buying a home, what a wonderful dream to come true. Owning a home is an achievable dream but only you can decide if it is the right choice for you. Do you know the process of buying a home? What steps do you have to follow? Knowing what to expect when buying your first home is key so you can be prepared. How many times do we put off going maybe to the dentist, then when we finally go you walk out with a mouth full of gauze and think hmmm it wasn't as bad I as thought it would be? This article is intended to relieve your anxieties so you can be prepared and know what to expect. Happy house hunting!

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Instructions

Difficulty: Challenging

Things You’ll Need:

This article for future reference.
Patience

Step1

Analyze your finances/budget You already took the first step, you have a dream to buy a home. Analyze your budget/finances and decide if you can afford to buy a home and if so how much house can you afford? On many real estate web sites they have mortgage calculators so you can put in your information and this will give you a ballpark figure of just how much house you can afford? A good one to try and easy to use is www.century21.com. They also have buying and selling advice on here that is extremely useful and also a mortgage and afford ability calculator.

Step2

Research and shop around Now that you have established that you can afford a house and just how much house you can afford it's time to shop around. Be sure to research the school districts if you have children. Include your hobbies and interests too. Is everything convenient for you to get to such as doctors, shopping district, post office, library, church/synagogue. Is it an up and coming neighborhood? What is the estimated projected property value of the tentative homes in the area based on the past 10 years performance? Property taxes? With so many people facing foreclosure and the economy slipping towards a recession it is important that all points of interest are researched. You waited this long for a house so what is a little longer? A mortgage is a long financial commitment, and most people plan on staying in their homes for a long time so consider all things when looking at the home, including area, safety and cost.

Step3

Educate yourself about differrent mortgage options Are you getting excited yet?? Ok so you found the house of your dreams and believe it to be within your afford ability range. Now the "fun" really begins. It is time to shop for a mortgage. There are so many different mortgage options available right now, especially in today's market. So be sure to speak to family and friends, word of mouth is always the best referral. Shop on the internet, there is a wealth of information available at your fingertips, why not take advantage of it? Be sure to do alot of research as there are so many different mortgage options that vary on percentage rates and some also have fixed rates so research is key. An educated home shopper is a prepared home owner.

Step4

Sign a contract on the negotiated price Ready, set, make an offer! The owner is going to negotiate with you so that you will both agree on a price. Then you will sign a contract and put up earnest money.

You are halfway through the buying process to owning your own home.

Step5

Obtain your mortgage (I know, you just want to go home!!) Since you already educated yourself on the different types of mortgage it is time to go obtain the mortgage.

Once the mortgage is obtained you will have to have the home inspected and appraised. You will have to have what they call a "title search", be advised there are companies that do this for a nominal fee. Find a title search company via internet or yellow pages.

Obtain hazard insurance and prepare the funds you will need for closing.

Step6

Here comes the keys! Get ready for the "closing". It is called the closing because this will be the closing of the deal to purchase the home.

You will have to bring the "closing costs" unless the owner it is agreed will be paying these fees. If so the owner will be responsible for bringing these funds. You will also have to bring the down payment and also the mortgage and insurance verification.

The owner will have to bring a clear title, deed, termite inspection and best of all the keys!!

Step7

The Closing Time for the transfer of ownership.

At the closing... there will be either the licensed real estate professional or attorney which will coordinate the signing of documents, the transfer of money and ownership.

Step8