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Before you get started on your home search, decide what type of home you wish to buy. Look at your budget and figure out what how much you can really afford. Keep in mind that there are costs to maintain a home, as well as taxes and insurance in addition to the monthly mortgage payment. Decide whether you want the home to be brand-new or if you're interested in purchasing an existing home.
You should also decide whether you're willing to purchase a home that needs repairs. Although you can save a lot of money on a home that needs to be fixed up, these homes can be a lot of work. Also, decide what features you want in a home. For example, figure out how many bedrooms, bathrooms, living and dining areas you need and how large the kitchen and garage should be. Decide whether you want amenities such as a fireplace or a pool. Also, get a general idea of how many square feet the home should have before you start shopping. -
Real estate agent commissions are typically paid by the seller rather than the buyer, so it makes no sense not to use one for your home search. Real estate agents have a lot of knowledge about the homes in the areas where they work. They also have access to Multiple Listing Service information, which isn't available to ordinary homebuyers. Getting the help, guidance and advice of a good real estate agent can be invaluable, especially when you're having trouble finding the right home for your needs.
Even if you are being represented by an agent, you can still take advantage of homebuying resources such as www.realtor.com to speed up your home search. Keep in touch with your real estate agent, and ask her if she can show you any of the properties you found during your own search. -
If you're thinking of purchasing an existing home, you must get it inspected. Your real estate agent can probably recommend an inspector who will be thorough yet charge a reasonable price. Consider the seriousness and potential repair cost of the problems the inspector finds before deciding whether to buy the home. Also consider asking your real estate agent to give you a reference for a home appraiser, even if it's not required to complete the purchase. An appraisal can protect you from buying a home that's worth less than the asking price. It can also make the process of getting your mortgage loan much smoother, since lenders feel more confident when they're assured of a home's value. You'll also need to shop for homeowners insurance before you purchase your home.
In most cases, you will have to pay closing costs when buying a home. Thus, you'll have to consider how much cash you have in store before committing to buy any of the homes you've looked at. Also, you can greatly reduce your monthly mortgage payment by making a down payment of at least 20 percent of the home's purchase price. This not only reduces the principal of your loan, but also eliminates the need for private mortgage insurance, a type of insurance that protects the lender in the event that your home is foreclosed upon.
