10 Steps to Home Ownership!
1. Are You Ready?
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?
Homes and financing are closely intertwined. The good news is that over the years new and innovative loan programs have evolved which require a 5 percent downpayment
or less. In fact, a number of programs now allow purchasers to buy real estate with nothing down. 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
on time.
2. Get a Realtor
Buying and selling real estate is a complex matter. At first it might seem that by checking local picture books or online sites you could quickly find the right home at the right
price. A basic rule in real estate is that all properties are unique. No two properties -- even two identical models on the same street -- are precisely and exactly alike. Homes
differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike.
Once hired for the job, the Realtor will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given
situation. Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be
set in stone. During your time in the marketplace Realtor will keep you updated and alert you to each step in the transaction process.
3. Get Loan Preapproval
"Preapproval" means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with
one or more specific mortgage programs. Based on this information, the lender will provide a preapproval letter, which shows your borrowing power. The loan officer will
carefully review your financial situation, including your credit report and other information. The lender will then suggest programs which most-closely meet your needs.
4. Look at Homes
Each of us is different and so it's important to list the features and benefits you want in a home. Consider such things as pricing, location, size, amenities (extras such as a
pool or extra-large kitchen) and design (one floor or two, colonial or modern, etc.). Next, it's important to consider your priorities. If you can't get a home at your price with all the
features you want, then what features are most important? For instance, would you trade fewer bedrooms for a larger kitchen? A longer commute for a bigger lot and lower
cost?
Lastly, consider your needs in several years. If you'll need a larger home, maybe now is the time to buy a bigger house rather than moving or expanding in the future. If you
expect your income to increase, perhaps you should consider a more expensive home financed with a loan program where monthly payments increase in the future.
5. Choose a Home
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 enormous decision. How do you know if a house is THE one? Probably the best approach is to look at as many homes as possible.
Can you really afford it? Remember Step 2 - the preapproval process? Getting preapproved 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.
6. Get Funding
There are thousands of loans available out there from a variety of lenders, but in general, the mortgage you choose will likely be determined by at least several key factors:
returns for the past two or three years if you are self-employed. During the prequalification procedure, the loan officer will describe the type of paperwork required.
7. Make an Offer
You sometimes hear that the amount of your offer should be x percent below the seller's asking price or y percent less than you're really willing to pay. In practice, the offer
depends on the basic laws of supply and demand: If many buyers are competing for homes, then sellers will likely get full-price offers and sometimes even more. If demand
is weak, then offers below the asking price may be in order.
The process of making offers varies around the country. In a typical situation, you will complete an offer that the Realtor will present to the owner and the owner's
representative. The owner, in turn, may accept the offer, reject it or make a counter-offer.
Because counter-offers are common (any change in an offer can be considered a "counter-offer"), it's important for buyers to remain in close contact with Realtor during the
negotiation process so that any proposed changes can be quickly reviewed.
8. Get Insurance
There are various forms of insurance associated with home ownership, including these major types:
broker.
9. Closing
Settlement is a brief process where all of the necessary paperwork needed to complete the transaction is signed. Closing is typically held in an office setting, sometimes with
both buyer and seller at the same table, sometimes with each party completing their papers separately.
Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was
signed. At closing itself, all papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all
parties to the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state
governments collect their transfer taxes
10. What's Next?
You've done it. You've looked at properties, made an offer, obtained financing and gone to closing. The home is yours.
About two weeks after closing, contact your local property records office and confirm that your deed has been officially recorded. Such records are public notices that show
your interest in the property.
Enjoy your home. Owning real estate involves contracts, loans, and taxes, but ultimately what's most important is that homeownership should be a wonderful experience.
Enjoy!
1. Are You Ready?
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?
Homes and financing are closely intertwined. The good news is that over the years new and innovative loan programs have evolved which require a 5 percent downpayment
or less. In fact, a number of programs now allow purchasers to buy real estate with nothing down. 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
on time.
2. Get a Realtor
Buying and selling real estate is a complex matter. At first it might seem that by checking local picture books or online sites you could quickly find the right home at the right
price. A basic rule in real estate is that all properties are unique. No two properties -- even two identical models on the same street -- are precisely and exactly alike. Homes
differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike.
Once hired for the job, the Realtor will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given
situation. Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be
set in stone. During your time in the marketplace Realtor will keep you updated and alert you to each step in the transaction process.
3. Get Loan Preapproval
"Preapproval" means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with
one or more specific mortgage programs. Based on this information, the lender will provide a preapproval letter, which shows your borrowing power. The loan officer will
carefully review your financial situation, including your credit report and other information. The lender will then suggest programs which most-closely meet your needs.
4. Look at Homes
Each of us is different and so it's important to list the features and benefits you want in a home. Consider such things as pricing, location, size, amenities (extras such as a
pool or extra-large kitchen) and design (one floor or two, colonial or modern, etc.). Next, it's important to consider your priorities. If you can't get a home at your price with all the
features you want, then what features are most important? For instance, would you trade fewer bedrooms for a larger kitchen? A longer commute for a bigger lot and lower
cost?
Lastly, consider your needs in several years. If you'll need a larger home, maybe now is the time to buy a bigger house rather than moving or expanding in the future. If you
expect your income to increase, perhaps you should consider a more expensive home financed with a loan program where monthly payments increase in the future.
5. Choose a Home
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 enormous decision. How do you know if a house is THE one? Probably the best approach is to look at as many homes as possible.
Can you really afford it? Remember Step 2 - the preapproval process? Getting preapproved 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.
6. Get Funding
There are thousands of loans available out there from a variety of lenders, but in general, the mortgage you choose will likely be determined by at least several key factors:
- How much down?
- How's your credit?
- Are you a first-time buyer?
returns for the past two or three years if you are self-employed. During the prequalification procedure, the loan officer will describe the type of paperwork required.
7. Make an Offer
You sometimes hear that the amount of your offer should be x percent below the seller's asking price or y percent less than you're really willing to pay. In practice, the offer
depends on the basic laws of supply and demand: If many buyers are competing for homes, then sellers will likely get full-price offers and sometimes even more. If demand
is weak, then offers below the asking price may be in order.
The process of making offers varies around the country. In a typical situation, you will complete an offer that the Realtor will present to the owner and the owner's
representative. The owner, in turn, may accept the offer, reject it or make a counter-offer.
Because counter-offers are common (any change in an offer can be considered a "counter-offer"), it's important for buyers to remain in close contact with Realtor during the
negotiation process so that any proposed changes can be quickly reviewed.
8. Get Insurance
There are various forms of insurance associated with home ownership, including these major types:
- Title insurance
- Homeowners' insurance
- Flood insurance
- Home warranties
broker.
9. Closing
Settlement is a brief process where all of the necessary paperwork needed to complete the transaction is signed. Closing is typically held in an office setting, sometimes with
both buyer and seller at the same table, sometimes with each party completing their papers separately.
Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was
signed. At closing itself, all papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all
parties to the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state
governments collect their transfer taxes
10. What's Next?
You've done it. You've looked at properties, made an offer, obtained financing and gone to closing. The home is yours.
About two weeks after closing, contact your local property records office and confirm that your deed has been officially recorded. Such records are public notices that show
your interest in the property.
Enjoy your home. Owning real estate involves contracts, loans, and taxes, but ultimately what's most important is that homeownership should be a wonderful experience.
Enjoy!
| DEBBIE RICHARDS REALTY GROUP yourbrokerdebbie@aol.com 847-785-0000 2016 Lewis Avenue North Chicago, IL 60064 |
| Broker / Owner Debbie Richards yourbrokerdebbie@aol.com |
| 1- 847-785-0000 |
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