Buying a home is probably the biggest
financial challenge any individual will face. To help
you become more knowledgeable of the home buying process,
we have included some steps to home ownership.
Is Home ownership Right For
Do I have a steady, reliable
source of income?
Have I been employed regularly
for the last 2 years?
Do I pay my bills on time?
Is my total debt manageable?
Do I have some money saved
for a down payment and closing costs (some
mortgage programs do not require a down payment
or closing cost to be paid by you)?
Can I afford both mortgage
and other expenses (water, electric, sewer,
If you answered "yes"
to most of these questions, you are probably on
your way to home ownership
What Can You Afford
Before you begin to look for a home, you need to determine
how you are going to finance your purchase.
Use the Home
Mortgage Calculator to help you
determine how much you can afford.
Reduce Your Debt
The fewer credit cards you carry and the lower the balances
the better. That is especially true if you have other
debts such as a car or student loan. However, do not
pay down or pay off balances with cash intended for
a down payment. Even if you choose a low-down payment
option, you are going to need cash available to pay
the down payment and closing costs.
Review Your Credit
When you look for a mortgage, lenders will review your
credit report. Your credit report is a history of how
you have managed your finances and repaid your debt.
Your credit history is pulled together by three private
companies. You may receive a copy of this report by
contacting one of the following agencies:
PO Box 740241
Atlanta, GA 30374
Phone: (800) 685-1111
National Consumer Assistance Center
PO Box 2002
Allen, TX 75013
Phone: (888) EXPERIAN
Trans Union LLC
Consumer Disclosure Center
PO Box 1000
Chester, PA 19022
Phone: (800) 888-4213
Choose An Area
Choosing the right area in which to purchase your home,
may take a lot of homework. Do you want something close
to work or in a certain school district. Below are some
factors that may help you choose a particular neighborhood.
- Overall Appearance
- Community Services
- Zoning and Building Regulations
- Property and City Taxes
- Environment Conditions
- Public Safety
Buyers Checklist for Buying
Make An Offer
When you make an offer, the seller of the home can accept
or reject it, make a counter-offer or not respond. Many
buyers believe that even though they have made an offer,
they can still look at other homes. However, if you
are notified that the seller has accepted your offer,
it’s a legally binding contract. If the seller rejects
your offer, makes a counteroffer or doesn’t respond,
your options remain open. You can accept the counteroffer,
make another offer or reject it and keep looking.
After you are notified that the seller has
accepted your offer and before the transaction is complete,
you will need to obtain a loan. You should become familiar
with the types
of loans available.
You will be required to provide some information to
your loan officer. Because of the different types of
loans available, loan officers may require different
information. Be sure to verify all needed information
with your loan officer.
Consider Your Options
In addition to providing your finanicial information,
you will also need to communicate with the loan officer
the type of loan you are
interested in, the amount of money you want to borrow,
the down payment you will be making, the date you would
like to close, and the interest rate you would like
to secure. If you have questions about any of these
steps, our Mortgage
Loan Officer will be glad to assist.
Up Front Fees
Although costs and terms vary among different loan programs,
you should be prepared to pay some fees (application
fee, appraisal fee, credit report fee, flood certification
fee, and income verification and analysis fee). Check
with your Mortgage Loan Officer on which ones to expect.
Close The Sale
The final step to buying a home is the closing. The
closing is the process in which all of the players come
together to complete the sale. These players usually
- You, the home buyer
- The seller of the home
- The closing agent
- The real estate attorneys for the buyers and
- The mortgage lender
- The real estate professional
- A title insurance representative
- An escrow agent
You will sign a number of documents
related to the mortgage, as well as pay closing costs.
Your closing costs may be part of your mortgage or they
might be paid by the seller or builder of the home.
Each closing is different.
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