Let's say one morning you wake up and realize that, yes, you should buy
a home. You're tired of throwing away money on rent and figure that
it's time to get into a home of your own. But you have reservations.
After all, if it's your first time, you've got questions. You might be
a little nervous that you'll mess up, and it's normal to feel that way.
You are probably spending hundreds of thousands of dollars and making
the most important financial purchase of your life.
You will find that being an informed individual about the home buying
process is empowering for you. Lucky for you that you came to the right
place. So let's get started buying your first home!
Consider if Home Buying is For You
Many people harbor secrets fears about buying a home, and some of those
fears are justified. Not everybody is cut out to own a home, and if
you're one of those people, it's better to find this out now than when
you're under contract.
Pick a Real Estate Agent
With so much information available online, you might wonder why you
need an agent at all. But all local markets vary from one another, and
a good agent can guide you by giving you information based on
experience and market knowledge.
- Why Hire an Agent?.
An agent with experience can help you to avoid making mistakes such as choosing the wrong home or offering too much.
- Find a Real Estate Agent.
Start by asking your friends and family member for referrals. Make sure
you are comfortable with your agent before committing to work with that
person.
- Follow Protocol for Working with Agents.
Here are 10 tips to prevent you from messing up or saying the wrong thing to an agent.
Learn How to Avoid Home Buying Mistakes
The best way to avoid making a mistake it to learn from the mistakes
others have made. Buying a home in a desirable location is your best
defense. Remember: location, location, location.
- First-Time Home Buyer Tips.
Start your search online, and don't rely on print because most homes are not advertised in the newspaper.
- Preview Homes for Sale.
Ask your agent to look at homes before showing them to you, and tour only those that fit your parameters.
- Avoid the Top 3 Home Buying Blunders.
Protect your earnest money deposit by writing contingencies into your contract. Here's how to make sure you buy the right home.
Make an Offer and Negotiate Like a Pro
Although buying a home is not like buying a car, for example, you can still negotiate to get a good price.
Get a Home Inspection and Read Disclosures
Never
buy a home without getting a home inspection. Most states have laws
about the types of disclosures you are entitled to receive.
- What a Home Inspection Covers.
Go through this list and make sure your home inspector doesn't miss anything crucial.
- Material Facts.
Besides disclosing lead-based paint, which any home built before 1978 can contain, sellers should notify you of major defects.
- Do a Final Walk-Through.
Always do a final inspection a few days before closing to make sure the
property is in the same condition as when you agreed to buy it.
Closing on Your Home
Transactions generally
close within 30 to 60 days after your offer has been accepted. Remember
to reserve movers or a moving truck early because many people move at
the end of the month.
- Home Insurance.
Shop for insurance rates carefully. Often, the company that insures your automobiles may offer you the best policy rates.
-
Title Insurance Policy.
You might think you don't need a title policy, but it's the cheapest
form of insurance you can buy, and you pay the premium only once.
- Home Buying Closing Process.
This covers every step of the home closing process, from the beginning to the end.
*Source: About.com
