Are You
Ready?
One of the keys to making the home buying process easier and
more understandable is planning. In doing so, you'll be able
to anticipate requests from lenders, lawyers and a host of
other professionals. Furthermore, planning will help you
discover valuable shortcuts in the home buying process.
Do You Know What You Want?
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?
Whatever your answers, the more you know about the real
estate marketplace, the more likely you are to effectively
define your goals. As an interesting exercise, it can be
worthwhile to look at the questions above and to then
discuss them in detail when meeting with local REALTORS®.
Do You Have The Money?
Homes and financing are closely intertwined. (Financing is
the difference between the purchase price and the down
payment, commonly referred to as debt or the mortgage.) The
good news is that over the years new and innovative loan
programs have evolved which require a 5 percent down payment
or less. In fact, a number of programs now allow purchasers
to buy real estate with nothing down.
In
addition to a down payment, purchasers also need cash for
closing costs (the final costs associated with closing the
loan). Several newly emerging loan programs not only allow
the purchase of a home with no money down, but also
underwrite closing costs.
Not
everyone, however, elects to purchase with little or no
money down. Less money down means higher monthly mortgage
payments, so most homebuyers choose to buy with some cash up
front.
As to
closing costs, in markets where buyers have leverage, it may
be possible to negotiate an offer for a home that requires
the owner to pay some or all of your settlement expenses.
Speak with local REALTORS® for details.
Is Your Financial House in Order?
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.
Provided by the National Association of
REALTORS® and Realtor.com
