1. Research & Mortgage Qualifications | 2. Shopping for a House | 3. Contract & Mortgage Application
4. The Title & Settlement Process | 5. Closing & Move In
Now that you know your housing wants and needs, decide what you are looking for in a neighborhood. Where you live is as important as the house you live in. Choosing a Neighborhood
- Commute : Do I need a quick commute to work? Keep in mind short commutes limit your neighborhood options.
- My personality : Do I prefer country, suburban or urban living?
- Family : Is a certain school district important to me? Do I need to live near my elderly parents?
- Downtime : Do I want to live close to my church or temple or have a short commute to night school?
- Future zoning and development : Is the park behind my house going to be developed in the future? Does this small town have plans to build a mega-shopping mall?
- Neighborhood age : What will a new neighborhood look like in 10 years? Am I satisfied with an older neighborhood, knowing it may not change much?
- Time of day : Does the neighborhood feel the same at night as it does during the day? Is weekend traffic heavier than during the weekday?
- Extra costs : Can I afford the county or city taxes or any homeowners' association fees?
- Homeowners' Associations : What are the homeowners' association rules? Are they good for protecting home values?
- Neighborhood investment : Have the homes in this neighborhood held or increased in value?
When you find neighborhoods that you like, talk to the people who live there. They'll be the most knowledgeable about the area and may be your future neighbors. Above all, you'll want a neighborhood where you feel comfortable. Take Another Step
Real estate professionals can help you find the best home to meet your needs. They can also help with parts of the mortgage process but their role is different than a mortgage professional's role. Finding a Real Estate Professional Ask your family and friends for the names of real estate professionals with whom they've worked. Or, review newspaper ads for a listing of "open houses." Stop by and talk with the real estate professional showing the house. You'll want to choose a professional that makes you feel comfortable and can provide knowledge and services you need. Most real estate professionals'' services are paid for by the seller. The buyer does not pay the real estate professional unless they have contracted with a "buyer's agent." A buyer's agent is a real estate professional who is paid for by the buyer and therefore solely represents the interests of the buyer. Questions to Ask a Real Estate Professional
- How long have you been in real estate?
- Are you a full-time real estate professional?
- Are you familiar with the community in which I want to look?
- How many homes have you sold in the last year?
- What is the average sale price of the homes you sold last year?
- Do you usually work with sellers or buyers?
- How many buyers are you presently working with? Are you acting as the exclusive "buyer's agent"?
- How many sellers are you presently working with?
- What do you consider your strengths?
- Can you please provide the names of three homebuyers as references?
The Key to House Hunting House hunting can become slightly overwhelming. You might forget one house from the next. You may get frustrated that you haven't found your dream home or get so excited you forget to focus on your wants and needs.
Looking for a home takes time. The home for you is out there. It's important that you look at your credit reports from each of the three companies to make sure they are correct. Your credit report may vary from one company to the other. Determining Home Value Once you've found the right home, you'll need to know the real value of the house so that you can make an educated offer. A home's value is determined by the following:
- Sale Price History : Past sale prices of the home are available through county courthouses, recorder's offices and your real estate professional. Pay attention to trends in appreciation or depreciation on the home
- Home Characteristics : The number of bedrooms and bathrooms, square footage and other characteristics of the home. You can get this information in tax assessor's offices nationwide and through national data vendors.
- Similar Home Prices : Ask your real estate professional to get sale prices of comparable homes in the neighborhood.
You may want to pay for a professional estimate on the home but remember that estimates are based on value and do not reflect:
- the home's condition
- recent improvements to the house
- changes in the real estate market
But estimates are still a good way to understand a home's value. This information can help you make a fair offer. .
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