Process A Buying A House Essay

Your Journey to Home exit powerBuying a house is an exciting make for especially if it is your first home. It may be a long or short process. But no matter how long it takes you willing follow at least four steps throughout your journey to home ownership. First, you will check your deferred payment and construe your finances. Next, you will shop for a mortgage loan. Then you will shop for the right house Finally, you will move in. Remember, you or other family members will probably live in your new house for the backup of your lives. That is why it is meaning(a) to understand the steps in the home buying process. This brochure walks you through the process of buying a home.CREDIT AND FINANCESKnow Your CreditIt is not only important to spang your credit scores, but to know your credit. Know the radicals about your credit before a mortgage lender pulls your credit scores. It is helpful to write out a summary of your credit history as you know it. What are your monthly payment s? If you have been late with payments, write overcome which ones, how often you have been late, the topical status, and explain what led to the circumstances. Also write down(a) your loan and credit card balances. And explain both collections, judgements, or other delinquencies that you think might affect your credit. This way both you and the lender know what to inhabit when your credit report is pulled.Know Your FinancesYou must cover some part of a down payment (up to 20% of the purchase bell) and some closing costs (at least 3% of the purchase price). It is important to know that cash in the bank is not the only source of funds that are grateful to a lender. Will a relative give you part of your down payment as a gift? If so, have them write a letter stating the come up they will give and include that essence as a cash asset on your loan application.Do you have an insurance form _or_ system of government with a cash value? Do you have a retirement fund? Include a most recent statement from those policies. These cash assets help you to qualify even if the cash is not on hand. If you need to use these sources, your lender will instruct you how to document the withdrawals or have the gift monies transferred when the snip comes.SHOP FOR A MORTGAGE LOANShop for the Right Mortgage CompanyFirst, determine if you will use a commercial bank, a direct mortgage lender, or a mortgage broker. The trump out thing to do is call each one and ask what programs and services they offer. They jakes answer basic questions without taking a loan application or pulling your credit. However, be careful about quoted rates. off sure that rates ore given for the type of loan you are interested in and qualify for. In other words, if you are looking for a construction loan, dont compare home value loan rates.Shop for the Right MortgageOnce you have decided what type of caller-up to fail with, they will help you determine the right mortgage program for you. They will p resent you with scenarios for both flash-frozen and adjustable rate mortgages for 15-20-30 year loan periods. They will also present loans for your specific financial and credit situation, for first time homebuyers, and for existing houses or new construction. They will also tell you what loan amount you qualify for, what your down payment and closing cost cash contribution should be, and what your maximum purchase price can be.SHOP FOR YOUR HOUSELocation Location LocationTake a drive or so the communities that you are attracted to. Determine how close they are to good schools, shopping locations, and other things that are important to you. Be sure to note your commute to work from these areas noting accessibility to freeways and main roads. Once you narrow the areas you like, write down what your home should look like and features it should have how many bedrooms, bathrooms, 2-story or ranch style, older home or newer construction. Once you decide these factors, you are ready to go shopping.Real Estate AgentsReal estate agents can help you find what you are looking for. The MLS allows the agent to plug in your parameters price, style, location, size, amenities and identify some(prenominal) houses for you to look at. The agent will also present your offer to the marketer, and help you negotiate contract items much(prenominal) as seller paid closing costs or repairs to be done antecedent to closing. guide INClosingOnce your loan is approved, the house is appraised and inspected, you will meet with a title company to sign the mortgage and title documents. You will provide a copy of a homeowners insurance policy. The seller will provide a transfer of title, a pest inspection, and general safety inspection or occupancy certificate, if required by your municipality. The title company will provide you an insurance policy defend against old liens against the property. Once all documents are signed, the items are filed with the real estate department in your county, and YOU appropriate YOUR HOUSE KEYSMoving InRemember to do things like submit a change of overlay at the post office. And, if you are a renter, notify your landlord at least 30 days prior to moving. Also, remember that you will now be responsible for paying property taxes and homeowners insurance. If these items are not include with your mortgage payments, be sure to make billing and payment arrangements right away.RESOURCESFannie Mae http//www.fanniemae.com/homebuyers/index.jhtmljsessionid=JNHAKUJNMMPBVJ2FQSHSFGI?&p=OverviewFreddie Mac http//www.freddiemac.com/ merged/buying_and_owning.htmlFHA http//www.fha.com/VA http//www.homeloans.va.gov/HUD http//www.hud.gov/offices/hsg/index.cfmBankrate http//www.bankrate.com/brm/rate/mtg_home.asp?link=5