Now that you've made the decision to purchase a home, here are some suggestions to aid you in your search.
- Plan ahead. First, examine your financial situation. Inspect your credit reports and find out if there are any incorrect items adversely affecting your credit. Look at your current debts and income and decide on an affordable monthly mortgage payment as well as a down payment. Getting pre-approved for a loan will help you gain the confidence of sellers when you make a purchase offer, and it will give you a realistic price range.
- Starting your search. Now you can start looking at homes. Consider involving a real estate agent to help you find homes that fit your needs and get you through the purchasing process.
Next, make a list of items that are necessities, others that are unacceptable and another for any amenities you might like. These lists will help your agent facilitate the search. - Making your offer. Before making an offer on the home you find, research any restrictions, codes or laws in the new location. Be familiar with similar homes in the area so you can know a reasonable asking price for the area. Consult a qualified real estate agent and pay attention to other factors, such as necessary repairs and the amount of time it has been on the market.
- What to do next. Once you've settled on a price, you can begin ordering inspections and doing the paperwork. You'll need an appraisal for final approval on your home loan, but an appraisal won't be as detailed as an inspection, which will note any problems with the home. A home inspection is especially important on an older home or a home you suspect might have problems.
As you begin the paperwork, make sure everything matches earlier verbal agreements. Deviations from verbal agreements should affect the final price of the home. During this stage, a real estate agent is a valuable asset for any questions you might have. Missing or incorrect information on paperwork at this stage can cause delays you don't want to deal with. - The final steps. Before you close, make a last walk-through of the home. Make sure any contractual problems were repaired and you are satisfied with the condition of the home. After you sign the final papers and close on the home, the seller is no longer responsible for any of the home's problems. Also, make sure you have any necessary insurance. Your state and lender will both have specific requirements for home or title insurance.
- A few words of caution. Avoid any large purchases. Lenders evaluate your debt-to-income ratio, cash savings and large recent purchases when they consider you for a loan. Whether you pay cash or use a credit card, large purchases will affect this evaluation in a negative way. This can increase your loan's interest rate or even prevent you from getting a loan. It's best to wait until everything is finalized.
Once you've closed on the home, the deed is yours and that officially makes you a new homeowner. Keep in mind your home is an investment. Treat it well and keep it in good shape and it will likely increase in value.
Angela Whipple
Advantage Realty and
Marketing Group LLC
4419 Myers Park Drive
Durham, NC 27705
| Office: | 919.306.1868 |
| Fax: | 919.287.2729 |
