7 Steps to Buying Your First Home

1. Find Your Real Estate Agent - Interview 2 to 3 Buyer Agents pick the one you are most comfortable with. Make sure they can give you the service you need. Real estate agents who can send you daily emails of homes that fit your criteria will get you into your new home faster and save you money at the same time.

2. Complete Mortgage Pre-Approval - Stop! Don't pass go until you complete this step. The process takes 20 to 30 minutes over the phone, on line, or in person. This step determines whether or not you can buy a house and how much home you can afford. This step sets up the entire process all the way through closing.

3. Pick The Setting For Your Family To Grow - Rural, Suburban, In Town, City, On the Beach, In the Mountains, Subdivision or Acreage. The place your family settles depends a lot on where you grew up and your childhood experiences.

4. Determine What Type House Fits You - 2 stories, Rancher, Basement, no basement, Split Level, Cape Cod, Bungalow, Log Home, High Rise Condo, or Townhouse. The home style choices are not endless but after seeing a dozen homes they all start to blend together.

5. Select What Amenities You Want or Need - Eat in Kitchen, Formal Dining Room, Fireplace, Air Conditioning, Jacuzzi, 2 baths, 3 baths, 3 car garage, Patio, Deck, Screened Porch, Wooded Lot, Level Lot. The choices are limited only by your imagination and wallet.

6. What Schools Do You Want For Your Children - Public School, Private School, Parochial or Religious, How about Home School? In neighborhood walk to school, bussing OK? Mom and Dad drop off. Involve the kids as much as you can, this should also be their choice.

7. Don't Forget Your Transportation Needs - travel to work do you use public transportation, How about travel time 20 minutes 45 minutes or more to work OK? Special needs do you require access to medical facilities. Shopping and recreation some areas it's a 25 minute ride to get a gallon of milk.

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A Helpful Home-Buying Checklist for First-Time Home Buyers

For most people, buying a home represents the largest and most significant investment they will ever make. So it only makes sense to prepare for that process.

Here are seven things you can do to prepare for the home buying process, before you even begin shopping for a home.

1. Learn the home buying steps in advance.
When you understand the basic steps to buying a home, you will make better decisions along the way. This will help ensure a smoother real estate transaction. Mortgage and home buying lingo is a big part of this, so be sure to read through a few real estate glossaries before you get deep into the home buying process. The last thing you want is to sign a document that uses terminology you don't understand!

2. Review your debt-to-income ratio.
This ratio represents your amount of monthly payments (bills) compared to your average monthly income. Debt-to-income ratio is one of the things mortgage lenders will look at when qualifying you for a loan. Most lenders will prefer your debt not to exceed 20% of your net monthly income. If your debt is more than 20% of your income, it's time to pay down some of those bills. You'll have a much easier time qualifying for a loan if you do.

3. Set your home buying budget.
By using a mortgage calculator, you can get a pretty good idea of how much mortgage you can afford to pay each month. This directly corresponds to the amount of home you can afford to buy. Once you have an approximate budget in mind, you'll be able to limit your home search to those homes that fall within your budget range. This will save you a lot of time and hassle, while keeping your home search financially feasible.

4. Start saving your cash.
Unless you've just won the lottery, there's a very good chance you'll need some cash reserves during the home buying process. For one thing, mortgage lenders like to see that you've got some money saved for your settlement / closing costs. Secondly, the additional cash will come in handy for moving expenses, furniture purchases, home insurance, and all the other compiling costs that go along with buying a home.

5. Review your credit report.
Order a copy of your credit report and look it over for errors, inaccuracies, or anything that just seems odd. This is one of the first things a mortgage lender will do when considering you for a loan, so it makes sense to conduct your own review first. The easiest way to obtain copies of all three reports at once (from Experian, TransUnion and Equifax) is to visit www.AnnualCreditReport.com.

6. Fix credit errors quickly.
If you review your credit report and find something that doesn't seem right, go to the company's website who produced the report (TransUnion, Equifax or Experian) to submit a correction request. These companies are required by law to examine any reported errors on credit reports, and to correct them if necessary. But the process can take time, so you want to stay on top of it to resolve it quickly.

7. Get pre-approved for a loan.
During pre-approval a mortgage lender will review your credit report, income and overall debt to determine how much of a loan you qualify for. With a "pre-qual" letter in hand, you can be more confident about your buying power in the real estate market. It also shows sellers that you're serious about (and capable of) buying a home. This can be an important factor if the seller receives offers from multiple buyers, as they will likely consider those who have been pre-qualified above those who have not.



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Home Buying Website Checklist - 7 Sites Worth Saving

The Internet can help home buyers find the information they need to make smart financial decisions. But finding the right websites can take hours. The following list of essential websites will save you time and energy.

AnnualCreditReport.com
Long before you start looking at houses, you need to look at your credit. Mortgage lenders will analyze your credit, so you should do the same. You can start by requesting copies of your credit report from all three credit-reporting companies: Experian, Equifax and TransUnion. According to the Fair Credit Reporting Act, you are entitled to one free credit report per year. To request your credit report from all three companies at once, visit the website listed below. www.annualcreditreport.com

Mortgage101.com
If you need to brush up on your mortgage knowledge or use an accurate mortgage calculator, this is the website for you. Mortgage101.com is loaded with helpful tools, information and advice. Here's how the owners describe the site: "Mortgage101.com is a leader in educating online consumers about the mortgage process ... Developed in 1996, the website is visited by over 750,000 consumers monthly, connecting them to an online network of over 700 mortgage companies." www.mortgage101.com

Interest.com
Interest.com provides news, articles tools and calculators -- all pertaining to interest rates. Here's how the owners describe the site: "Interest.com is a trusted resource where you can learn about all aspects of personal financial products, and comparison shop financial products that best meet your personal needs." www.interest.com

Google.com/alerts
Keeping abreast of local real estate conditions will help you make smarter home-buying decisions. With Google Alerts, you can stay on top of your local real estate scene with virtually no effort. Just set up alerts for key phrases relevant to your area (like "buying a home in Chicago" or "Tallahassee real estate"), and you'll be notified via email whenever Google finds a new page with that phrase. Many of the notifications will come from news stories published online, which makes this an easy way to stay informed about local real estate developments. www.google.com/alerts

HUD.gov
The Federal Housing Administration (FHA) -- which is part of HUD -- has been helping people become homeowners since 1934. Their website offers home buying advice, links to related resources and (most importantly) an explanation of your legal rights as a home buyer. Whether you're a first-time home buyer or a veteran, you'll benefit from a visit to HUD's information-packed website. www.hud.gov/buying

NAHI.org
Home inspections are one of the best investments you can make during the home buying process. You'll only pay $300 to $500 for the inspection, but the peace of mind you get in return is priceless. To find a certified home inspector in your area, the best place to start is the official website of the National Association of Home Inspectors. www.nahi.org

HomeBuyingInstitute.com
If you're a first-time home buyer, you'll want to research the entire home buying process so you can have an idea of what to expect. There's one website that offers a good overview on every part of the home buying process, and that's the Home Buying Institute. www.homebuyinginstitute.com

* You may republish this article online as long as you keep the hyperlinks active.


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First Time Home Buying - Seven Steps to Success

Your first-time home buying experience can be stressful and chaotic, or it can be smooth and easy. The difference comes from having a solid plan and knowing what to expect.

The following checklist will help make your home buying process a smooth one:
Step 1. Review your credit and finances.

Mortgage lenders will put your credit and finances under the microscope. So before you begin the home buying process, you should review these things for yourself.

Start by requesting a copy of your credit report from the big three credit agencies -- Equifax, Experian and TransUnion. Review your credit report closely for errors. If you find an error, work to correct it right away, as the process takes time. For instructions on correcting your credit report, refer to the websites of the three agencies.

You should also review your finances to determine how much of a home you can comfortably afford. Use an online mortgage calculator to determine monthly payments based on total price. This will give you a rough idea of where your comfort zone lies.
Step 2. Learn about mortgages.

Once you've reviewed your finances, credit and purchasing power, you should start researching the different types of mortgages. Each type of mortgage has its pros and cons. Finding the one that's right for you will depend on many factors, such as how long you plan to own the home, how much you can afford to pay up front, etc.

When reading about the different types of mortgages, pay close attention to any sentence that starts with "This mortgage might be a good option for you if..."
Step 3. Visit HomeBuyingInstitute.com

At HBI, you can learn about the home buying process in depth. HBI is the Internet's largest library of home buying tips and advice, and best of all it's free!
Step 4. Make a wish list.

Now that you have a better understanding of the financial side of things, you can begin to create a home "wish list." Write down all the things you want from a home. Include the size, features, location, etc. Categorize each item on the list as a "need" or a "want." This list will save you time, narrow down your search, and help you stay focused.
Step 5. Find a real estate agent.

Even with all of the home buying information available online, it's a good idea to hire a professional real estate agent. When you consider how much money you'll pay for a new home, an agent's fee will seem miniscule by comparison. Combine that with the peace of mind you get from having professional guidance, and it's even more apparent why you should use an agent.

To find an agent, start by asking family or friends if they can refer a local agent they were happy with. If that doesn't produce any leads, try using search engines or the websites of well-known companies.
Step 6. Get pre-approved for a home loan.

Pre-approval from a mortgage lender will help you in several ways: (1) It will reveal how much you can realistically afford. (2) It will help you identify credit problems early on in the home buying process. (3) It will show sellers you're serious about buying (which can be helpful when there are multiple buyers / offers).


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The Home Buying Process: What Steps To Take

There are several steps to take in the mortgage process. The following is a list of the best steps to take in order to ensure a smooth and simple transaction.

1. Get Pre-Approved First

During the pre-approval process all the information necessary to complete a mortgage transaction will be collected. A pre-approval is substantially different from a pre-qualification. A pre-approval is the process of actually getting approved for a mortgage without having an actual property picked out yet.

Having a pre-approval helps substantially and will also help in negotiating with a seller. After all, a pre-approval tells the seller that your offer is already approved and informs them that you are ready to move forward with the purchase.

2. Making Verbal Agreements

There is simply no such thing as a verbal agreement in Real Estate. If there is something that you would like the seller to agree to, make sure they agree in writing. If there is a verbal agreement made, there is no feasible way to prove that that agreement was made. On the sales contract make sure everything that you are requesting is either agreed to or denied.

3. Find Your New Home

Now, with your pre-approval letter in hand it is time to search for your new home-to-be. Look at several properties, even if the first one you see seems as though it may be, "The one." Once you have chosen your new home write a sales contract and give a deposit. Then forward the sales contract to your broker to accompany the rest of the documentation you have provided. Due to the fact that you already have a pre-approval the loan process should be relatively quick.

4. Lock in Your Rate

It is important to notify the mortgage company that you would like to lock in your rate. Once a rate is locked you have a certain amount of time to close. You can lock a rate for 15 days, 30 days, 60 days, and in some cases 90 days. Once you have locked the rate, you are guaranteed that the rate will not fluctuate.

You also have the option to float the rate. If you float the rate and the rate goes down you could then lock at a lower rate. If the rate goes up you would be subject to a higher payment. It is always suggested that you lock the rate due to the volatility of interest rates. You may ultimately have to pay a higher payment if you decide not to lock your rate and rates increase.

5. Get a Professional Home Inspection

It is always wise to have a home inspection done. A home inspection is done by an independent home inspector. A home inspection involves the home inspector going through the home prior to purchase. In some cases a house that looks beautiful from the outside may have some underlying issues that may be unseen. It is important to know ahead of time if there are any issues with the property.

A home inspector will make sure all of the outlets work, that there is no water damage, and that all of the appliances work. They will assess all of the homes mechanical systems and make sure everything is in working order. They will also let the home buyer know of any current issues or any items that could become issues.

6. Close on Your New Home

Get a copy of all of the loan documents prior to closing. It is important to be able to read through all of the documents as time may be limited during the closing. Always call your broker ahead of time with any questions. Never close on a property without having ample time to review the closing documents.

After reviewing all of the documents set up a closing with the seller and your attorney. At the closing table make sure you have all the required checks and documentation. You should receive a checklist prior to closing. Remember, never sign anything you do not understand, and ask plenty of questions to make sure you understand.

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The Home Buying Process For The First Time Buyer

It is much better to pay a home mortgage loan and build equity than it is to rent and pay someone else's home mortgage loan for them.

By purchasing your own home you are investing in your own future. The possibility of owning ones own home is easily within reach, if there is someone there to help.

When buying your own home there are many programs specifically tailored to meet your needs.

The US government insures many of these programs which in turn reduces the risk for a lender. Due to the reduction in risk lenders are extending more credit to first time buyers than ever before.

In 2005 40% of home buyer's were able to finance their home mortgage loan with no cash down. This dramatic increase is due to government subsidized loans. Stop paying another persons loan and begin earning equity in your own home.

The best place to start is by getting a pre-approval. The best thing one can do is have a friendly experienced mortgage company to help you through the process. There are several steps that one should analyze as a first time buyer. All of these steps will help you in during your first home purchase and first home mortgage loan.

1. Get an idea of what you can afford

There are several factors, that when combined, will tell one what is affordable as a housing expense. It is best to contact a mortgage broker to help with the calculations.

Some of the criteria include, but are not limited to: income, current expenses, credit, down payment, interest, job stability, payment history, loan rate, loan term and closing costs.

2. Know your rights

You should receive a copy of a Good Faith Estimate or GFE. You need to know what the fees are associated with the home loan and the total cost of interest to you. These are called the closing costs.

Although getting a low rate loan is great, one has to realize that the closing costs have an effect on the annual percentage rate. The annual percentage rate is different than the interest rate. The annual percentage rate is a calculation that includes the interest and the closing costs.

It is illegal to be discriminated against based on your sex, creed, race, age, sexual preference and several other issues. You are entitled to know why you were not approved for credit if that is the case.

3. Shop around

There are tens of thousands of lenders and brokers in the United States. Find someone you are comfortable with. A lot of people do not realize that when one goes to a lender they can only take advantage of a program that the specific lender offers.

By utilizing a broker you are able to take advantage of the wholesale purchasing power of that broker. A broker can generally save money from what a lender would actually charge.

4. Understand the programs available to you

There are several government insured loans that can help to relax the requirements needed to get a home mortgage loan. Last year 40% of home buyers purchased their new home with no money down. This dispels the myth that one needs to put money down in order to purchase a home and get a home mortgage loan. FHA, VA, and HUD are three government insured loans.

5. Shop for a home

Finding the right home is a very important process. There are more factors involved than the home itself. Look at the school systems, the emergency service personnel, and the town or city government. Make sure the home you pick is in the place you want to live as well

Make sure you look at more than one home. Even if your first impression of the first home you look at is "This is the one!" take a look at a few more just to make sure. This, for most people, is the biggest purchase they will make in their entire lives. Take your time and be sure about the right home.

6. Make an offer

When making an offer make sure everything is put in writing. What items you would like included. Things like curtains, blinds, fixtures, chandeliers. All of these things should be listed on the purchase agreement to make sure you are getting what you requested. Simply because you place an item on the purchase agreement does not mean the seller will agree to it. It does mean that it will at least get addressed and will be factored during the negotiation. Make sure you make the sale contingent on a home inspection and have everything put in writing.

7. Have a professional inspect the home

Hire a professional home inspector. The home inspector will go through the home and make sure the home is in good condition. Although a home may look beautiful from the outside, there could be some underlying issues that would change your opinion. The home inspector will make sure all of the mechanical and electrical systems are sound and will also make sure there is no damage from water, rodents or insects.

8. Shop for home owner's insurance

There are plenty of insurance companies out there. Just like auto insurance, the premiums can vary greatly between companies. Check several companies and make sure you are getting a good price for the coverage you need.

9. Close on your first new home

When closing on a home it is very important to read everything that you sign. It is important to get copies of the documentation prior to closing so you can go through them. You need to be able to address any concerns prior to the final signing date. If everything is in order, receive your keys, and move into your new home.


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7 Shortcuts to Internet Home Buying

Searching for a home is becoming easier every day with more access to web sites across the country Realtor.com is the king of real estate listings. There are real estate company sites such as ColdwellBanker.com and Remax.com where you can access the local affiliates and all their listings in the US, Canada, or International. Or a little back door play is to go to the state board of realtors where they list all the local realtor boards and the local MLS sites.

1.Realtor.com – The number 1 real estate web site bar none. It is comprised of all the local MLS realtor board listings. It has all the visual and virtual tours and more photos than the local MLS systems allow. Local real estate agents will pay to get good positioning on the webpages for advertising when their local area is requested you see them first or at least in the top six. You can also request information about any of the listings on the site and you will normally receive a response within 24 to 48 hours from the better agents. One draw back is that realtor.com is sometimes 3 to 5 days behind the actual listing date.

2.ColdwellBanker.com – The number 2 real estate web site. Has easy access to its real estate listings around the world. The “Personal Retriever” feature allows you to enter in your criteria and will notify you of any updates or new listing you can select to have the emails sent daily or weekly. Coldwell Bankers “Lead Router” system is state of the art in high tech features when you request information on any of their listings your request goes one stop and then directly to the agent’s phone who listed the home. During normal business hours you should get a return call within minutes with all the up to date information directly from the listing agent. No other real estate company or lead source has anything that approaches this system.

3.Remax.com – The number 3 real estate web site behind ColdwellBanker.com. Still has a long way to go your basic site allows you to search listings has local information available from the local franchise sites. Doesn’t approach anything like the “Lead Router” or “Personal Retriever” of ColdwellBanker.com. You can get easy access to their Remax listings.

4.Realtor Pay for Leads Sites –These companies sell you to real estate agents and mortgage brokers. You log on to the web site select the city and the zip code where you want to buy or sell a house and enter all your required personal information. The agents who have paid for you at $200, $400, $600 per month or $40 to $80 per lead decide based on your zip code and price range if they want to work with you in buying or selling a home. The pitch to you is that you pick the agent and there is a little truth to that because you do get to chose between 2 or 3 agents. The fact is that many people filling out all this personal information don’t get to choose an agent at all. The agents don’t take the leads because you are either buying or selling in the wrong price range or zip code. Its one of those little steering or redlining things that slips under the federal and state government’s radar.

5.Realtor Association and MLS – Searching local realtor associations by entering a search by state for realtor association this will bring up the state association and all the local associations within the state. Then you will have access to the public side of the local MLS. Some are now directing you to Realtor.com to see the listings.

6.All the Other Sites – Miscellaneous sites, sale by owner sites, agent sites, smaller real estate company sites, local company sites all have useful features but can’t give you everything you are looking for.

7.Your Real Estate Agent - When you get down to working with an agent, the internet savvy agent will have all you need. They will set you up on a VIP Buyer or Seller program very similar to Coldwell Banker’s “Personal Retriever” and your access to your agent will be better than “Lead Router” because you will have all of the agents contact numbers.

Searching for your home on the internet can be easy if you take your time and don’t get sucked into any on-line site that sells you and your information to the highest bidder. Remember local Chambers of Commerce, School Districts, and City web sites have great information about the local area. Keep a file in your favorites of all the websites you find useful.




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