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The ABCs of Buying a Home |
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Written by Elizabeth Martin
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Thursday, 25 August 2011 14:29 |
 Congratulations! There is nothing more exciting than looking for a new place to call home. When it comes to purchasing that special property, location is very important. After all, you are going to live there. It is best to have some knowledge about your selected area. Whether this is a new, existing, or even a fixer-upper house, no matter what area you have chosen, the right home is out there. You just need to have patience.
One way to help keep costs down is to look for a house to do your way. Keep an open mind that when you are looking at that fixer-upper you have the opportunity to personalize it to your taste. Also consider that improvements will typically increase the value of that property. This is called "Instant Sweat Equity."
Before you start looking for your new home you should set up a meeting with a local bank or contact an alternative lending institution. There are many options out there for you to choose from today. A local bank offers one-on-one service and gives you a physical place to go and meet with someone.
There are also online lenders that many people have used very successfully. When contacting a bank, schedule an appointment to go in and discuss what its requirements are and ask for a pre-approval letter, which will show the seller that you are able to afford the home. He or she will take any offer you make more seriously, but it will also let you know what you can comfortably afford. A great tool to ask for from a lender is what we call a "GFE" (Good Faith Estimate). This form will give you an idea of what all your costs will be. Having this information is very important to you because it will help give you a true picture of what you can afford. After all, you don't want to get your heart set on a home that you just cannot afford.
A local real estate agent can be a valuable asset in purchasing your new home, so be sure to find one who you are comfortable working with and trust from the beginning. Consider interviewing agents before you make that decision. This is an acceptable practice and will make your working with them an enjoyable experience.
It is important to remember that a buyer’s agent cannot represent you once you have contacted a seller or seller’s agent. Under typical conditions there is no charge to the buyer and the fees are paid from the seller's side.
Your buyer’s agent will be your advocate to complete the purchase of your new home. He or she is able to negotiate with the seller on your behalf for the best possible price and can also help keep everyone's emotions at bay. Keep in mind that selling a home can be a very emotional experience for the seller. After all, it was the place he or she has called home for some time.
Inspections are highly recommended to learn everything about the home as possible, leaving no stone unturned or potential defects undetected. As a major purchase for you, the last thing you want is to find yourself strapped with big repair bills or other potential issues that may have altered your decision to purchase the home. Inspections should be a contingency of the purchase price, meaning that they must be done before a sales contract is finalized.
You, as the buyer, will have the ability to choose an inspector you can be comfortable with; therefore, you will be responsible for those costs.
Keep in mind that, upon entering into a contract, everything has a time limit. It is important to move swiftly and efficiently through the process. As excited as you are to move in, the seller is preparing to move out. Delays can cause unnecessary stress for both parties. Your bank will require appraisals and title searches of your new property- safeguards to protect you.
Now, you’re almost there. The bank will schedule what is known as the “closing”, and it will notify you of any amount of money you need to bring with you to sign the final paperwork and pick up your new keys.
Good luck in your search and don't forget to have fun. Buying a home should be a happy experience, so enjoy looking. Patience and knowledge will guide you through the process.
Welcome home!
Brenda M. Pugh is a PA-licensed real estate agent with Gilroy Real Estate, in Kingston.
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