Buying a Home or Property

There are often many questions and countless issues to consider when you buy real estate. A knowledgeable real estate agent will help guide you through the entire process of buying a home or property. The agent handles the many details of selecting and purchasing real estate every day. They will help determine the features that are most important to you and figure the price range you can afford. The agent will also explain the different types of mortgages, guide you through the paperwork, and be there to answer last-minute questions when you sign the final papers at closing.

Here are some tips to help you buy a home or property.

Create a "Wish list".
Make your wish list. Focus on the features you want in a home: 2 bedrooms or 3? 1 bath or 2? Garage or no garage? Knowing what's most important to you will help you focus your search and allow your real estate agent to meet your needs.

Buy a property you can afford.
Many mortgage lenders use a simple formula developed by the FHA. The FHA has found that most people can afford to budget 29% of their gross monthly income to housing expenses, depending on total debt.

Understand Mortgages.
Many different kinds of mortgages are available. Read about them, and make sure you understand the pros and cons of each. Your real estate agent can help you.

Home Inspections.
When you make an offer on a home, it's a good idea to make your offer contingent on a home inspection, conducted by an independent authorized inspector. You will have to pay for this inspection yourself, but it could keep you from buying a house that will require costly unexpected repairs. If you are satisfied with the results of the inspection, then your offer can proceed. If you aren't,you may want to negotiate by requiring the seller to pay for certain repairs or asking for a lower price.

Appraisals.
Your lender will require you to get an appraisal of the house you want to buy, to make sure it's worth the money that you're borrowing. You may select your own appraiser, or you may ask your real estate agent to help you take care of that.

Homeowner's Insurance.
Lenders require that you have homeowners insurance, to protect both your interests and theirs. Like everything else, be sure to get insurance that fits your needs.

Settlement or Closing.
Finally, you've gone through the whole process, and you're ready to go to the "closing." Your real estate agent will be there to guide you through everything you need to sign.