Buying a House

There are a few key items to consider when you are looking to purchase a home, townhouse or condo.

Step 1: Figure Out Your Price

First you need to know how much you can afford to spend. How much money do you have toward the down payment and closing costs? How much will you be able to afford as a monthly payment? (Don’t forget to include taxes and insurance in that number.)

Step 2: Find a Realtor

Make sure that you are working with a reputable realtor that you feel comfortable with. Remember, this person is working for you; it is their job to make sure that you get the best deal.

Step 3: Get Pre-Approved

There are many, many kinds of mortgages available. Again, the most important thing is to know what you can afford and how much money you have to put down.

If you don’t have 10% or 20% to put down you may want to consider an FHA or a similar loan with little or no money down. FHA loans usually require a minimum of 3% down.

A conventional mortgage will generally require 20% down and can sometimes offer a lower rate. This is a great option if you have the money to put down.

Your best option is to shop around for the best mortgage and mortgage rate that is available for you.

Step 4: Find a Home

Search for the home that’s right for you. When you think you’ve found it, be sure to get a home inspection. This is the best way to ensure that you are getting a home that is up to code and that there are no hidden problems. Buying a home is a huge purchase — don’t settle for one that you don’t feel 100% certain about.

Step 5: Closing Process

Closing on your home is a very expensive process. You may want to consider taking a look at the costs and talking to your realtor about saving some money there. If you push hard enough they will absorb some of the costs.

Also, don’t be afraid to ask for a seller’s assist. This is when the person selling the home will help with paying a portion of your closing costs. Most sellers are willing to do something if you ask.