Tips and articles about buying a home, of interest to prospective homeowners. Learn about various options and issues to keep in mind when buying a home.
Prepare for Closing Day!
After the searching for a home is done, the negotiations have been completed, the house has been inspected, and the mortgage has been applied for and committed to, the focus suddenly turns to the Closing, Settlement, or Escrow as it is known in some localities. For simplicity, we will refer to the process when it all comes together and you finally own the home as Closing. An understanding of the elements of and players in the closing, as well as a concise preparation for it, will eliminate many nervous hours as the day approaches.
Your Final Inspection Can Head Off Problems
At some point (shortly before the date of final closing) it will be necessary for you to make a final inspection of the house that you are purchasing - a final walkthrough.
Protect Your Investment with a Professional House Inspection
Depending on the type of financing you choose, there should be either two or three separate inspections of the home you want to purchase. The first should be your own basic inspection (see the bottom of this page for what to look for), the second should be a professional whole-house inspection by a reputable person. Should you select a government loan (FHA or VA), the third inspection should come at the time of the appraisal, which to some degree amounts to a "mini-inspection." Do not, however, rely on this appraisal as your only inspection of the property!
Issues to Consider When Insuring Your Mortgage
When purchasing a new home that requires a mortgage, many consumers default to buying their life insurance from the bank or mortgage company. This type of insurance is called 'mortgage life insurance'.
Careful Planning Can Mean a More Comfortable Mortgage
Don't build yourself a mortgage mountain!
It's fine to want the best home you can afford, but be certain that you can comfortably afford it. Although you may find certain mortgage lenders who will stretch your qualification ratios (the ratio of your total mortgage payment to your total income) the traditional ratios - the mortgage payment as 28% of your income and the total of your mortgage payment plus your monthly debt payments as 36% of your income - are good basic guidelines.
Issues to Consider When Choosing a Mortgage
Choosing among the houses that may be available is hard enough - then you need to choose from the myriad of mortgages that are offered in today's market. So many decisions! Take heart, though, since although there are hundreds of different mortgages available, they fall into a few basic varieties. Some may fit your situation perfectly, while others may be unwise or unattainable. By narrowing your choices, the process of picking the right mortgage becomes easier.
Mortgage Prequalification & Preapproval Can Make Your House Buying Process Easier
Why get prequalified and then preapproved for a mortgage before you begin your search for a home? Because three people will benefit from your preapproval: you, your agent, and the seller from whom you eventually buy a home!
Take the Mystery Out Of Real Estate Sales Contracts
Once the perfect home has been found, it is time for the house buyer to take the step that makes many of us tremble with fear: the sales contract. To take some of the mystery out of the house sales contract, we will discuss what the contract involves and the components of most housing sales contracts.
Avoid Common House Buying Mistakes!
Buying a house covers a lot of ground - including legal, financial and emotional considerations. To not educate yourself and learn from the mistakes of others only sets you up to be at best disappointed and at worst finding yourself living in the wrong house. We have listed some of the most prevalent - and potentially dangerous and expensive - mistakes made by first-time home buyers.
Understand the Art of Negotiation BEFORE You Make the Offer!
Real estate is one of the few places (along with the automobile business) in North American life where some form of negotiation is the rule rather than the exception. Just because it is the norm, however, does not mean that most people are proficient at it. Sure, most folks feel they are the best negotiators in the world, but in reality, it is a learned art. To be good at negotiating takes a keen understanding of the process -- and you want that understanding before you begin making offers on homes.
Preliminary House Inspection
The purpose of your personal inspection is only to eliminate those properties from consideration that have too many obvious deficiencies. It is not designed to take the place of a professional house inspection. If a house passes your initial "tests" (location, wants and needs, etc.) you will probably want to schedule a second showing where you can spend an hour or so doing an inspection of the house.
Pros and Cons of Owning a Single Family Home
By far the most common form of housing in North America is the single family detached home - ranging from 600 square foot bungalows to 6000 (or more) square foot sprawling mansions. The primary distinguishing factors that determine a single family dwelling are that it sits on its own piece of land (which is sold part and parcel with the home) and it is not attached to anyone else's residence. With single family homes, your home pretty much is your castle. Subject to neighborhood and subdivision regulations and ordinances, you can do with it as you wish. Want a different exterior color? Usually you can accomplish that (taking into account the fact that the neighbors may not be receptive to a purple house with ecru trim). Need more room and want to add on? Subject to the codes of your jurisdiction, you may be able to expand your living space.
Condominiums: The Basics - Pros and Cons of Condominium Ownership
The easiest way to understand the idea of condominium ownership is to see it as an apartment you own (in fact, many condominiums are apartments that have been converted over the years). Your ownership extends inward from your interior walls, floors and ceilings. In addition, you are a partner, with all the other owners in the complex, of the exterior structure (the foundation, exterior walls and roof) as well as any common areas and amenities (such as swimming pools, clubhouses, tennis courts, play areas, etc.)
Townhouses: Pro's and Con's
Townhouses often make an excellent "middle ground" between a detached single family home and a full fledged condominium because, to some degree, they offer attributes of both.
Pros and Cons of Buying vs. Renting
If you are considering buying a house, one of the first decisions you need to make is whether buying a house instead of renting one is the right direction for you. Since owning a home is the "American Dream", many people simply assume that it's always to their advantage to buy a home. For most of us, it is, but take a moment to review the following lists to see how your situation fits.
Understand Real Estate Definitions!
Property owners who want to put a house or other structure on undeveloped land or subdivide large parcels of land into smaller lots must get permission from their local governmental jurisdiction (usually city or county) to make changes or additions to their property. This happens in the form of individual work permits, which must go through varying steps from application to review and hopefully (finally!) approval.