For most home buyers buying a home seems to be a complicated process, but not if they are aware of the step by step process. Buyers can successfully find their dream home and enjoy the benefits of home ownership or they can find great investment opportunities just by following the next few steps.
The first step is to find out how much they can afford base on their monthly income and expenses, getting pre-approved for a loan is where everyone should start. There are different types of loan programs (the FHA loans offer low down payment which is currently 3.5% and are a good option for first time home buyers). Those that are willing to put a higher down payment can consider getting a conventional loan. The lowest amount of down payment for a conventional loan is 10%. Buyers that are willing to put 20% down payment will save on the mortgage insurance. The next step of the home purchase process is to choose a real estate expert of their desired area. Finding a professional who is aware of the daily changes in today's market is the most important part of step number two. The right agent will ask the clients though provoking questions about what is important about purchasing a property to them. It is the agent job to help the home buyer understands the reason of purchasing a property. Most people don't know the answer of this important question and it is hard to move to the next step when you haven't completed the second one, yet. Once the home buyers are aware of the exact criteria that best fits their needs they can start looking for their dream home. Finding the right home is just a small part of the home buying process. Once the home buyers like a home they have to take an action. Putting an offer on a property is not that hard when you have the right real estate agent helping you. Once the offer is accepted it is time for the buyers to learn everything about the property. In most cases they have seven to ten business days to perform inspections. A great, reliable agent has different home inspectors that he/she can recommend to the clients. Making sure that the property is in a good condition is very important especially for those clients that don't like to do any work on their new home. The next step is finding the right home warranty company. Most of the companies cover the same with few exceptions. Even if the price is higher it is important to get a home warranty that is reliable. The home buying process does not end here. During the home inspections period the escrow company works on making sure that the new owner will acquire a property with clear and insurable title. In the same time the loan officer sends the loan paperwork to the processing and underwriting departments. Following the steps is easy when you have the right person guiding you.
Please don't forget to ask about the tax credit of up to $8,000, which is now available for qualified first time home buyers purchase a principal residence on or after January 1, 2009 and before December 1, 2009.