Process A Buying A House Essay

Your Journey to Home OwnershipBuying a domicile is an exciting process especially if it is your first home. It may be a considerable or short process. But no matter how long it takes you result follow at least four steps passim your journey to home ownership. First, you get out check your credit and examine your finances. Next, you pass on shop for a mortgage lend. Then you will shop for the right house Finally, you will move in. Remember, you or other family members will be like live in your new house for the rest of your lives. That is why it is razzinal to understand the steps in the home buying process. This brochure walks you through with(predicate) the process of buying a home.CREDIT AND FINANCESKnow Your assignIt is non only eventful to feature your credit scores, but to know your credit. Know the basics about your credit before a mortgage lender pulls your credit scores. It is helpful to write out a stocky of your credit history as you know it. What argon y our monthly defrayments? If you redeem been late with payments, write down in the mouth which ones, how often you piddle been late, the current status, and justify what led to the circumstances. Also write down your loan and credit card balances. And explain any collections, judgements, or other delinquencies that you think might chance upon your credit. This way both you and the lender know what to expect when your credit insure is pulled.Know Your FinancesYou must cover some part of a down payment (up to 20% of the purchase price) and some closing be (at least 3% of the purchase price). It is important to know that cash in the bank is not the only source of funds that are refreshing to a lender. Will a relative give you part of your down payment as a gift? If so, arrive at them write a letter stating the amount they will give and include that amount as a cash asset on your loan application.Do you have an insurance policy with a cash value? Do you have a retirement fund? Include a most new-made statement from those policies. These cash assets help you to turn even if the cash is not on hand. If you need to use these sources, your lender will instruct you how to register the withdrawals or have the gift monies transferred when the time comes.SHOP FOR A mortgage LOANShop for the Right Mortgage CompanyFirst, rule if you will use a commercial bank, a direct mortgage lender, or a mortgage broker. The best thing to do is call all(prenominal) one and ask what programs and services they offer. They can answer basic questions without pickings a loan application or pulling your credit. However, be metric about quoted rates. Make sure that rates ore given for the type of loan you are interested in and qualify for. In other words, if you are styleing for a construction loan, dont compare home improvement loan rates.Shop for the Right MortgageOnce you have decided what type of company to work with, they will help you determine the right mortgage program for you. They will defend you with scenarios for both obstinate and adjustable rate mortgages for 15-20-30 year loan periods. They will also present loans for your specific financial and credit situation, for first time homebuyers, and for existing houses or new construction. They will also tell you what loan amount you qualify for, what your down payment and closing cost cash contribution should be, and what your maximal purchase price can be.SHOP FOR YOUR hall placement Location LocationTake a drive around the communities that you are attracted to. find out how close they are to good schools, shopping locations, and other things that are important to you. Be sure to note your commute to work from these areas noting accessibility to freeways and main(prenominal) roads. Once you narrow the areas you like, write down what your home should look like and features it should have how many bedrooms, bathrooms, 2-story or ranch style, older home or newer construction. Once you decid e these factors, you are ready to go shopping.Real nation AgentsReal estate agents can help you find what you are looking for. The MLS allows the agent to plug in your parameters price, style, location, size, amenities and identify several houses for you to look at. The agent will also present your offer to the seller, and help you talk over contract items such as seller paid closing cost or repairs to be done prior to closing.MOVE IN remnantOnce your loan is approved, the house is appraised and inspected, you will meet with a entitle company to sign the mortgage and title documents. You will set aside a copy of a homeowners insurance policy. The seller will provide a transfer of title, a pest inspection, and general safety inspection or occupancy certificate, if required by your municipality. The title company will provide you an insurance policy protecting against old liens against the property. Once all documents are signed, the items are filed with the real estate departme nt in your county, and YOU GET YOUR HOUSE KEYSMoving InRemember to do things like submit a change of address at the post office. And, if you are a renter, give the axe your landlord at least 30 days prior to moving. Also, remember that you will now be responsible for paying property taxes and homeowners insurance. If these items are not included with your mortgage payments, be sure to make billing and payment arrangements right away.RESOURCESFannie Mae http//www.fanniemae.com/homebuyers/index.jhtmljsessionid=JNHAKUJNMMPBVJ2FQSHSFGI?&p=OverviewFreddie Mac http//www.freddiemac.com/corporate/buying_and_owning.htmlFHA http//www.fha.com/VA http//www.homeloans.va.gov/HUD http//www.hud.gov/offices/hsg/index.cfmBankrate http//www.bankrate.com/brm/rate/mtg_home.asp?link=5