10 Rules to Peaceful Homeownership
If you have finally decided
that it is time to buy a home, you may wonder if there is a guide to help you get through the
are 10 steps to successful home ownership that will help you along the way.
The first thing you need to do is make sure that you are really ready to purchase
a house. You
need to have a steady and stable income with a job history of two or more years. You also need to have enough
money already in the bank for the down payment and your debt to income ratio can't be too
high. If your
bills take less than 30 percent of your income, then you are on track.
should shop around to find a realtor who can work well with you and will help you find what you are looking
commission for most realtors is negotiable, so find a realtor with a commission you can
sure you are able to communicate well with him or her and find out if they are readily available to help you
through the process and answer any questions you may have.
Go to your current banking institution and get pre-approved for a home
want to be ready in case the seller requires you to qualify for a loan before he stops showing the house to
other people and accepts your offer. Once you find the house you
want, you will have to go through the formal loan process.
Once you are pre-approved for a loan and know about how much you can spend, it is
time to start looking for that house.
You will work with your realtor to find homes in your range and they can even help
you find contact people who are selling their homes on their own without a realtor. Your realtor can tap other
realtor's listings to give you the full market in the area you wish to purchase a home.
Now that you have a good feel for the houses that are out there, it is time to
make that choice. Be sure to choose one that you can easily qualify for and afford the payments
on. If you
purchase out of your range, you may end up defaulting later with a bad credit mortgage. Sometimes your realtor can help
negotiate and bring the price down, but if that won't work, you should keep looking for a less expensive
6. As soon as you have
chosen a house, you can work with your loan officer to start the official loan
application. Because you already prequalified, you may only need a few more items to complete the
Once the loan application is in the works, you need to make an official offer on
the house. Your realtor will write up the contract for you and present it to the home
Once you have a loan going and have an offer on a house, you will need to shop for
insurance that covers the replacement value of the house.
Once the seller has accepted your offer and the loan is processed, you will go to
a title company to close the deal.
Both sales of new homes and mortgage refinance closings usually take place at a
title company where the agent will help you understand what you are signing and answer your questions as you
10. It is a good idea to start out
with a payment you can afford so that you don't eventually end up in a foreclosure
situation. You may be able to use mortgage refinancing down the road if the interest rates go down,
but you can't count on that happening because interest rates may just as well go up. Keep making your payments on
time to avoid these kinds of problems.