Buying a Home

Closing

Closing is the legal transfer of real estate from one person to another. During a closing, which is held at either the title company’s or lawyer’s office, numerous legal documents are signed and the collection and disbursement of funds occurs. Your real estate agent will be available at this time to handle any questions or resolve any issues that may arise. After closing the property is yours. In order to insure a smooth closing you should.

Your agent can save you time and money by coordinating the necessary documentation with your closing officer. They can work with the closing officer as your consultant to insure thoroughness, accuracy, and timeliness. Making sure that each document is ready and available will enable you to have a quick, easy closing.

How Much Can You Afford

There are some key differences between prequalification and preapproval for a loan that you need to be aware of Loan prequalification is a simple process. It takes into account very basic information regarding your financial status and gives you an amount for which you may qualify. This can be done strictly on a verbal level or electronically over the Internet. The prequalified amount is based solely on the information you provide. In most markets, prequalified buyers usually hold little clout compared to preapproved buyers due to the fact that the information given during the prequalification process is not thoroughly investigated and therefore may be unreliable. Where a preapproved buyer is actually approved for a loan of a certain amount, a prequalified buyer is only told that they might be approved for a certain amount.

Buying a House or a Home?

A house is just that, a house, until someone lives in it. That's when it becomes a Home. There's a big difference. At our house, we always say our home is "well lived in." And, with a family of six, four of them being between the ages of 9 and 15, this house has no choice! Our house, being in the family for over 65 years, is a well seasoned "home."

Who wouldn't love to live in a luxurious home with all the newest gadgets and high tech inventions? Well, I would venture to guess that most of us have thought of it. But, what's really important when you consider buying a home?

If you're a seasoned home shopper you may already have learned from experience what type, location, and price of home is good for your family. Setting some guidelines and priorities is a good way to start the hunt. First, make a wish list. This is a great starting point for anyone and will help get your priorities in order! Knowing what you want or need is half the battle.

This will include some essential questions you need to ask yourself also like, what you can afford?, are you willing to do renovations and how much?, and lists specific needs for your family.

Location, Location, Location...

Location can be flexible for some families, but must be specific for other families. Work, disabilities, and children are just a few factors that can influence location necessities or desires. For instance, if you don't want to commute long distance to work you will need to consider travel time to work. If you or a family member have disabilities that require special treatments or services, you will need to consider travel time to current providers, or consider availability of services in the new location. Local schools, and their reputations, will play an important role in location for those families with children, as well as neighborhood safety.

Affordability

There's no satisfaction in qualifying for a loan that you can't afford! Consider your other obligations and how the new payment will affect your budget.

Sometimes, scrupulous mortgage brokers and lenders don't really consider if you can actually "afford" the loan for your home. They boast that they can get "anybody" a loan. That's easy when you don't really care about the final results. Besides, it's a secured loan, which means, your commitment is secured by your property. They'll simply take your home if you don't meet your commitment. So, be careful. Always use a reputable company for your mortgage needs. They may not tell you what you want to hear, but they'll look out for your best interests.

GinnieMae.gov has a calculator to help give you some idea how much you can afford. Always live within your means to prevent self-created financial disasters.

When you know what you can afford, shop and compare. Hud offers a great home buying booklet at http://www.hud.gov/buying/booklet.pdf, Looking for the Best Mortgage, that answers questions and prepares homeowners for the mortgage shopping experience. There is even a form for you to keep track of home loan comparisons.

Don't be a Victim of Loan Fraud

The Federal Citizen Information Center warns consumers to protect themselves from predatory lenders! Before you make a final decision, take the time to review the 11 Tips on Being a Smart Consumer at http://www.pueblo.gsa.gov/cic_text/housing/loanfraud/loanfraud.htm

When looking for a mortgage, don't forget to ask about specialty loans. You may qualify for specialty loans if:

  • You're a Teacher
  • You are purchasing a home that needs remodeling.
  • You are a first time buyer

HUD answers 'Common Questions from First Time Home Buyers" at http://www.hud.gov/buying/index.cfm

Whether you're buying your first home or growing into a new home, you'll be successful if you take your time, know your priorities, and research all your options!

Happy Hunting. May the "House" you choose become a happy "Home!"

Cheryl Johnson is a mother of four helping herself and others become and remain debt free. Publisher of Simple Debt Free Living the Personal Budgeting and Debt Management site at http://www.simpledebtfreeliving.com - A self-help plan, ideas, and resources for budgeting, debt management, frugal living, and extra income opportunities. Money saving tips For groceries, clothing, gifts, home decorating, and buying a home.

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