Step-One: Determine your price
To determine the home price you qualify
for, you can work with your real estate agent, Jan Kifer, or find
a mortgage lender. Jan works with several lenders and will help you
through the qualifying process. If you choose to find a lender on
your own, make appointments with two or three before selecting one.
Make sure you are comparing closing costs as well as interest rates!
After you know the home price you qualify for, revise your ideal home
list so you won't waste valuable time looking at homes outside your
price range. You can also decide on the type of mortgage you want.
With a 15-year mortgage, you build equity faster, but your monthly
payments are higher, so you would probably qualify for a less expensive
home. With a 30-year term, there's is more interest write-off on taxes,
but a smaller principal reduction for the first 20 or so years. An
adjustable-rate mortgage (ARM) may fit your plans if you are assured
your future income(s) will increase accordingly. This loan starts
with lower payments in the early years, with increases in later years.
Step-Two: Engaging a REALTOR
A real estate professional can be very
helpful in this process. Jan Kifer is knowledgeable of the home purchase
process, and knows the city and the neighborhoods. She can tell you
if certain items on your list will be difficult to find in resale
homes. Jan will also walk you through the qualifying steps with a
lender. When the size, location, and price range of a home are known,
these elements can be entered into an MLS (Multiple Listing System)
computer. The MLS is a database containing thousands of properties
for sale, and is continuously updated with new and sold listings.
Jan will also know what homes have sold in the past 90 days, how long
similar homes were on the market, and the difference in the list and
sold price. This will help you when making an offer on the home your
choose.
Step-Three: Scouting for a home
Generally, people look at 6 to 12 homes
before making a final decision. When you are looking at many
homes in a short time, it is easy to become confused about floor layouts
and amenities in each home. Although you want to concentrate
on looking for items on your "ideal home list", you will
need to also look for anything which could be a negative factor affecting
your enjoyment of the property, as well as resale value in the future.
You might find it helpful to make notes while you are looking at each
home.
Step-Four: Making an Offer
When you have narrowed your search to
two or three homes, you will want to inspect them more than once,
possibly on different days and at different times of the day.
Don't let anybody rush you. Now is the time to decide which
home has the most positive features for your family. Your offer
may include certain conditions of inspection, items you want the seller
to fix prior to the sale, or items you feel should stay with the house
that were not offered by the seller.
When you have chosen the home you want,
it will be tempting to throw away all you lists. But hold onto them
for a while. Your contract offer on a home may or may not be accepted
by the seller. Additionally, another offer may be given to a seller
at the same time as yours, or negotiable items may be a problem. The
seller chooses which offer to take. Jan will guide you through this
process successfully. If it becomes necessary, it is easier to go
back to the lists already worked on than to start over.
Keep in mind that the more you know about
the home buying process, the easier it will be.
