If I'm a first time home buyer how do I do it?

Question

I found the perfect home but how do I go about moving forward with this home? I'm always confused when it comes to things like this.. I rent now and ah I am wasting so much money1!!!!

Answer 1

First of all, have you been pre-approved for a loan?  If not, that is the next step.

Ask your friends and co-workers about a good lender and go to them.  You can even look in your phone book and hopefully get lucky.  (You can apply at a couple of lenders to see who will give you the best deal - the best % down, the best closing cost help, the best loan terms, the best interest rate...)

After you have lending secured, go to a real estate agent.  Yes, they charge money, but it is included in the price of the home.

The key is to be VERY comfortable with your lender and your agent.  After you have both of them, they will tell you exactly what to do next, hold your hand, and walk you through every step.  You might want to ask your real estate agent what costs are included in buying a home.  There are home inspections ($300), termite inspections (the seller normally pays for this) the survey ($400) you could negotiate the seller pay for this.

Remember, you are the one with the all the cards in this market.  Make sure you get EXACTLY what you want, and don't let people know that you "have found the perfect home".  If they can't make you VERY happy buying that home, there are more perfect homes out there.

Answer 2

You need to do two things.

First, make sure you can get a loan for the house, keeping in mind you’ll need to meet your lender’s down payment terms. Shop a few different lenders to see what loan programs they can offer you.

Fingers crossed you haven’t had the listing agent show you the house yet. Assuming yo haven’t, ask friends & family who have purchased homes in the last couple of years to recommend a *buyer’s* agent. They’re paid from the listing agent’s commission to represent your interests in the transaction. They basically hold your hand and walk to you through the process, helping you negotiate & understand what’s going on throughout the transaction.

If the listing agent did show you the house, chances are if you now want your own representation (as opposed to working on your own), you’ll have to pay an agent to work for you because the listing agent can claim to be the cause of the sale.

Answer 3

YOu sit at a table with the seller. She signs to deed.  YOu put your money on the table. She slides the deed to you while you slide the money to her.  Couldn't be easier. If you are borrowing the money, you give her the borrowed money.

With house prices dropping 15 percent in the last 6 months, you were a genius to have rented. /