|
Know Your Rights as a Home Buyer
Before you start, there are many laws that protect you from scams, unnecessary expenses, and discrimination in the process of homebuying. Know your rights!
Find out How Much Mortgage Can You Afford
You can save yourself and your real estate agent a lot of wheel-spinning if you take a minute to figure out how much loan you can afford. Generally, a lender will want your monthly mortgage payment to total no more than 29% of your monthly gross income (that's your monthly income before taxes and other paycheck deductions are taken out). You also need to consider current loan interest rates. The lower the interest rate, the more expensive the home you'll be able to afford.
We have many reports on loans that you can read. You can get more help in our Home Mortgage Center section.
Also, we have many useful calculators to help you. Take a look here: CALCULATORS.
Create Your "Wishlist"
Make a home buying "wish list". Focus on the features you want in a home: how many bedrooms, bathrooms, etc. Garage or no garage? What is important to you to have in your new home? Knowing what you're looking for will help you focus your search. And it will help your real estate broker, too.
You might want to read more about creating a "wishlist" in our report here: Home Buyer Wish List.
Find a Real Estate Broker
You'll want to start searching for a broker as soon as you decide to buy a home. Talk to several and find someone you think you'll be comfortable working closely with. Many of your friends and relatives have probably bought and sold their homes through brokers. Ask them who they used and what their experiences were. You can find out which brokers specialize in the kind of home or the area you want by looking in the Yellow Pages or your local newspaper's classified real estate ads. Or drive through neighborhoods and note the names of agents on "for sale" signs. When you talk to prospective brokers, ask questions about the areas and types of homes in which you're interested. Do they seem knowledgeable? Most important, is their personal style a good fit with your own?
Mortgages and Homebuying Programs
Many different kinds of mortgages are available to you. Read about them, and make sure you understand the pros and cons of each. Your real estate broker can help you. HUD and other agencies offer some special homebuying programs. Also, many local governments offer special homebuying programs to help low-income homebuyers. Shop around - you may be surprised at all your options!
|
