What steps do i have to take to buy a house?

Asked by Daisy Salgado, Lackawanna, NY Mon Jun 13, 2011

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Gerard Carney, Agent, Spring Hill, FL
Mon Jun 13, 2011
Go to a financial institution and get yourself pre-approved, this will give you an idea as to what you can afford in a home.
Find a good Realtor once you have your approval letter
Set down your parameters for what you want, include price, size, number of room, Size of yard and an approximate idea of where you want the home located!
Think about things like how much will commuting cost, Fuel, Electric, Taxes and insurance. Leave nothing to chance, alll the items mentioned cost money above and beyond the mortgage.
Do not stretch you limits to fit into a house but rather make the house fit your needs and your wallet.
The market is very good right now for a buyer! So take your time and look at everything that is out there.
Make sure youu research all the assistance and down payment programs, all the lo interest and no interest loans that many local governments are offering.
Take you time and be picky!
1 vote
Bill Eckler, Agent, Venice, FL
Mon Jun 13, 2011

Consider the following:

1. evaluate your personal budget, accounting for all monthly income and expenses.

2. get pre-approved by a lender, finding what amount, programs, and rates you qualify for.

3. establish a list of search criteria for your home including the qualities and features you desire as well as the negative qualities you DO NOT want the home to have.

4. Study the local RE market. Reviewing real estate magazines, following the classifieds, and attending open houses are great ways to amass an understanding of the local market.

5. Identify a real estate professional with which to work. Serious buyers should work with full time agents. The level of service and agent availability will be important.

6. Making an offer...you agent will be able to guide you through this process "step-by-step"

Good luck,

1 vote
Sandra Pond, Agent, Kenmore, NY
Fri Jul 1, 2011
Everyone has offered very good advice, but I would also emphasize that you use only a real estate attorney and a local mortgage lender in Western NY. You certainly don't want any surprises when it comes to closing!
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, ,
Mon Jun 13, 2011
Thank you Sally - I admit I am not an expert on the real estate agent selection procedure and negotiation considerations, as I've always enlisted the help of a personal friend to buy/sell my real estate (I've been fortunate), so I'll defer to you professionals to provide guidance on that aspect (great idea for a blog post). Personally I think a real estate agent could be chosen at any point in time though, prior to or after getting pre-approved for the financing. Successful experiences can go either way, real estate agent first, loan officer second, or vice versa.
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Sally Grenier, Agent, Boulder, CO
Mon Jun 13, 2011
Shane -- this is great information from a lender's persepctive, but where does the Realtor become involved in your process?

Daisy -- All the other agents gave great info. You need both a great lender AND a Realtor guiding you through the entire process. A Realtor will be working for you as a Buyer's Agent and will be looking out for your best interests and negotiating on your behalf.

Good luck!
Web Reference:  http://www.sallygrenier.com
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, ,
Mon Jun 13, 2011
If you are planning on using mortgage financing...

1. Meet with a loan officer (this can be face to face or over the phone, I do not recommend solely done via email)
2. Loan officer will explain the process to the homebuyer, what will be done at each milestone, when out of pocket costs should be expected
3. Loan officer and homebuyer will verbally discuss the homebuyers situation, including financials, credit and any special circumstances the homebuyer is in (like getting gift funds, starting a new job in a new area, past employment, etc.)
4. Homebuyer will complete a loan application (this is recommended to do with the loan officer "live", not just simply filling out the application and sending it to the loan officer) and credit is checked
5. Homebuyer will provide loan officer documents the loan officer needs (paycheck stubs, W-2's, tax returns, bank statements, letters of explanation)
6. Loan officer reviews documents and contacts employers for any further required verification (for example averaging overtime, commissions, etc. and clarifying start dates if employment has been less than 2 years), including running the loan through the automated underwriting system (be it FHA, VA or conventional). If the loan is "borderline" then the loan officer should contact underwriting to get clarification on how any unique aspects of the loan will be handled, and may even go so far as to send the entire loan file to underwriting to have a conditional underwriting approval issued for a "TBD" property address.
7. Loan officer issues a pre-approval letter letting the homebuyer know they are pre-approved for a certain amount
8. Homebuyer makes an offer and it's accepted after attorney review (in attorney states)
9. Homebuyer or their real estate agent provides loan officer copy of contract terms
10. Loan officer re-runs actual terms/conditions through automated underwriting again
11. Loan officer/processing staff generates the loan application/disclosures for the homebuyer to sign/initial/date/return to the loan officer
12. Loan is sent to underwriting (sometimes the title report needs to come in, sometimes the appraisal needs to come in - YMMV depending on the lender - the title report is ordered immediately, the appraisal can be ordered when the application/disclosures are generated)
13. Underwriting reviews all documents and usually additional documents (called "conditions") are required, such as evidence of homeowners insurance, small items on the appraisal corrected (if needed), amongst a laundry list of possibilities (brace yourself for the underwriter to ask for small items so it doesn't come as a surprise, sometimes it isn't much at all, sometimes it can be a bit)
14. Conditions are sent in to underwriter and reviewed, final loan approval is issued
15. Loan officer informs homebuyer when documents can be prepared and delivered to title/escrow officer or closing attorney ("closing agent" is the generic term) for the closing (usually no more than 2 days from final approval)
16. Closing agent prepares the final settlement statement (called a HUD-1) for lender approval, lender approves, homebuyer goes in to sign final loan documents in front of a notary
17. Depending on the state you are buying in, it may fund/record the day you sign or there could be a few day period after you sign before it funds & records (rule of thumb is if you are east of the Rocky Mountains it's the same day, west of the Rocky Mountains usually there is a couple day delay - but vice versa can certainly be arranged ahead of time).
0 votes
Jessica, , Virginia
Mon Jun 13, 2011
Check this out, 7 steps to buying a home. http://homebuyersblog.wordpress.com/home-buyer-guide/

This blog has everything for the first time home buyer.
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Anna M Brocco, Agent, Williston Park, NY
Mon Jun 13, 2011
If a mortgage will be utilized, start by visiting with any qualified loan officer to determine qualification; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously. Thereafter, consider working with an agent, he/she will be your best guide.
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Elizabeth Bi…, Agent, Key West, FL
Mon Jun 13, 2011
First off you need a good agent and a good lender.You need the lender to tell you how much you can spend and the agent to help you find a suitable property in your price range. They both will tell you to gather up your financial papers including, 2 years tax returns, savings account and other proof of assets and 2 weeks pay stubs. Take this information to the lender and get pre-qualified. You are on Trulia and searching for homes so you have begun the search process. Being an informed buyer is key to finding a home. It is your agents job to provide you with listing information that meets your criteria. It is your job to look over the information, give feedback, go look at the property from the outside, make an appointment with your agent to see properties that peak your interest. Buying real estate is work and can be a very emotional process but it should be fun too. Make sure your agent is a Pro, with nerves of steel, a sense of humor and most of all patience. Good Luck!
0 votes
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