First research your financial situation. You have to know how much money you can afford to spend on a mortgage payment per month. Once you have established a maximum amount that you can afford to allocate on a mortgage payment, you can then start looking for a home.
This is by far the most fun part of the process. As you look for a home, make the determination if this is a house you will want for 3 years, 10 years, or more. Is this for you or for you and a family? This will determine not only the size home you need, but the type of neighborhood and mortgage you will choose. If you decide on a start up home, you may choose to live in a more Hip, up and coming neighborhood, with the hopes that your home will appreciate enough to allow you to move up in home size and neighborhood prior to starting a family. And if you plan on moving relatively soon, an adjustable rate mortgage may make more sense than a traditional one.
Once you find that perfect home, research the neighborhood a bit, How much to homes go for there? What is the average home appreciation in the past 5 years? Are there any government or commercial projects planned (new parks, new malls, prisons)? What is the crime rate? Do most people own or rent? Most of this data is available on local city or county websites. All of this information gives you an idea of if the neighborhood is moving in the right direction, and if it is a good fit for you.
Once you have made a bid on a home, and been pre-approved...
Now you need a mortgage broker...FHA loans are typically the easiest way to buy your first home, they require little down payment and many communities offer FHA classes which will lower your mortgage interest rate. Once your finances are in order, you will need to find an insurance company and begin the process of finalizing the purchase.
The most important part of purchasing a home is getting a good inspection! Hire a home inspector who is familiar with the age of home you are buying, and those who have a background in structural engineering are usually the best. The last thing you want is a house which is about to slide off of its foundation.
Once inspection items have been resolved, and your loan is ready to go, it comes down to signing documents until you can't hold a pen anymore.
· 1 decade ago