How to Buy a House

Tips on buying your first home

1. Your first step should be cleaning up and solidifying your credit. Pay off credit card debt, cut up cards you don’t use and settle any outstanding delinquencies. After you’ve taken these steps, purchase a credit report. Make copies of the report and be prepared to hand it out to realtors you meet.
2. Begin a search for a realtor, and settle on where you’d like to live. Be prepared to give the realtor an exhaustive list of the amenities you’re looking for in a house. Scout neighborhoods you’re interested in, and learn about open houses, as well as nearby schools, grocery stores, restaurants and other businesses. Be sure to talk to the realtor about the price range you need to stay in for your budget.
3. Start seriously examining houses. Do you want a low-maintenance property, or a fixer-upper? Calculate how much you can afford in mortgage payments and be prepared to hand over a hefty down payment on the house you like. If you can afford to put down 20%, you can afford mortgage insurance. Some loan programs advocate no money down mortgages, but you will pay more in the end.
4. If you find a house you love, quickly prepare an offer (or multiple offers) along with your realtor. Your realtor should help you figure out how close to the house’s asking price your offer should be and how to do a counteroffer if your first offer is rejected. Do not be dismayed if your first offer is rejected. It is quite common.
5. When you put in your bid and it’s accepted (i.e. you’ve signed an offer), you are officially in escrow. Excrow is the time when you’ve committed to buying the house while your mortgage lender arranges financing and the final number for your mortgage. Escrow usually lasts anywhere between 30 and 90 days, so be patient.
6. Closing escrow is your final step. You’ll sign all papers related to the property, including documents detailing arrangements for mortgage payments. You’ll get the deed and the title to the house, as well as the keys!

Caution

Be sure to have the house (and neighborhood) fully inspected. Have reports done on radon, hazardous materials, crime statistics and dry rot.

Where to buy a house

Check out the realty web sites below for a great start to finding a new home.

REALTOR.com has over 2 million listings for homes for sale across the United States. Search by city, state, zip code, price range, and amenities. You can also enlist the services of a realtor and get mortgage quotes.

One of the most famous names in the world of realty, Century 21 offers pathways to properties for sale by city, state or zip code, as well as Century 21 locations across the country. Financing and selling services are available, too.

Use Yahoo! Real Estate to find not only homes for sale, but also homes for rent. You’ll also find mortgage calculators, realtors, and tools that assist in learning about neighborhoods, foreclosures and schools.