You're ready to take the leap and
buy a home here in El Paso, Texas. If this is your first time, you may want to
know what to do to make the process go more smoothly. Here are ten steps you
should go through to buy your next home.
-Check Your Credit Reports and Scores
- You get one free look at your
credit reports annually. Go to AnnualCreditReport.com and see how easy it is to
get credit reports from the three major credit bureaus, Experian, Transunion,
and Equifax. You'll need all three because they each report differently, so you
may find an error at one bureau but not the other two. You don't know which
credit bureau your lender will use so you want all three bureau reports to be
accurate. If you see a mistake, contact the bureau and alert them to the error.
Send a copy of your proof, such as the paid balance.
-Get prequalified - Your lender will "run your credit" to look at
your credit reports and evaluate you for risk. Your income, credit scores,
payment history, revolving debts, obligations such as child support as well as
the type of loan you choose are all factors in determining your interest rate
and other terms of the loan. The lender will also consider how much home you
can buy based on your down payment; smaller down payments mean higher monthly
payments. Last, the interest rate and terms (30-year, fixed or adjustable rate)
will determine what you can afford in monthly payments.
-Make your wish list - Decide where you want to live and how many bedrooms and
baths you'll need. Consider lifestyle -- condominiums offer shared amenities,
with little responsibility. Single-family homes offer more space and privacy,
but much more exterior and yard maintenance. Think about how far you're willing
to commute to work. Make a list with five must-haves and five deal-breakers
that you absolutely don't want. Be willing to compromise if you find a home
with most of the things you want.
-Hire a real estate professional - Your real estate professional should be expert in the area
where you want to live and familiar with the type of home you want to buy. Your
agent has house-by-house experience in your neighborhood and can offer the best
advice on homes in your range. Ask for referrals from people you know who have
recently bought or sold a home or choose an agent in the neighborhood who is
less than five minutes from the neighborhood you want.
-Select your home - No home is perfect, so expect to find a few things that
are disappointing. Try to see past minor flaws such as bad paint colors or old
carpet. Think long-term. Is this the house you would want if it were painted
and recarpeted? Which home best suits the activities and needs of your
household now and in the years ahead? Don't buy more than you need or can comfortably
-Make an offer - Your offer depends on the current market conditions. If a
home has been on the market a long time, you can ask the seller for a price
reduction, repair concessions, and help with closing costs, but if it's new on
the market, the seller is unlikely to accept an offer lower than 95 to 97
percent of the asking price. Ask your real estate professional for advice and a
CMA so you can determine a fair offer price. Be sure to make your offer
contingent on a satisfactory inspection.
-Get an inspection - A home inspection is a professional third-party opinion of
the home's condition. The inspector works for you, so it is his job to point
out problems big and small. He will check age of all systems, note large and
small repairs that are needed, code violations, and so on. Some inspections are
not included, so you will have to hire separate experts to look for pests, or
inspect the septic tank. You need to know what problems and expenses you'll be
facing as the next owner.
-Renegotiate Terms - If the inspection reveals a problem that is more severe or
is not noted on the seller's disclosure of the property, you should renegotiate
terms. Either ask the seller to fix the problem or I recommend asking for a
price reduction so you can repair it with your choice of professionals and get
it done the way you would like.
-Get an appraisal - The bank appraisal determines market value. If the home
doesn't appraise for the purchase price, the bank will refuse to make the loan
unless you increase the size of your down payment or renegotiate a lower price
with the seller. If the home meets the appraisal comparables, the lender will
move toward closing. Pay close attention to the comparables that the appraisal
uses -- they may skew the value in a different direction than you might be
-Go to closing - Once final negotiations are complete, and you've done a
final walk-through of the property to make sure all repairs have been made, the
parties to the transaction meet at the escrow office. This office could be a
title company, real estate attorney, or whatever is customary in your area. All
paperwork is signed by both parties. The lender pays the seller, minus any
liens against the home such as the seller's mortgage. Once all the
disbursements have been made, you get the keys to your new home, according to
Congratulations! You're ready to
move into your new home.
Author:Ana Maria Navarro Phone: 915-820-8484 Dated: December 2nd 2014 Views: 2,197 About Ana Maria: I was born in Cd. Guerrero, Chih. Mexico. Where I finished my elementary studies then I went to Chih...
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