Home Buying

From LoveToKnow Mortgage

Home buying can be an exhilarating, exhausting, and expensive ordeal, but there are few things that make people prouder than owning their own house.

Home buying

Searching for a Home

With so many options on the market, from condominiums and ranches to log cabins and mansions, the task of finding a home can be a challenge. As you begin your search, you should decide on a real estate agent who can help you find the right place. It’s important to choose a realtor whom you trust and relate well with, since you will potentially be spending a lot of time together. Be leery of an agent who seems to only show you expensive homes that are out of your price range, however. Since realtors earn their salary from the commission on their home sales, you need to make sure your realtor has your best interests (and not his or her paycheck) in mind.

There are several factors you need to consider when beginning your home buying search, including:

House size

How many square feet and bedrooms you want may be one of the biggest factors when home buying. You also need to consider the size of your family and if you expect it to grow or downsize as kids leave home. While a three bedroom home used to be large enough for the average family, many families now need to use one of the bedrooms as a home office.

Storage space is another important - but often overlooked - piece of the home that you need to consider. If there is no garage, basement, or attic, your spacious home could quickly become cluttered and tiny if you don’t have enough room for all your belongings.

Outside space and Maintenance

Are you an avid gardener with dogs who like to run, or do you spend most days inside? A large yard with mature trees can be a selling point to many home buyers, but it can also be a lot of work to maintain it, especially if you won’t get much use from it. Also consider if you would rather live in an association where they maintain the grass and remove snow. The association fees will need to be figured into your monthly budget, but it may be worth it for the peace of mind of professional landscaping and not having to shovel your own walkway.

Taxes

The amount you will pay annually for your taxes is an important factor when home buying. Taxes can drastically change across county and township lines, so ask your realtor to give you a map detailing the different tax rates. This will help save you from finding the home of your dreams, then realizing the taxes are not affordable.

Location

Realtors like to remind potential home buyers that location is what really matters and that’s usually true, especially if you do not want a long commute to work or you want to be close to friends and family. Keep in mind, however, that more centrally located areas such as metropolitan downtown areas often have higher tax rates.

Home Features

You may want to begin your home buying experience by making a list of desired features you want to find. Take ito consideration items such as new appliances, fireplaces, swimming pools, and the type of heating system.

Price

Despite all the other options, your price range is probably going to be the determining factor in finding a home. Be realistic about how much you can afford to avoid foreclosure later. Make sure you also consider your taxes, mortgage insurance, utilities, and other expenses as you crunch the numbers.

Home Buying Basics

Once you find the home of your dreams, you will need to work up an offer with the help of your realtor. A few years ago, the sellers often had several offers to consider and bidding wars between potential buyers were common. Now, the market has cooled a bit so home buyers can take time to shop around and make a solid offer, rather than scrambling to find a home.

Getting a Mortgage

Most sellers won’t entertain offers unless the buyer has already been pre-approved for a mortgage. The bank or financial institution that issues your mortgage can be a great resource for helping you determine how much of a home you can afford. Since the application process may be lengthy, you should consider applying for a mortgage early in your home buying process to avoid surprises when you are ready to make an offer.


 


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