Home Buying for Dummies
Home buying for dummies will help you figure out what you need to know before you buy and where you can find help selecting your home and mortgages.
Before You Buy:
The U.S. government suggests you know your rights as a buyer before stepping into any financial obligation. It’s important you take advantage of the resources available for homebuyers before someone else takes advantage of you. You should know, first of all, about the Fair Housing regulations in the United States, about your more general rights as a buyer and seller, and about the responsibilities of your mortgage provider.
The U.S. Department of Housing and Urban Development, or HUD, has full-length documents available free of charge, which will assist you in your quest for more education about the buying process. Check out www.hud.gov for more information.
Help From Real Estate Agents:
Real estate agents can be an enormous help when you are looking to buy a home. They have strong knowledge of the area to which you are moving, and they have access to more home listings in the area than you will be able to find on your own. Do your research before making a decision, though. Shop around to find the right agent for you. Check out the different real estate agencies and the services they offer.
You also need to understand a bit about mortgages before asking a real estate agent for help. Choosing a mortgage is something you should do independent of an agent because the mortgage you can afford is reliant on your personal finances. Most lenders suggest your monthly mortgage payment be no more than 29 percent of your monthly income.
With rising home prices, it’s easy to be tempted to pay more than a third of your monthly salary, but it’s not a good idea. It’s better to choose a lower cost mortgage or less expensive home now than to be faced with the repercussions of paying more than you can afford. Discuss your options with a mortgage company and figure out how much you are willing and able to pay before suggesting home prices to a real estate agent.
With this information behind you, you can begin figuring out what you really want in a home. Price isn’t everything in a home and shouldn’t be the sole deciding factor. Tell your real estate agent what you are looking for – how many bedrooms, how many acres, what neighborhoods, what school districts, etc. You need to have a very detailed idea of what you want. It will make your eventual decision-making process easier and will help your agent select the best homes to view. You won’t seem like dummies buying a home if you come prepared with your list and knowledge of mortgage options.