Buying A Home Essay

The real-estate is a huge market that has many options to offer the costumers who are looking for a place in which they can settle and start their own families. The diversity of choices has made finding a house to buy a very mind consuming, complicated process. This complexity has distracted some house-seekers and led them to buy houses that are not what they want. Buying a house could be a complicated process but you can change that by following some steps.

Most home buyers need to finance their purchase, especially first time buyers. So sit down and have a chat with a mortgage lender and find out exactly how much you can afford before you go house shopping.

In the new system, Fannie Mae has also allowed buyers to mortgage homes for 3 percent down, if the buyer has good credit and does not have enough money to close the deal.

Taking out a mortgage is a major decision. There should be a lot of thought and consideration into the type of mortgage that fits your budget and provides what you need. We are going to focus on four different mortgage types and provide information that gives you some facts to consider throughout your decision.

However, even though it is the role of the bank to sell homes and other foreclosed property, it is the homeowners’ responsibility to research the expenses of owning property. By reading Web sites, newspapers, and magazines that have real estate listings, a prospective homeowner should determine, based on their options, on how much of a house that they can afford (Discover). Lenders generally recommend that people look for homes that cost no more than three to five times their annual household income if homebuyers plan to make a 20% down payment and have a moderate amount of debt. Before considering a home to purchase, it is best to be prequalified and pre-approved for a mortgage; a lending institution will review the given information and estimate how much they can lend towards a foreclosed home, in which the prospective homeowner can estimate the price range of the homes that they may consider (Discover). One way to prevent foreclosure is by hiring a real estate agent.

Timeliness is vital for the person who wants a home mortgage loan. One late payment can leave a really bad impression on a person's financial history. Make it a point to pay bills in a timely fashion. Speak to a representative if you find yourself in financial trouble and payments need to be delayed. Be a good money manager. Stay on top of your budget and live beneath your means. When you have enough money set aside for emergencies, you're able to stay on top of your bills and pay them on

There is always the common question what does it take to get a first time home buyers loan? And the answer is there is so much that goes into the process of getting a home loan. You have to find out if there is a down payment and what percentage the seller wants for a down payment. Is the seller going to pay the closing costs or does that come out of your pocket? All these questions and more are what go into getting a home loan.

If you are a first time homebuyer and you have no idea if you are a good candidate for a mortgage, take the steps to get pre-qualified by a mortgage lender, and then get pre-approved. There is a difference between getting prequalified and pre-approved, and by getting pre-qualified you can determine if pursuing a mortgage will be worth your efforts. For the pre-qualification process, you will be asked a variety of questions about your income, debt, credit score and rating, and other information. This allows the mortgage lender to get enough information to decide if you could be a potential candidate, and what you could afford.

Whereas previous generations of home buyers were content to simply arrange the mortgage through their banks, today's buyers are different. With the Internet offering new ways for people to look for deals on everything from home insurance to car loans, mortgage lenders are no longer the ones in control. However, using a mortgage broker is still more advisable than looking for offers by yourself.

Lenders are not only responsible for helping a potential home buyer in the paperwork and completing all the requirements they need to realize the point of view that each person approaches them with. All homebuyers from all walks of life need aid in completing the process with not only a professional but a professional that cares. A professional with no morals and only interested in financial gain or making a sale is more likely to hurry through the process or cut corners. A professional with knowledge and no empathy for a potential client is only a clever devil.

Often, potential home buyers have what it takes to qualify for a mortgage but haven’t managed to save enough for a down payment or simply don’t want to spend all of their savings on a down payment. Meanwhile, money from the many types of down payment assistance programs, available through state and local housing agencies, goes unused because home buyers think they don’t qualify for help.

A down payment is the amount of money that you have to put down upfront if you want to purchase something like a house. Most people have to put down a down payment and get a mortgage loan to cover the entire price of their home. The amount of the down payment can depend on your credit score, income, your credit history and the loan that you qualify for. Find out the answer to, “How much should your down payment be to buy a house?”

Millions of Americans have purchased a home in their lifetime-- problem is that we do not purchase homes very frequently, and unless you are a real estate professional, you are never quite up to speed on all the latest laws, codes, and traditions. Having gone through this process myself, I have felt the frustrations of 'documenting ' your life to a mortgage professional, the sales pressure from your average realtor, and heard opinions from hundreds of different sources on 'this is what I would do if I were you..." Practically speaking, no one is "you" and you have to make the biggest financial decisions of your life in a moments notice. The key for me has been preparation, knowing your market, and understanding your budget. No realtor is 'really ' looking out for your best interests, no mortgage professional is really trying to find you the best loan--- I have been frustrated as the process of buying real estate means you are on your own... I don 't believe you can put your trust in someone 's hands -- what you can do is gain knowledge. 1. Preperation-- sit down with your family and determine your budget-- be conservative... It 's imperative to work backwards on your budget, the biggest expense will be a mortgage-- determine what ALL other bills will be except for mortgage. Calculate in your utilities, autos, food, gas, insurance, entertainment, and your savings. Make sure that you are not neglecting your savings when it comes to purchasing a home. I say be

Establish Credibility: According to US News, the great American dream of owning a home appears poised for a comeback. Real estate company Trulia reports that in many parts of the country, rents are rising while housing prices are falling, making buying a home more affordable. Trulia found that in 98 out of 100 major metropolitan areas, including Detroit, Atlanta, and Cleveland, buying has become more affordable than renting.” I think the mortgage catastrophe of 2001 left prospective home buyers afraid of buying a house without being extremely certain that is the right decision.

Owning a house has become more important than simply having a place to live, or making a sound real estate investment in our society. Buying a house has become an integral part of the American dream. No matter if you are male or female, young or old, rich or poor, what culture or country you are from, everyone has a dream about it; in other words, every one of us wants to own a place that we can live in and create memories in that will last a life time. For a first-time homebuyer, that dream can quickly turn into a nightmare. The whole home buying process can quickly overwhelm the average individual. You’re entering into what could be the biggest purchase of your life with no experience to fall back on. The good news is a little preparation can go a long way and help you approach this decision with confidence. Luckily for you, I have taken the liberty of putting together a guide for the first-time homebuyer. Throughout this guide I will take you step by step through the daunting process of buying a home.