Paperwork forms the most critical steps of closing a property deal. Despite there being a heap of papers filled with complex legal terms and jargon, it is highly recommended to read it yourself. In case you don’t understand certain terms or portions, one can look up for explanation on the Internet or consult a real estate attorney. Although you may feel pressured by the people who are waiting for you to sign your papers - like the notary or the mortgage lender - read each page carefully as the fine print will have a major impact on your finances and your life for years to come. In particular, make sure the interest rate is correct and all other agreed terms, like no prepayment penalty, is clearly mentioned. More generally, compare your closing costs to the good faith estimate you were given at the beginning of the process and throw a fit about any fees that may appear off.
Buying a house across the street from a high school didn’t seem like such a bad idea when you saw how nicely renovated it was. But when you don’t have kids and Friday night football games are keeping you up later than you would like, you realize you should have made a pros-and-cons list regarding the location. Don’t let a charming interior override a location you dislike or a lot that will give you flooding problems. “If you don’t like your lot, don’t buy the house, because you cannot change that,” says Kim Wirtz, a Realtor for Century 21 Affiliated in Lockport, Illinois.
Next, consider how long the home has been on the market, and how incentivized the homeowner is to sell. For example, if the seller is living in a transition home while waiting to sell, you may have a better chance of getting the seller to accept a discounted offer. But if he's casually putting the home on the market to see how much he can net, the seller may be more apt to wait for the perfect price.
The fastest-growing metro area in Arkansas takes the No. 5 spot. Residents spend 25.47 percent of the blended annual household income on a mortgage or rent and utilities. Also coming in the overall Best Places to Live list at No. 5, Fayetteville is seeing significant population growth, plus a short commute time and low crime rate contribute to its appeal among the 100 largest metro areas in the U.S.
You can get pre-qualified for a mortgage, which simply gives you an estimate of how much a lender may be willing to lend based on your income and debts. But as you get closer to buying a home, it’s smart to get a preapproval, where the lender thoroughly examines your finances and confirms in writing how much it's willing to lend you, and under what terms. Having a preapproval letter in hand makes you look much more serious to a seller and can give you an upper hand over buyers who haven’t taken this step.
4) Choose the right loan term for your needs. A 30-year loan has lower monthly payments and can be advantageous if you'll make good use of the savings by investing them or paying down high interest debt. You can always make extra payments if you want to pay the loan off sooner. But if you're honestly more likely to splurge the money you save each month with a 30-year loan, the 15-year loan could be better since it will cost you less in interest and you'll pay it off sooner.
Many renters think they can’t afford to buy a house because they haven’t saved enough to pay a 20 percent down payment. But you might be surprised to see what kind of house you could potentially buy based on the amount you spend every month on rent. Try plugging some numbers into an affordability calculator to get a better sense of what you need — and how much you have. Or, you can talk to a lender and find out what you might qualify for.
Even for the millennial generation, which has been slower to become a major part of the homeowner pool than previous generations, buying a house remains a key goal in life. In a study released earlier this year on expectations for aging, skilled nursing and assisted living company Aperion Care surveyed 2,000 millennials, of which 85 percent say they expect to own a home in their lifetime.
Once the offer has been approved, the buyer will need to secure the mortgage. This is done by complete the mortgage application. If a person has not been pre-approved or pre-qualified, it will likely take longer to complete this process. Ideally, a buyer should "shop around" for the best rates and terms. Most buyers choose fixed rates rather than adjustable rates.
"Many first-time homebuyers will begin to look at properties prior to speaking with a lender, but this is a huge no-no," says Colin McDonald, a licensed real estate agent at Berkshire Hathaway HomeServices Blake, in Delmar, NY. "Most Realtors or sellers will not start to show houses to buyers until they've actually spoken with a lender and can provide a pre-qualification letter."
You will have to provide proof of employment and proof of income to qualify for your mortgage. This shows the lender that you are creditworthy. It’s usually not great to quit your job during the home-buying process for this reason. Some lenders may ask for employment verification later in the home-buying process, so your approval could actually change if you take a lesser paying job during the home-buying process.
Need help finding an expert you can trust with such an important purchase? Check out our Endorsed Local Provider (ELP) program. We only recommend real estate agents who close 35 home transactions per year or close more home transactions than 90% of the agents in their market (among other qualifications). Trust me, these pros are the best! Find an agent now!

Home inspectors aren’t able to see through walls, so the discovery of a pipe leak isn’t uncommon after you’ve moved into the home. But this is one repair you want to make as quickly as possible. “When there’s water that is not stopped, it can create mold – and mold remediation is extremely expensive and extremely difficult,” Hunter says. Mold growth in your home can cause serious health problems, so it’s imperative to address any moisture issues as quickly as possible to avoid it becoming any more dangerous, let alone more expensive.
Once you've got your savings growing, your down payment set, and you are pre-qualified and pre-approved, start the search for your home. Begin by using sites like Zillow.com or Realtor.com to zero in on the home you want and the community you want to live in. Factor in key lifestyle needs -- like good schools, decent commute to your job, manageable property taxes, and ultimately, a home that has a good chance of appreciating in value if you ever want to sell it.
Need help finding an expert you can trust with such an important purchase? Check out our Endorsed Local Provider (ELP) program. We only recommend real estate agents who close 35 home transactions per year or close more home transactions than 90% of the agents in their market (among other qualifications). Trust me, these pros are the best! Find an agent now!
Enlisting the help of a real estate agent can make your search much easier. According to the National Association of Realtors, 88 percent of all buyers in 2017 purchased their home through an agent. A good real estate agent will inform you on the home buying process and provide their expertise on local market trends. In addition, they will connect you with listings within your price range that best suit your needs, as well as help negotiate the purchase price.

The fact that the Raleigh and Durham metro area is relatively affordable – with residents spending just 25.85 percent of the blended annual household income on housing and utilities – contributes to the trend in businesses and residents flocking to this North Carolina hot spot. Raleigh and Durham grew by 6.42 percent between 2011 and 2015 due to net migration alone, according to the U.S. Census Bureau, making it the 10th fastest-growing metro area due to net migration out of the 100 largest in the U.S.
I was readying myself to start my move as I am aiming to work away from our home and getting a new home is something that’s on my list of priorities. Knowing that getting one’s financial ready first for us to learn whether if we have enough income to sustain ourselves once we move as you’ve mentioned is a very helpful tip. That is something I would surely keep in mind as it would ensure that I can keep on living alone and independently. Thanks for the helpful guide on how to purchase one’s first home!

Wirtz says one of the things in a home that seems to always break or have issues within the first year of its purchase is the air conditioner. But it’s not always because it breaks down – she says it simply might not be as effective as the new homeowner wants it to be. “It may not be cooling like they’re used to,” Wirtz says. You can either learn to deal with a little less cooling, bring in an HVAC pro to inspect and fix any problems or research any DIY fixes that might get it cooling better – like air conditioner cleaning spray.

Mortgage insurance: If you take out a conventional loan and put down less than 20%, it’s possible you’ll have to pay private mortgage insurance, which protects the lender financially. You can typically request for PMI to be canceled once you reach 20% equity in your home. If you take out an FHA loan, you have to pay mortgage insurance, though you may be able to cancel your insurance once you pay down enough of your loan.
Congratulations, you’ve made it! On closing day, your team (AKA you, your Realtor, lender, and attorney) will meet with the sellers and their attorney to make things official. Your lender or attorney will let you know in advance the total amount of money you’ll need to bring to the closing meeting for your down payment or any closing costs. Bring that amount in the form of a cashier’s check, then sit back and get ready to sign your name—over and over and over.

The type of home that a person prefers is another factor to take into consideration when determining where to live. Things to consider include buying a new home versus a resale home. Home types include single-family detached homes, semi-detached homes, duplex homes, town houses, or even condos. When determining what type of home is the best fit, a person should take into consideration the lifestyle that he or she lives, current needs - such as rooms - and future needs of the family if it should grow.
Once negotiations have finalized, the contract has been signed and you’ve provided a small amount of cash as a deposit or earnest money, you’ll have a few days to conduct your due diligence on the property. That includes the home inspection, which will tell you if there are any issues with the property that could affect the amount you’re willing to pay or if there’s anything that should be repaired before you move in.
You most likely deposited earnest money when you signed the purchase agreement, which is a deposit made to a seller indicating the buyer's good faith, seriousness and genuine interest in the property transaction. If the buyer backs out, the earnest money goes to the seller as compensation. If the seller backs out, the money is returned to the buyer.

You will have to provide proof of employment and proof of income to qualify for your mortgage. This shows the lender that you are creditworthy. It’s usually not great to quit your job during the home-buying process for this reason. Some lenders may ask for employment verification later in the home-buying process, so your approval could actually change if you take a lesser paying job during the home-buying process.


Most home sale contracts give the buyer about 10 days to complete a home inspection. If you’re getting a mortgage to buy the house, your lender will likely require you to use a certified home inspector. (Even if you’re not required to get a home inspection, it’s best to get one anyway to make sure you’re not buying a house full of expensive problems.)


If you're like most first-time home buyers, you've probably listened to friends', family's and coworkers' advice, many of whom are encouraging you to buy a home. However, you may still wonder if buying a home is the right thing to do. Relax. Having reservations is normal. The more you know about why you should buy a home, the less scary the entire process will appear to you. Here are eight good reasons why you should buy a home.


Although it may not always be feasible if you live in an expensive real estate market, try to keep your total housing payment under 30 percent of your gross monthly income. When you spend much more than that on your mortgage, you risk becoming “house poor” — you might live in a beautiful home but find it difficult to save or even cover other monthly expenses.
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