Buying a home - One of Life’s big decisions
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A SIX step Process to buying your home
- Learn the local housing market: What is available, What are the prices, What is the future development of the area, Traffic flow to and from work, Environmental concerns including sound and noxious odor. Always remember the saying “The Three most important concerns in buying a house are location, location, location.”
- Learn the process: Offer Acceptance Contract and Negotiations, Binder money, Closing terms and costs, and Good Title (title insurance).
- Obtain Financing. Learn your credit score. Your payment will be determined by two factors the price you pay and the financing that provides the money. Discover the many loan products and check for Government programs and community bond programs to include down payment assistance etc. Having financing in place before making your offer, strengthens your offer.
- Require in all cases a Seller’s Disclosure (signed by the owner) to help make the playing field level. This brings honesty to the process or helps to determine if the actions of the seller may have been fraudulent.
- Always have the home professionally inspected. Know the inspector and know their credentials. I do not recommend a home inspector who does not have the infrared viewing device to “see” inside the walls and determine problems not visible to the “naked” eye.
- Taxes and Insurance: What are the local property taxes and are there any programs designed to help me (age, handicap etc.) What are the taxes on the sale and or profits when I sell. Learn the differences and requirements to home owners insurance, liability insurance, wind insurance (separate in some states), What does the policy insure with regards to my personal property and the limits i.e. $4,000 for firearms would not protect the avid collector, jewelry etc.. FLOOD Insurance is NEVER a part of the home owners policy may be required or is it recommended for the house you are buying. Title insurance for the mortgage company and for the owner - separate policies.
