Before you start, there are many laws that protect you
from scams, unnecessary expenses, and discrimination
in the process of homebuying. The Pennsylvania Consumer
Notice is one such law. Know your rights!
2. Create Your "Wishlist"
Make your wish list. Focus on the features you want in
a home: 3 bedrooms or 4? 1 bath or 2? Garage or no
garage? Knowing what you're looking for will help you
focus your search. And it will help your real estate
broker, too.
3. Now it's time to contact Andrea
for help with finding your dream home!
4. Mortgage Pre-approval
Knowing how much mortgage you can afford is the first step. Andrea can help you
get the process started by getting you pre-qualified
for a mortgage. This will help us
get a pretty good idea of what you can borrow. However, if you
get pre-approved for a mortgage, you will remove any uncertainty.
A pre-approval is also important as you negotiate the purchase of your property.
You can save yourself a lot of wheel-spinning if we take
the time to figure out how much mortgage you can
afford. Generally, a lender will want your monthly
mortgage payment to total no more than 29% of your
monthly gross income (that's your monthly income
before taxes and other paycheck deductions are taken
out.) You also need to consider current loan interest
rates. The lower the interest rate, the more expensive
the home you'll be able to afford.
5. Mortgages and Homebuying Programs
Many different kinds of mortgages are available to you. Read about them, and
make sure you understand the pros and cons of each. Andrea's extensive knowledge in
mortgage financing will assure that you find the right mortgage for the property
that you want to buy! She can answer your questions and help you get started.
6. Shopping for a Home
Now you really begin house-hunting. Andrea will be able to find
listings for you, based on your wishlist. But don't stop there! You can do your
own looking, and then ask Andrea to show you the house. Start with the Internet.
Pick up real estate flyers at local grocery stores and convenience stores. Read the
real estate sections of your local newspaper. Drive around neighborhoods that
interest you and write down addresses where there are "for sale"
signs. Go to open houses. Try everything!
7. Home Inspections
When you make an offer on a home, it's a good idea to make your offer contingent on a
home inspection, conducted by an independent authorized inspector. You will have
to pay for this inspection yourself, but it could keep you from buying a house that
will cost you far more in repairs, down the road. If you are satisified with the
results of the inspection, then your offer can proceed. If you aren't, you may want
to negotiate, asking the seller to pay for certain repairs or asking for a lower price.
8. Homeowner's Insurance
Lenders require that you have homeowners insurance, to protect both your interests
and theirs. Like everything else, be sure to shop around for insurance that fits
your needs.
9. Settlement or Closing
Finally, you've gone through the whole process, and you're ready to go to "settlement"
or "closing." We know you'll be excited, but be sure to read everything you sign! And
before you go, read this important information about your rights.
10. Moving
Looks like you're ready to move. There's a lot to consider as you plan your move.
The good news is that there's lots of help.
Building a Home
If you want to build a new home, there are other things you need to know before
you begin. Learn about construction standards and about buying land, so you know
your rights.
Much of this information is from HUD's, "Buying A Home."
