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  • Writer's pictureMatt Wright

A Brief Summary Of How To Buy A Home

Whether you are purchasing a condominium or a cooperative, seeking approval from your lender or the real estate attorney you hire, these factors play a major role in the time it takes to secure your home. There are many factors that determine what type of home you buy, but when you buy a home, commit to taking the leap from renting to paying off a mortgage. [Sources: 3, 5]

Some of the things you need to deal with to pay for the final stages of your purchase include assessing the home (mortgage companies are required to do so to protect their interests in the home), a title search to ensure that no one other than the seller is entitled to the home, taking out private mortgage insurance (if your down payment is less than 20%), and filling out mortgage paperwork. Unforeseen steps to be taken prior to completion include final approval of your loan, acceptance or negotiation of the results of a home inspection, and the ability to cancel ownership of the property once you have taken out title insurance. [Sources: 9, 13]

Once you and the seller reach an agreement on the price, the house goes into trust, which is the time it takes to complete the rest of the purchase process. When you buy a house, you need a down payment of at least 20% of your purchase price or a lower down payment to have enough cash for closing costs to be able to purchase the home. [Sources: 6, 12]

Buying a home involves looking for a property, securing financing, making an offer, viewing the property and completing the purchase. Building your own house is different from buying a house and requires more effort to complete the process. Before you begin looking for a home, you should discuss your financial situation with a lender and seek approval prior to a loan. Prospective buyers must start with lenders to see if they can afford it and where their hurdles lie. [Sources: 0, 1, 9]

If you are in the process of approving your credit and a mortgage to see how much you can afford a home it is a good rule of thumb to avoid applying for a new car loan or credit card. A better credit rating can improve your mortgage rates and affect the overall cost of buying your home. [Sources: 0, 12]

Your qualifications to purchase a HUD home depend on your creditworthiness, ability to get a mortgage and the size of your down payment. If you qualify for an FHA loan, the most common option for first-time home buyers, you can set aside up to 35% to buy your home. [Sources: 4, 12]

For first-time homebuyers, buyers have a variety of options to help them purchase a home, including FHA mortgages aimed at newcomers. New builds and condominiums provide financing of up to 90%, making home ownership more attractive to first-time buyers. [Sources: 9, 11]

This unique home-purchase program offers huge savings for nurses, first responders, teachers and other public officials on HFA home loans : Not to be confused with the Good Neighbor program, HFA loans offer partnerships with local and state housing agencies for down payments and local grants to help homebuyers in low-income and underserved areas. USDA home loans were created to help low- and middle-income borrowers buy houses in rural areas. These loans offer lower payment requirements for low-income buyers (up to 3% of the purchase price), allow you to purchase a home with up to 100% financing; VA home loans for military home buyers (no minimum loan amount or down payment required); and FHA home loans are ideal for buyers with low credit ratings and high debt. [Sources: 8]

You can find out about other first-time buyers who benefit from grants that you can apply for by talking with your real estate agent or broker. Many of these programs are state specific and are income specific. In addition to these programs, HUD-funded and accredited housing counselors across the country provide advice on many housing policy issues, including buying a home. Once you have decided to buy a home, a specialist can help you negotiate the entire buying process, including making an offer, taking out a loan and completing the paperwork. [Sources: 4, 9, 12]

Your real estate attorney can help you guide you through the process of buying a home and prevent you from doing business or making decisions that could be detrimental to you. [Sources: 0]

A pre-approval letter shows the seller's estate agent that you are a serious buyer and gives you a crucial advantage over competing home buyers. This article will help you prepare for buying a house and to make sure you know what to expect on the road. The first and most important step when buying a home is to carefully evaluate your finances before you buy a home. [Sources: 0, 2]

If you are interested in buying a home in Sussex County, Delaware and you need a buyer agent then consider hiring me. I will do everything in my power to make sure that they buying process is smooth and painless.

-Matt Wright

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