Thursday, February 5, 2009

Steps to buying a House

Written by: Liwin Troy Lee

1. The first step you should take before buying a house is finding how much the bank (lender) is willing to lend you monthly and decide whether you are comfortable with paying that amount back.
2. Find a good lawyer. You can do this by asking your friends and family or calling them up. Find how much they charge (the fee should be fixed). Decide if you like the lawyer. A good one takes their time to explain things.
3. Find the houses that are selling in the area and find out how much they are selling it for.
4. Come up with a down payment. This is usually 15 to 20 percent of the selling price.
5. Find a real estate agent you can trust.
6. When you find a new house, do not fall in love with it because you might not get it. Find comparable houses in the area and how much they were sold for. Offer a reasonable bid.
7. Wait for a reply. Expect rounds of counter offers.
8. Once your offer is accepted. Put down a binder (1%) until the contract is signed.
9. Call your lawyer and ask him to explain the details of the contract to you.
10. If all goes well, sign the contract. Then pay a 10 percent down payment.
11. Submit mortgage application with application fee. Ask the lender to lock the rate until closing date. Some application fee cost include attorney fee, title insurance, appraisal fee, home inspection and property tax.
12. Show up at the closing and sign the paper. Also, bring lots of checks to pay the various fees.

What are the Steps involved in Buying a House?
The Seven Steps to Buying a House
Home Buyer's Basics

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