Overview:Buying a Home
By Helen Voight
Buying a home is always an exciting experience. As a homebuyer, you have control over the type of home you purchase, location, and payment. Enlisting the help of an experienced real estate agent will help you find the home you want, at the price you deserve.
The first step is to decide what house is right for you. Do you plan on living in the area for a significant amount of time? Will you be raising a family in the near future? Is a large garage important to you? Asking these questions will help narrow the focus of what you really want in a home. For some, an excellent school district takes the top priority. For others, it may be the view or size of the lot. No two homebuyers are the same, so it is important to communicate these needs to your real estate agent. |
When you find the right home, it is time to develop a purchasing plan. Discuss the selling price, homeowner fees (if applicable), etc. with your real estate agent. Try to get a clear, comprehensive picture of what the home will cost now and in the future. For example, ask if any structural or cosmetic issues need to be resolved with the home. If so, who is financially responsible for having them fixed? Ask the real estate agent for a comparative market analysis of the area to support the selling price. Look for trends in the area that may show the home will increase (or decrease) in value over time.
After finding the right home, investigating the neighborhood, and getting a comprehensive overview of the cost, you will want to focus on financing. An important decision to make is the type of financing for your new home. You will have the option of:
Fixed mortgages, which have a fixed interest rate throughout the loan period.
Adjustable rate mortgages (ARM's), which have a fluctuating interest rate based upon the market.
Interest-only loans, which allow for a lower monthly payment than fixed mortgages or ARM's.
Buying a home is a long-term decision, and approaching it with a long-term perspective will help alleviate some of the stress. Keep in mind that a home is also a financial investment. And as such, will require careful planning and strategy during its acquisition. |
