Quilting and Real Estate in MD

Buying a House

It still amazes me that many people don't know how serious this business of buying a house is. I firmly believe that everyone deserves the opportunity to own their own home regardless of how much you can afford to spend. If $50,000 is all you can afford, your home is no less important than if $1m is what you can afford to spend.
So, I thought I would just jot a few notes here for those people who are considering buying a house for the first time.

1. I think probably the most important thing to do is find out how much you can afford to spend. How much is your monthly mortgage payment going to be? To do this see a reputable lender. That is to say, don't go on the internet and google finance companies. Call your local bank or better still sign on with a buyer's agent and ask them to put you in touch with a lender that they recommend. Don't even consider getting in the car with a realtor until you have spoken to a loan officer and he has looked at your credit and your earnings and you are prequalified for a mortgage. There is no point in getting your hopes up over a house you can't afford. Be up front with your realtor and loan officer before you start looking. If you need closing cost assistance because you don't have quite enough saved tell the realtor up front so that the realtor and loan officer can be creative in ways to structure your contract so the seller can help contribute funds towards your closing costs.
2. If you are buying your first house you may have to change some aspects of your lifestyle in order to be able to afford your house and to keep on enjoying it for many years after you have moved in.
3. Start your search early. Don't wait until the week before your lease expires and expect to move into your new house next week. From the time you make your application for financing, write your contract and have the title work complete it could take 30 to 45 days before you will be enjoying your new home. I would not recommend a pre-settlement occupancy they are very tricky and often do not work out the way you would like them to.
4. Do your homework. When your realtor starts showing you homes check out the local neighborhood and schools on your own. Your realtor can not comment on the community or the schools. After you have looked at the house check out the neighborhood at different times of the day and night. Communities often change their personalities at different times of the day so it's important to check them out if you are really interested in a home there.
5. After you have written your contract and applied for your financing don't start spending money or running up your credit cards and definitely pay your bills on time. Overspending could spell disaster for final approval on your loan.
6. Be sure to have a home inspection, even if it is only for information purposes. Your home inspection is 75% education and your home inspector will show you where all the shut off valves are and how to maintain your home for years to come.
7. Ask your realtor what to expect for closing. Every state is different in how closings are done. In Maryland you have the right to choose your closing agent. Ask your realtor for a list of reputable Title Companies. Their fees are mandated by the state so you will find that the fees are pretty similar. Your realtor will schedule your closing for you, be sure to tell them what a good day and time is.
8. The day before closing you should do your final walk through. Don't wait until the day of closing unless nothing came up on your home inspection. If you were expecting repairs to be done after the home inspection it's better to do your final walk through the day before that way if there are any problems you won't be holding up or delaying settlement.
9. Remember your realtor has bought and sold homes for many people and they love referrals.

Good luck and enjoy your new home!!

posted by bmorerealtor @ 8/13/2006 11:39:00 PM