Process Essay - Buying a House

The specific way you progress through a home buying transaction varies depending on the real estate laws and customs where you live, but there are many home buying processes that are standard, even though they might not be accomplished in the same order in every location.

Decide to Buy:  The decision to purchase your first home is one of the biggest. After all, a home is the largest investment most people will ever make. You must know when the right time to buy is. There is never a wrong time to buy the right home. The key is finding a good buy and taking the time to carefully evaluate your finances.

Get your Finances in Order: Your credit reports are an ongoing look at how you manage your finances. You must know exactly what your credit reports say about your financial history before you apply for a mortgage, because the reports play an important role in the mortgage approval process and in determining the interest rate and other loan terms that a lender offers you.

Get a Realtor: Real estate agents represent buyers, sellers, or both. It's essential to understand agent duties and loyalties before you hire them. A real estate agent would educate you about the current conditions of the market, guide you to homes that fit your criteria, negotiate with the seller on your behalf, check and double-check paperwork and deadline, and solve any problems that may arise.

Secure Financing: Ultimately, your lender will per-approve you for a certain amount, but YOU will decide what you're comfortable paying every month. It's up to you to decide how much you're willing to stretch your budget in order to get into your dream home. For the same purpose you must choose a loan officer and make a loan application; get approved. Then, determine what you want to pay and select a loan option. Submit to the lender an accepted purchase offer contract.

Find a house of your choice: Now it’s time to find a house. There are a lot of homes out there and diving in without a guide can become overwhelming and confusing. A great agent will help you more accurately pinpoint homes that fit your criteria. The right home will meet all your important needs, and as many of your additional wants as possible. Now, while selecting the right home you may want to consider the location, size, neighborhood and last but not the least distance to the commercial area. Your priorities will probably adjust along the way.

Make an offer: The three basic components of your purchase offer are price, terms and contingencies. Price is the dollar amount you are approved for, willing and able to pay. Terms cover the other financial and timing factors that will be included in the offer. Contingencies are clauses that let you out of the deal if the house has a problem that didn't exist or which you weren't aware of when you went under contract. Wait for a reply; if you have bid lower than the asking price, expect a counter offer higher than your bid. This can go a few rounds until you settle on a price.

Get a home Inspection: Once, your offer is accepted you need to do the inspection of the property. This can be done by hiring home inspectors. With the help of inspection you'll know what you are getting into before you sign closing papers. Your main concern is the possibility of structural damage like water damage, shifting ground etc. If a big problem shows up in your inspection report, bring in a specialist. Even if your home passes inspection, you still need to buy a home owner's insurance policy that protects you against loss or damage to the property.

Closing: Once you have completed the inspection process, it’s time for closing! Closing includes: keeping in touch with your agent and lender, returning all phone calls and completing paperwork promptly, communicating with your agent at least once or twice a week, and verifying with your lender that all mortgage funding steps are completed, conducting a final walk-through of the home with your agent, confirming with your agent and lender that you have the settlement statement, certified funds, and evidence of insurance lined up prior to closing. Transactions generally close within 30 to 60 days after your offer has been accepted.

Protect your Investment: You've done it. You've looked at properties, made an offer, obtained financing and gone to closing. The home is yours. Those papers you received at settlement are extremely valuable, so hold on to them! In the short-term they can help establish tax deductions for the year in which the property was purchased.

Moving- In: You are all set to move in now. It is generally understood that sellers will leave homes broom clean when moving out. This expression does not mean vacuumed or spotless. Hire the cleaners to do a detailed cleaning once again before you move in. You can do the same yourself too. Once the house is neat and clean, hire the movers or rent a U-Haul to move your stuff in.  Lastly, enjoy your home. Owning real estate involves contracts, loans, and taxes, but ultimately what's most important is that home ownership should be a wonderful experience. Enjoy!