What're Step By Step Instructions On How To Buy A Home?

Dear wealthy one,you have to be very practical and pragmatic in the purchase of the house.You just do not see the house like it and purchase.There are a few things or steps you have to take.The first and the foremost is what is your need.Take your future plans also into consideration. How much do you have for down payment.

The most important question how much loan or mortgage can you raise.This will depend upon your age, your credit rating and your income,meaning do you qualify for the loan.You can get a loan which will be payable in 20 to 30 years.I feel here I must say instead of paying rent every month you pay off your mortgage and in the end you own the property.But remember you have to pay taxes insurance and most of all maintenance. some pay higher down payment and than they have to pay easy installments on their loan. You could being the first time home buyer be a zero down payment buyer.Banks allow that also.But than that means your monthly payments will be a little higher. You say you are the wealthy one so may be you can pay the whole price upfront.Before doing that you may like to check if you invest the same amount and earn more.

As I earlier said first of all ascertain your need.How big a house do you need taking in consideration your future family plans.Generally people see what is their yearly income and buy a house worth three times their annual income.A bigger house means you can rent parts of it and pay part of your monthly installments  of the mortgage.

Their is some thing as a closing cost. before making a final decision take that into consideration.It may be from 1 to 8% and some banks also give it as a part of your mortgage.Some miscellaneous costs like the application fee for the loan,the bank fee to prepare your credit report,inspection of the house(a very important step).
What will be seen before the bank allows you a mortgage.Your income should be  3 times  higher than the monthly payment set by the bank to pay off the loan,your previous employment history and how well have you been paying your bills ,your credit report.
Than you go to a Realtor Generally recommended by friends.

Remember the buyer does not pay to the Realtor but the seller of the property does.Tell him your requirements tell him how much the bank is ready to give you. He will show you different houses and than you choose.You do not give the exact money to the seller that he asks.You start by offering less and that after some talking you both the seller and you agree on a price.Remember before making any offers you are supposed to get a list called disclosure by law.If you agree than you talk moneyHave I made things hard to understand.

And, so I will say this... the mortgage is NEVER dependent on your age, unless you are underaged - a minor - ineligible to sign a contract. If you are 80 years old, and applying for a 30 year mortgage, providing you have the required income and credit, a lending institution may NOT refuse you a loan or change your fees from a borrower, say, aged 30, with the same considerations.

There are many "home buying for dummies" type books available.  Your local library probably has a selection.  The "how-to" can be intimidating, but you will probably work with a real estate agent to find your home, and this person can answer the basic factual questions about the process.   Getting a good mortgage is your job, though.  Compare banks, rates, and terms.  Being an educated financial consumer will help you buy a home and a mortgage that you can afford.  You will feel more in control of details if you keep a notebook with sections for comments about homes you look at, a checklist of what to bring to the closing, etc.  I'll add some advice here:  Use online or book guides to determine the level of debt plus home spending that you feel comfortable with; don't rely on your loan officer to tell you what you can afford.  In other words, don't buy a home that costs what your bank will lend you--look for a home that costs less than the debt available to you.  Banks are often willing to lend people more debt than they can afford.  Remember than in addition to the mortgage, you will need to pay homeowner's insurance, taxes, and repair bills.

The previous advice is good and probably answers some of your questions.  I agree that it's important to remain as pragmatic as possible; don't "fall in love" with a house until after you have bought it for a fair price with an affordable mortgage that you understand.

There are many "home buying for dummies" type books available.  Your local library probably has a selection.  There are also several online programs that help you calculate whether you are better off renting or owning.  Renting is a smarter financial option for many people, so you might want to think about what goals you are hoping to achieve with your choice (emotional or financial, etc.).

The "how-to" of home buying can be intimidating, but you will probably work with a real estate agent to find your home, and this person can answer the basic factual questions about the process.   Getting a good mortgage is your job, though.  Compare banks, rates, and terms.  Being an educated financial consumer will help you buy a home and a mortgage that you can afford.  You will feel more in control of details if you keep a notebook with sections for comments about homes you look at, a check-list of what to bring to the closing, etc.  

I'll add some advice here:  Use online or book guides to determine the level of debt plus home spending that you feel comfortable with; don't rely on your loan officer to tell you what you can afford.  In other words, don't buy a home that costs what your bank will lend you--look for a home that costs less than the debt available to you.  Banks are often willing to lend people more debt than they can afford, and no- or low-money-down loans can be very expensive.  Remember that in addition to the mortgage, you will need to pay homeowner's insurance, taxes, and repair bills.  Good luck.