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Initially, go to a public library
or bookstore and research this subject. Usually the librarian can be very helpful in
your research. The Internet is also a good source if you
have access to it. The information you gather will assist
you in asking the right questions and help you make more
informed decisions about buying a home.
To get a head start in the process
of buying a home, check
your credit report and review the information. The first
important step is finding a mortgage lender and working with
them to determine how much of a mortgage you can afford and
get your loan approved before looking for a home.
Most Real Estate agents will require
that a buyer talk to a lender before beginning to look
for their new home. A pre-qualification
occurs when a lender asks the potential buyer questions regarding
income, assets, debts, credit history, and job history. Based
on the answers from the buyer and on their credit report,
the lender can recommend that the buyer is “pre-qualified.”
It is very important to have a
loan pre-approval in place because you become a cash buyer. This enables you to negotiate
from a position of strength. The pre-approval process is
easy, straightforward and lets you know how much of a mortgage
you can afford. In addition, this speeds up the buying process,
and establishes your credibility and seriousness with the
seller.
Once a buyer is “pre-qualified,” they should
immediately come into the Lender’s office and get a
Pre-Approval Certificate. There is no binding commitment
on the buyer’s part to follow through with the loan.
The next step is to find a Real
Estate agent who represents
you, the buyer, and not the seller. It is important that
your agent is familiar with the make-up of the neighborhood
where yare are considering buying. The agent should know
the market value of the homes in the area, the schools, shopping
and other important area economic facts, including resale
values. Are they trending up or down?
Ask your agent for a copy of the
documents you will be asked to sign if you decide to buy the property. Review them ahead
of time, so you will understand the questions that you will
be asked, the things you will need to know and the decisions
you will need to make.
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