3. Look at Homes 4. Choose a Location 5. Choose a Home Design 6. Hire an Agent 7. Make an Offer 8. Put Money in Escrow 9. Negotiate with the Seller 10. Begin the Closing Process 11. Finish the Closing Process
Before you do anything else in the home-search and home- buying process, you need to find out if you can afford a home, and if you can’t, you’ll have to wait until you can. There’s no point in getting your hopes up, stumbling upon the house of your dreams and finding out you can’t afford it. You have to work within your price range, and not only use that as a general guide, but also as your starting point in going forward. We talked about this in earlier chapters, when we outlined some of the financial steps you need to take before starting the journey of purchasing a home. So, know your budget! Don’t just think about the overall home sale price; consider the down payment, the monthly mortgage payments, property taxes, homeowners’ association fees, maintenance, and closing costs. Too many buyers make the mistake of not factoring in and accounting for all associated expenses in buying a home. A home might seem affordable to you at first glance, but there are always “hidden” expenses involved, which, if you aren’t prepared for them, could lead you into financial problems. If you’re not sure where to start, try an online mortgage calculator, which will take various factors into consideration, including your monthly income. It also never hurts to pay a visit to your bank to see what will be affordable for you. One tip is to make a detailed examination of the housing market to figure out
186
Powered by FlippingBook