Tips on buying a house?

what information do I need to buy a house?

Step 1: Find out how much money a bank will loan you based on your financial condition; This is referred to as getting pre-qualified for a loan. Contact any Savings and Loan nearby.

Step 2: Find out where geographically you can afford to live. Chose the best region based on the safety of the area, its accessibility to shopping, post office, parks, etc.

Step 3: Visit at least 50 places for sale and get a feel for what you like in a house.

Step 4: Once you've found a house, contact a realtor. If you cannot make up your mind, have a realtor find a house based on the amount you can afford and what you need in a house.

Step 5: Once you have a house, be sure to inspect the house for damage, pests, etc. prior to signing loan documents. If there are other problems that were not disclosed, request that the seller take care of these problems or compensate you.

Step 6; Get the loan and move in.

Your question is a little broad so I hope I am answering it. I am a Realtor in Las Vegas and I will walk you through the steps I take my clients. The basics should be the same where you are but there will be some differences.

Start by determining what you can afford. Invariably, this will be less than a mortgage company will qualify you for. Home ownership should be a happy experience, not a financial nightmare. So, only buy what you can afford per month.

Next, talk to a loan person you trust and tell them how much you want to pay and they can calculate what you can afford based on the amount you are comfortable paying, the tax bracket you are in and your credit score. Also, they can tell you if you qualify for a 100% loan, etc. Now you will know what price of home to be considering.

Spend time on the internet (realtor.com, remax.com, etc.) and learn about homes that you can afford. I suspect soon you will have a pretty good idea where and what you want to buy. The next step is to find a good agent. A good agent is someone who will save you money, time and risk and is a pleasure to work with. Finding a good agent is just as hard as finding a good doctor, dentist or mechanic. I have a few questions to ask prospective agents. Also, ask for references and call them before you make a final decision.

Before I give you the questions, know that they are based on finding a home that matches your needs, is in your price range and is a good deal. While everyone has a slightly different definition of a god deal, I think most people would describe a good deal as buying a home that meets their goals at well below market value, with favorable terms and where their closing costs are paid by the seller. Not true for everyone, but a good starting point for most.

Ask prospective agents the following questions. If their answers are largely, â€œIâ€™ve been selling real estate for xxx years, next agent!

* â€œWhat do you consider good deals?â€ You have the general answer to this. If they donâ€™t ask you questions to get your definition of a good deal, next agent.

* â€œWhat process do you use to find these properties before I start looking at homes?â€ If they ramble on about the MLS and sending you tons of flyers, next agent. I spend hours doing research to find only a few good deals that meet my clients needs. For example, I have an out of town client arriving tomorrow. Based on his description, I found 156 homes on the MLS that met his requirements. After several hours of research I reduced the number to 18. It is the agentâ€™s job to find the good deals; their job is not to drive you from home to home to homeâ€¦ Remember, money, time and risk.

* â€œHow do you determine the recommended price I should offer on any given property?â€ Most will say something like â€œcompsâ€. Comps, what similar homes recently sold for, is a poor estimate in a market where prices are declining. The offer price should be based on the lower of: current for sales (adjusted for offer vs. actual sales price averages) and comps. These days, it is usually the for-sales that is the lower price and the one that I suggest my buyer go with.

* â€œHow will you submit my offer to the seller?â€ If the answer is fax, next agent. I personally deliver all offers (unless the seller is out-of-town seller or it is a foreclosure where it goes to the bank). I spend the time to create a 7 or 8 slide presentation where I walk the seller, and their agent, through the process I used to calculate the offer price. Every time, the seller and his agent have had to agree with the process; it is fact not opinion the way I do it. And, while not every offer is accepted, none of the owners got upset and rejected the offer outright thinking that it was just a crazy offer. Plus, it is critical that I sell my client. I tell them why my client is the one that they want to sell to. Sometimes, my offer has been lower than another offer they received but they chose with my client because they knew nothing about the other buyer. This personal presentation makes a huge difference in a market when you may be offering far less than the seller wanted.

Also, in almost all cases in the last year, I was able to get the seller to pay my clientâ€™s closing costs. In Las Vegas this is 2.5% to 3%. This is a big savings to my client.

Once last request. Be flexible in the homes you will accept. If you are willing to accept any of a small number of homes (2 to 3 is typical) then the agent can negotiate a better deal. If you have to have a single home, the agents ability to get a good deal may be limited.

Hope this helps!

Eric Fernwood
Eric@ISellLVHomes.com
http://www.iselllvhomes.com/

Find an honest, reliable lender first and get pre-approved. Ensure that you understand all of your options, payments and what price home that qualifies you for. Try not to be tempted into an interest only loan. You will get more house for your payment but it can bite you later if you aren't careful.

Then find an honest, reliable real estate agent. If you do not know someone then ask for referrals. Do not be afraid to interview a few agents to determine who you are most comfortable with. Do not buy a house from the listing agent. They are contractually obligated to get the best price for the seller. You need an agent who is working strictly for you.

Do not start looking until you know what price range/payment you want; too often you will fall in love with a home above what is comfortable and that can lead to trouble down the road.

If you would like further information, please feel free to contact me @yahoo.com. I am in the business as was my father before me. Congrats and best wishes!

i wouldn't buy a house right now
Market is going down, slowly.
Interest rates going up, slowly.
House prices have not corrected themselves in a LONG time, ten years now?
If you cannot put down more than 25 % now, I think it would be wiser to rent, and save $500-800 a month instead of committing to a mtg. This way... the equity that you think you are missing out on right now. You will be making up for it in savings. And when the mkt takes a correction, then you'll not only be able to buy the house you've always wanted, but you maybe able to buy TWO!
Rates are going up. So evaluate, what it would do to your monthly budget if rates went up two more percent in the next five years. Probably $100 per percentage point on every 100 thousand mtg. that's about 1200 dollars a year extra in interest per year per 100 000 borrowed.
What happens if rates go up five percent? and prices drop 20% next year? Would you be receiving a phone call from the bank? Would you still have equity in the house, such that bank would call you on your mtg?
well what ever you do.
Good luck
Hope for the best.
But be prepared for the worst

Call a Realtor. That is why they exist. It cost you nothing to ask questions. The only time it cost you anything is if you buy or sell a property. Not even to look.

Loan information. Closing cost info. Home inspection info. Etc.

How much you can pay each month.

Your credit score.

Where you are moving to.

What kind of home you want and can afford.

kimhoa.nguyen@coldwellbanker.com

if you can approve for a loan.

Talk to a bank to see how much you can afford, then find a good Realtor. They'll give you all the info you need.

Location, location, location.

Comparable prices of homes in the neighborhood.
School districts, shopping, restaurants.
Hazards, flood zones, earthquake faults.
Other things that may affect resell value.

Your finances - how you plan to pay for the house.
Cash, downpayment, mortgage.
Other costs - repairs, homeowners (if any), property taxes
Job situation, how long you plan to live there.

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