When you start looking for your first home to buy, the process and new terminology can seem overwhelming. At the same time you are trying to decide on neighborhoods, home features, and real estate agents.
1. You – Decide how much to spend, type of home, location, and features. Most listings have a mortgage calculator so you can understand different payments. For help with narrowing down what you want in a home, download our free House Hunter’s Guide. Also make sure you become pre-approved through a bank or credit union. This signals that you are seriously shopping for a home and what price range.
1.You – Decide how much to spend, type of home, location, and features. Most listings have a mortgage calculator so you can understand different payments. For help with narrowing down what you want in a home, download our free House Hunter’s Guide. Also make sure you become pre-approved through a bank or credit union. This signals that you are seriously shopping for a home and what price range.
2. Real Estate Agent – An agent will guide you through the buying process. They can help you understand the financing, importance of home inspections, and keep the process moving. The agent will compare prices on houses in the area that are similar to advise you better. If necessary, they can help negotiate the price and help you prioritize so you can buy the home that is best for you.
3. Bank or mortgage broker – You can finance your dream home through a bank, credit union, or mortgage broker. Mortgage brokers price-shop for you. They are not tied to a particular bank or single product.
4. Real Estate Appraiser – An appraisal will be ordered by the mortgage company or bank to determine the market value of the home. This will happen after you have the home under contract.
5. Title Company – They search the historical records for sales, purchases, and liens on the property. Make sure you don’t skip paying for title insurance; it protects you from claims of ownership by other people.
6. Real Estate Attorney – Texas doesn’t require an attorney, but they review contracts and are helpful with more expensive properties or more complicated contracts.
7. Licensed Professional Home Inspector – Inspectors assess the home for visible problems with structure, mechanical, plumbing, and electrical safety and durability. Some repairs can cost thousands of dollars. Use an inspector. It can save you money and give you confidence and peace of mind.
8. Homeowner’s Insurance – Even if you pay cash for a home, buy the insurance. Things can go wrong even on brand new homes. Homeowner’s insurance protects your investment.