When Buying a HomeYour first step in the process of buying a home is to determine how much you can afford to borrow. A basic rule of thumb is that a lender will want your monthly mortgage payment to be no more than 29% of your monthly gross income.
Mortgages and Home Buying ProgramsThere are many different kinds of mortgage programs available. It is best to do some research about the pros and cons of each program. A real estate broker can help you understand the steps you will need to take, and can refer you to a reputable mortgage broker or service. There are also special home buying programs available from various organizations and many local governments that offer special home buying programs to help first-time home buyers and those in a lower income bracket. Get informed - you may be surprised to discover what you are eligible for!
Determine Your Search CriteriaBegin your home search by focusing on the location where you want to buy, and the amenities you want in a home. Determine how much square footage you want, how many bedrooms and baths you need, etc. Knowing what you're looking for will not only help you focus your search but will also help your real estate broker understand your needs so that he/she can best assist you in the process of buying a home.
Shopping for a HomeThere are several avenues to take once you begin your home search. Your real estate broker can supply you with listings, based on your search criteria. You may also look for property on the Internet, and then ask your broker to set up an appointment to show you the house. Reading the real estate section of your local newspaper, or driving around neighborhoods that interest you is also a viable strategy. It is important to see as many open houses as possible, so that you can develop an understanding of the market, and get a solid idea of what is available in your price range when buying a home.
The Home Inspection
Once you have made an offer on a home, you will need to schedule a home inspection, conducted by an independent authorized inspector. It is extremely import to hire a reputable inspector so that you know exactly what you are buying. Do not hesitate to ask friends, family, and co-workers for advice. If you are satisfied with the results of the inspection, then you can proceed to the Purchase and Sales agreement. If the inspector finds problems with the property, you may want to negotiate with the seller to lower the price, or to pay for certain repairs.
Appraisal Your lender will require you to get an appraisal of the house you want to buy, to make sure it is worth the money that you are borrowing. You may select your own appraiser, or you may ask your real estate broker to help you with this task.
Homeowner's Insurance Lenders require that you have homeowners insurance, to protect both your interests and theirs. Like everything else, be sure to shop around for insurance that fits your needs.
Settlement or Closing Finally, you are ready for the closing. Be sure to read everything before you sign! You should have both your real estate broker and an attorney present at the closing when buying a home to ensure that all is in order.
Make sure that there is something that says Free Buyer Consultation.
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Connecticut's Premier REALTORS©
At Anne Miller Real Estate, we specialize in homes, condos, and apartments in the Hartford and Tolland counties, which includes but is not limited to: Glastonbury, Manchester, Vernon, South Windsor and East Hartford.
Our real estate agents are working hard to ensure that you get the home of your dreams. Anne's agents will help you make your purchase or sale in an efficient and professional manner.
So sit down, relax, and enjoy the exciting world of real estate at Anne Miller Real Estate, where the client is always number one!
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Mortgage InformationThe decision to buy a home can be one of the most valuable and important investments one can make. Therefore it is important that you are familiar with the mortgage process so that you can wisely finance your home. Essentially, a mortgage is just a loan that is used to finance the purchase of property. The property itself is used as security to ensure repayment until you have repaid the entire amount plus interest.
There are many types of mortgages on the market and finding the right one can be an overwhelming project. The best approach is to divide the process into manageable tasks. Sit down with a mortgage professional and examine the advantages and disadvantages of all available options to determine which product is best suited to your current situation and future plans.
How to Find the Right Mortgage
- Estimate how long you expect to live in the home. If the answer is less than three to five years, consider an Adjustable Rate Mortgage (ARM), which typically starts out with a lower rate. If you plan to live in your new home longer than five years, a fixed-rate mortgage offers protection against rising interest rates.
- Shop around for mortgage rates. Banks, credit unions, and mortgage companies all offer mortgages. Compare at least six lenders in your area.
- Add up all the costs for each lender. Include fees, points, closing costs, etc., to arrive at the total mortgage cost for each lender.
Mortgage Terms
- Amortization Period
The period of time after which, if all monthly payments are made on time and in full, the loan will be paid out.
- Down Payment
The amount of money provided by you, the purchaser toward the price of the property (not including legal fees or other acquisition costs).
- Interest Rate
The actual cost of borrowing money, charged as a percentage of the outstanding amount owed. Usually compounded on a monthly basis.
- Mortgage Amount
The total amount of money to be borrowed by you, the purchaser, and applied toward the price of the home.
- Prepayment Privileges
The right of the borrower to pay out all or part of the outstanding principal towards your home before it comes due.
- Term of the Mortgage
The period of time during which the loan contract is active. During this period, you the Borrower makes periodic payments (usually monthly) to the lender and at the end of the term the balance of the loan becomes due and payable.
Anne Miller is proud to recommend the following mortgage brokers:
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