How to Buy a Home - After You Find a House

• Financing and Settlement
• Real Estate Settlement Procedures Act
• Financing and Closing
• Understand How to Get the Best Deal
• List Your Home for Rent or Sale FREE

Home Buying: Financing and settlement 

Learning how to buy a home involves more than just finding a property and an agent and signing a few forms. According to the U.S. Department of Housing and Urban Development, Office of Housing, Federal Housing Administration, taking the step to buy a home is a major financial decision that includes not just the house hunting process, it also includes the need to understand the basics of home financing and the settlement process.

Real Estate Settlement Procedures Act

To make the best decisions, this government agency states that both lenders and mortgage brokers are required by federal law, called the Real Estate Settlement Procedures Act ("RESPA"), to provide you with approved information that outlines in detail the financial side of the process when you need to know how to buy a home.

In fact, the data is put together in a little booklet titled, "Buying Your Home: Settlement Costs and Helpful Information ." Lenders are required to provide a copy free of charge, when you apply for a home loan or mortgage, or shortly thereafter. You may also receive a copy from your real estate agent. So, let's look at the money side of home buying.

Financing and closing

Either you first located a home you were interested in purchasing, or you got in touch with a bank or mortgage company to see what kind of house you could afford. Great. So now what?

Here are some basic steps:


• After making the final decision about the home you want to buy, you and the seller will need to actually sign a purchase agreement.
  Before actually signing this legal document, it is a very good idea to have it reviewed by a competent legal professional.
  
  This document will specify many important details, so it's vital you know what's included in the agreement.
  
  
• Then, you will also need to apply for a home loan or mortgage. There are many options available to home buyers who need financing, so shop around to find the best deals for which you qualify.
  
  
• Once you have secured your mortgage, you and the seller will have to come to the closing meeting to finalize the purchase.
  This is where the "settlement" occurs. At this time, you will be bringing an initial payment to the seller. There will also be lots of paperwork to sign.
  
  
  • At this point, you may feel that you've signed your life away, especially after signing the loan paperwork. However, if you've done your homework, this feeling should be replaced by the personal satisfaction of becoming a home owner. And the best is yet to come. After the former owner has packed up and moved out, you will now be ready to take possession of the house and begin to make it your new home.
    

understand how to get the best deal

Of course, before you actually take the plunge and sign agreements, it's a good idea to seek the advice and guidance of a real estate professional, because when you buy a home, you have the ability to do some serious negotiating and bargaining. You can, and should haggle over terms of the sale, and any additional conditions. You also want to be clear about the costs you are willing to pay, and those the seller will be obligated to pay. This is where a qualified real estate broker can really help.

So, get your hands on the "settlement costs" booklet as soon as possible. The booklet will help you with knowing how to shop carefully to get the best value for your money. While buying a home is exciting, the actual process varies depending on location, so make sure to do your homework and work with real estate and lending professionals you trust. The government booklet provides some general steps to help you through the process.

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