It’s easy to dream about the ideal house, harder to describe that home to a realtor. But, you’ve got to know the details that make up your dream home if you expect to find that perfect place. Identifying the details of your dream home may take a bit of work, but you don’t have to do it alone. If you have a partner and children, definitely get their input. Work to ensure that everyone who’s going to live in the house gets amenities and style elements that they want. Also, factor in your favorite colors, textures and personal aspirations when thinking about your dream home, including where the house is located. If you love surfing, swimming and fishing, a country home near the beach might be the right choice. Ask yourself questions to find out what you really want Do you want to live in a small town, the type of place where traffic jams rarely, if ever, form? Is access to reliable public transportation important to you, especially if you prefer not to drive? Are older homes more to your liking than modern, contemporary houses? And what about arts and entertainment? How important is it for you to be near major sports and concert venues? You can gain clues about your dream home when you visit extended family and friends. You may love the open living room, dining room and kitchen concept at a friend’s single family home. The round, marble tub at your grandparents’ house might give you a warm feeling every time you soak in it. Don’t rule out how carefree, courageous and happy you felt as you ran across the back lawn at your aunt and uncle’s three story bungalow. After you narrow down the location, size and type of house that you want, start to create a wish list of amenities that you want your dream home to have. Sample items that you could add to your wish list include whether you want a front and back porch, small or large yards and whether you want a home office and, if so, how big do you want the home office to be. Other wish list items are window styles, how much street noise you’ll tolerate, numbers and sizes of bedrooms, whether you want a finished basement and how many cars you want to fit in the driveway and garage. You may also want a dream home that’s only a 10 minute drive to work. If you identify features that you want in your dream home before you consider how much you can afford to pay for a house, you might be surprised at your options. By focusing on features or amenities, you could also help your realtor to look for a house that fits your wish list instead of zoning in on a house based mainly on price. Stay open. Finding eight out of ten things that you want on your dream home list could prove to be very rewarding.]]>
10 Steps to Buying Your Dream Home
- Save your pennies.You’ll need to come up with cash for your down payment and closing costs. Lenders usually like to see a minimum 20% of the home’s price as a down payment. If you can put down more than that, the lender may be willing to approve a larger loan or provide you with a better interest rate. If you have less, there are various private and public agencies — including Fannie Mae, Freddie Mac, the Federal Housing Administration and the Department of Veterans Affairs that will provide low down payment mortgages through banks and mortgage companies. If you qualify, it’s possible to pay as little as 3% up front. Once you’ve considered the down payment, make sure you’ve got enough to cover fees and closing costs. These may include the appraisal fee, loan fees, attorney’s fees, inspection fees, and the cost of a title search. They can easily add up to $5,000 to $10,000 — and often run to 5% of the mortgage amount.
- Find an agent: Mostsellers will list their homes for sale through an agent. But be aware that those agents work for the seller, not you. You need a buyer’s agent. Get in touch with a Real Estate Agent that you are comfortable with and that can help you find the home that is best for your personal situation. A buyer’s agent has the same access to homes for sale that a seller’s agent does, but their loyalty lays with you not the seller. The agents at Foran Realty are always ready, willing and able to represent you as a buyer’s agent.
- Search for a home. Your first step here is to figure out what city or neighborhood you want to live in. Try also to get an idea about the real estate market in the area. For example, if homes are selling close to or even above the asking price, that indicates a desirable area. Consider house hunting in the off-season or during the colder months of the year. You’ll have less competition and sellers may be more willing to negotiate
- Make an offer. Once you find the house you want, it is time to make your bid. When working with a buyer’s broker, get advice from him or her on an initial offer. Try to line up comparable data on at least three houses that have sold recently in the area. If you really want the house, don’t lowball the offer. The seller may give up in disgust. Remember, that your leverage depends on the pace of the market. In a slow market, you’ve got muscle; in a hot market, you may have none at all. Once you reach an agreed upon price, the seller’s agent will draw up an offer to purchase that includes an estimated closing date (usually 45 to 60 days from acceptance of the offer).
- Enter contract. Have your buyer’s agent review this document to make sure the deal is contingent upon:
- Your obtaining a mortgage
- A home inspection that shows no significant defects
- A guarantee that you may conduct a walk-through inspection.
- Secure a loan.Now call your mortgage broker or lender and submit your formal mortgage application. Be sure to include the information from your preapproval as you want the process to be as streamlined as possible.
- Get an inspection: In addition to the appraisal that the mortgage lender will make of your home, you should hire your own home inspector. An inspection costs about $300, on average, and could cost up to $1,000. Be sure that you ask to be there during the inspection. This will allow you to learn a lot about your house. If the inspector turns up major problems, like a roof that needs to be replaced, then ask your buyer’s agent to discuss it with the seller. You will either want the seller to fix the problem before you move in, or deduct the cost of the repair from the final price. If the seller won’t agree to either remedy you may decide to walk away from the deal, which you can do without penalty as long as you have that contingency written into the contract.
- Close the deal. About a week before the actual closing, you will receive a Closing Statement from your lender that lists all the charges you can expect to pay at closing. Review it carefully as it will detail all of the closing costs you will be required to pay at the closing. It should also detail all expenses that you have already paid including inspections, application fees etc. The actual closing is somewhat anticlimactic, but your buyer’s agent can brief you on the particulars.