Buying A Home

The purchase of a home may be the biggest investment you ever make - one that First American wants to help you protect. Whether you're just starting to look at listings or you've already signed a purchase agreement for your dream home, we can help walk you through the home purchase process - and then help you keep your home protected.

Should I Buy?

Your specific reasons for buying a home will always be unique, but common factors to consider before deciding to purchase a home include:

• The current housing market
• Home prices
• Mortgage rates
• Residential inventory
• Value of long-term investment
• Benefits of renting vs. purchasing

How Do I Prepare?

When you do find your perfect home, you may need to act quickly. That's why it's a good idea to make sure you have all your financial arrangements in order beforehand.

Before you start shopping, it's a good idea to:

• Set a budget (a mortgage broker can help with this)
• Plan for a down payment (typically between 10 and 20 percent of the asking price)
• Get copies of your current credit report
• Become an optimal credit candidate
• Get preapproved for a mortgage

Who Can Help Me?

Purchasing a home may be the largest financial expenditure you make in your lifetime. For this reason, you may want assistance in navigating the real estate market and home-buying process. Hiring a real estate agent or broker can be a big help. A real estate agent can help you by:

• Finding budget- and location-appropriate listings
• Arranging viewings
• Communicating and negotiating with sellers
• Locating off-market listings
• Keeping the transaction moving
• Offering advice

How Do I Make An Offer?

When you are ready to make an offer, you and your real estate agent will need to draw up a contract with the applicable information. Your real estate agent will then present this offer to the sellers (or sellers' real estate agent). The sellers may accept, decline or counter the offer.

Your offer might include:

• Sale price/offered price
• Street address and a description of the surrounding land
• Sale terms (cash purchase, mortgage financing, etc.)
• Seller's written intent to transfer title (ownership)
• The date the property will change hands
• Any agreements on the prorating of utility bills
• Payment of title insurance and home inspections
• Deed details
• State-specific required clauses (consult your real estate agent or broker for these)
• Offer timetable and expiration date
• Contingency plans that will come into effect as the result of a canceled/defaulted sale

What Are My Next Steps?

After a deal is accepted, everything that has been contractually agreed upon gets set in motion. The time between the offer acceptance and the closing of the transaction is known as "escrow." Depending on your geographic area, this process may differ, but will likely include third-party handling of transaction documents and funds.

Depending on negotiations, you might have to deposit money into an escrow account. The homeowner may then begin construction on any improvements/renovations required by inspections or the purchase contract, and you'll need to get your financial paperwork in order (including preapprovals, letters of intent and offer contract). All parties involved in the transaction will determine a tentative closing date, when the transaction should be finalized and you are scheduled to receive the keys to your new home.

After all the paperwork is signed, it's almost time to move in. If you think that a final inspection is necessary, be sure to include this in the language of the final contract; technically, you are entitled to as many walkthroughs as you want to determine if the sellers completed all agreed-upon repairs

To get more information about the First American Title can help go to there website at Firstam.com

All information has been provided by First American Title.... read the full article here