Steps to Become a Home Owner

A home is a shelter. It is where you live, love, relax, and entertain friends, raise families, and work. Most people dream of owning a home. Here are tips of how to make owning a home a reality.

There are two things you need to know:

You need to understand everything that is involved in the home buying process.

You need to know that you are the most important person in the entire process.

Get your financial in order. Know exactly how much mortgage payment you can afford and feel comfortable with. And shop for home accordingly. Have your pre-approval letter for a mortgage loan. Have a down payment (20% of purchase price), closing costs (plan to pay around 3% of your mortgage), and anticipate the new costs that will come with home ownership such as property taxes, home owner insurance, utility bills, community and home maintenance fees in order.

Partner with a real estate agent. The internet may give you endless amounts of information, but a good agent can line up properties to view, answer many of your questions and make connection for you in your new community and help with lining up a home inspection company to inspect the home you plan to buy and even help you find a mortgage company if you do not know of one.

Fine tune your "must haves". Prepare a checklist of what is important to you and look for it. Don't be guided by emotion. Take time to think, analyze, and review your checklist and notes and compare it against your needs, wants, and budget.

How is the condition of the property? It would be a good idea to have a professional property inspector check the home you are planning to purchase and inspect it completely for termite damage, electric and plumbing problems or structural defects. This is very important to find out before making a purchase and can save you thousands of dollars in later repair and renovation bills.

If your home has defects will you be able to meet the financial challenges and live with the mess and inconvenience while the home is being brought up to your expectation? It is best to inspect before purchase so you will not have unforeseen problems and expenses later.

Size and configuration: Does the home have enough bedrooms and bathrooms to be adequate for the number of people that will be living there? Is one bathroom adequate and if not, what are the real cost and troubles of adding a second one? Is the kitchen area large enough and equipped with good working appliances? Does the home have a carport or garage to park your vehicle safely?

Comfort: Does the house have central heating and air-condition system? Depending on the region of the world you are looking at, a home may need to have a heating and or air conditioning system to make it comfortable to live in. If the home is equipped with heat and air systems, it would be good to check the year of manufacture and brand of the equipment and check for proper functioning.

Resale potential: On average people move to a new home every seven years, how easy would it be to find a ready and able buyer for this house? Not only do you want to look at the home and land you are thinking or purchasing, you should look at the surrounding area such as the neighbors and their homes and the local community.

Make sure there are no noticeable problems with neighbors and their homes. Your new home may be beautiful and in perfect shape but if the neighbors have a rundown home or there is crime in the community then your resale value will fall dramatically. Check out the local community for conveniences such as how far is it to go to the grocery store and if you have children, where is the school located. These are just a few of the many things you should look at and consider before purchase of a new home.

Features: Do you really want a swimming pool? Swimming pools can add value and beauty to a home if properly designed and constructed but be prepared for the maintenance involved to keep the pool clean and then expense to keep it up and running such as acid and chlorine and your increased electric bill.

Once you make an offer to purchase your new home, make it contingent on the findings of a professional home inspection. If any major defects surface, you will want to have the leverage to renegotiate or back out of the deal completely.