How to Buy Your Home

• Write down your family’s financial goals (short term and long term). For example: Buy a house within one year; Be debt-free within 10 years.
• Prepare a monthly family budget. Your monthly debts (including car payments, child support, and credit card payments) should be 10 - 15% of your gross monthly income.
• Upgrade your credit report. Make all credit payments on time for at least 6 months. Make arrangements to clear up any unresolved items such as charge-offs or defaulted student loans.
• Eliminate consumer debt. Don’t purchase an automobile or any other major purchase on credit. Contact Consumer Credit Counseling if you need help cutting debts.

• Complete loan application form and turn it in to your loan agent, with the credit check fee (usually about $25 per person).
• Follow through with loan agent to receive a letter of pre-qualification from your loan agent.
• Contact Regina Brown, Realtor, to search for homes in your pre-qualified price range.
• View homes with Regina Brown, Realtor, and find the best homes for your family.
• Your Realtor, Regina Brown, will make an offer to purchase a home. Your offer will be accompanied by your earnest money deposit (usually $1,000).

Purchase and Escrow

• If your offer is accepted, the title company will use your deposit to open an escrow.
• In about 30 to 45 days, you will have to deposit loan closing fees and sign loan documents, and your escrow should close.

"Other Home Buying Tips"

Negotiating a Sale Price

Negotiating a sale price usually starts with you making an offer on the home. This is usually less than the seller's asking price The seller can accept, reject or ignore your initial offer. He can also make a counter offer. This is a concession to lower the price to meet your offer at least part-way.

After the first counter-offer, the buyer and seller may go through a series of counter-offers to arrive at a sale price (if agreeing at all). This means the spread, or gap, between listing price and initial offer gets narrower. Armed with your own appraisal and inspection report, you can make an informed offer and more effectively negotiate a final sale price.

The sales contract defines the basic terms and conditions of your agreement to buy a home. It includes the sale price, property description, deposit amounts, mortgage financing, and any contingencies that might rescind the contract. Counter-offers that are subsequent to the contract's stated sale price are usually appended to the contract.

The sales contract also includes the terms for the loan closing, or settlement. List 1 is a checklist of some of the major items that should be included in the contract. List 2 is a checklist of major closing costs.

Taking title is one of the most important aspects of purchasing a home.  You need to decide how you will hold title before close of escrow.  Your attorney and/or accountant can help you with this decision.  Most married couples take title as Joint Tenants with right of survivorship.  Families who have a living trust can fund their property into their trust after close of escrow.  Here is a chart outlining Common Ways to Take Title compliments of First American Title Insurance Company.

Importance of Title Insurance

Why purchase title insurance?  First American Title Insurance presents 70+ Ways to Lose Your Home by not having title insurance upon transfer of property through escrow.  

You don't want problems from prior ownerships to interfere with your rights to your property. And you don't want to pay the potentially ruinous cost of defending your property rights in court.  A title insurance policy is your best protection against potential title defects, which can remain hidden despite the most thorough search of public records and the most careful escrow or closing.

Disclaimer: The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a mortage lender or financial adviser.