Easy Steps To Buy a House

First Time Home Buyers Guide

First Time Home Buyers Guide

If you are getting ready to purchase your first home or if you think you can't afford to purchase your first home, don't make another move until you have read this important information! Every year, Federal, State and Local government and community development programs help thousands of people obtain there first home.

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Easy Steps To Buy A House

If you are a first-time home buyer, this ebook guide is the only source that you will ever need. No matter what beautiful home you want, this books shows you the specific steps that you need to take in order to get it. You will learn all of the important steps in buying a house; you will learn how to find the perfect real estate agent, how to find the right lender, how to get pre-approved for your loan. You will learn how to find the perfect house for your needs, how to get the funds for it, and how to make sure you do not get taken in by a false loan scheme. You will learn the process of negotiation to make an offer on the house, the closing process, and the most important part: how to settle in to your new-found home. This ebook will save you money and time in the home-buying process!

Easy Steps To Buy A House Summary

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Author: Itzel Machado
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My Easy Steps To Buy A House Review

Highly Recommended

The very first point I want to make certain that Easy Steps To Buy A House definitely offers the greatest results.

As a whole, this book contains everything you need to know about this subject. I would recommend it as a guide for beginners as well as experts and everyone in between.

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The Urban Housing Market History Progress and Problems

Housing is a consumer product, not a welfare product, says Zhao Chen, director of the government's housing reform office. Government efforts to make this statement a reality commenced over two decades ago. Solving housing shortage problems by Increasing the quantity of housing built was the focus In the early 1980s. In 1994, several reforms promoting homeownershlp over public rental and the development of housing markets were unveiled by the Housing Reform Steering Group of the State Council. These privatization reforms have resulted In large changes In the housing sector China currently has one of the highest homeownershlp rates In the world (Duda, Zhang and Dong 2005). allow employees the means to buy housing, thereby switching the enterprise stake in housing from directly providing the home to providing the monetary means to buy a home. This also means these first-time home buyers must up the security of housing provision in hopes that the new housing market will provide better...

What to Look For in a Home Inspection

Further, sellers now expect a buyer to insist on a professional home inspection. After all, it protects the seller, in many cases, even more than you The reason is that while sellers may know many of the home's problems (such as a leaky roof or broken window), they may know next to nothing about the house's heating system or its foundation.

Professional home inspection

When selecting a professional home inspector, choose one whose sole endeavor is inspection. It is advisable not to use an inspector who is affiliated with an exterminating company, a real estate broker, or a contractor (plumber, electrician, roofer, and so on). The inspector must be completely unbiased and must not have a vested interest in finding problem conditions. Licensed professional engineers who specialize in home inspections have an advantage (because of their training) in that they can evaluate certain problems in depth.

Home inspection limitations

A home inspection is not perfect and will not necessarily reveal every problem, but it is the best thing available. A home inspection is basically a visual inspection as well as an operational check of the various visible elements and components of the house. If performed in the manner suggested herein, you should have a fairly good picture of the condition of the house at the time of the inspection. By taking into account the age and present condition of various items, predictions can usually be made about future problems. However, a home inspection cannot reveal a deficiency or problem if the conditions causing it are not visible. The following are just a few examples of such possible situations Even with such limitations, a proper home inspection will reveal considerable information about the house that very often even the owner does not know.

Private home inspection warranty programs

For an additional fee, some private home inspection companies offer a warranty protection plan after they inspect the house. The warranty applies for a twelve-month period and is usually effective from the day of the inspection or the transfer of title. The warranty plan is basically an insurance program. In fact, in some states, inspection companies have been forced to drop their warranty programs because they were not licensed by the state insurance commission to sell insurance.

Inspection procedure

There are certain limitations in a home inspection with regard to a swimming pool that you should be aware of. With no splashing, the average water loss in one week from evaporation is less than 1 inch. There could be a leak in the underground piping that causes the water level to drop more than what would be expected over a 24-hour period. This is a major problem to correct, but it will never be picked up during a home inspection. Pools lose water continuously through evaporation, splashing, and on the bodies of swimmers as they get out of the water. This is normal. However, a steady drop in the water line even when the pool is not being used may indicate a leak. This item should be discussed with the seller. In addition, the chemical composition of the water is generally not checked as part of a home inspection because it is considered to be normal ongoing maintenance.

Heating and airconditioning systems 258

If you are considering the purchase of an existing building, there is a high probability that the house is not as energy efficient as it could be. Although the energy-deficient items are usually found during a prepurchase home inspection, they are often not upgraded until the buyer takes possession of the house. Consequently, after you move into the house, you should perform an energy audit to bring

Radon level Recommended action

Canisters can be purchased in hardware stores and home centers. Also, in many areas professional home-inspection companies offer radon-testing services. If you intend to place the radon-detection canister yourself, make sure that you follow the directions carefully otherwise, the results might be inaccurate.

Water pressure and flow

The water pressure in a house is an item of concern to most home buyers, and rightly so. However, water pressure per se is not usually the problem. If you see water trickling out of a faucet, it does not necessarily mean that the pressure is low. It means that the water flow is low. Low water flow can be caused by low pressure. However, more often than not, low flow is caused by a constriction in the supply pipes. The constriction can be the result of mineral or corrosive deposits on the inside diameter of the pipes, a kink in the pipe, or small-diameter piping. Quite often low flow at a fixture is caused by a partially clogged faucet aerator, which requires only cleaning. Water flow is measured in gallons per minute, and a sink faucet should be able to deliver 4 to 5 gallons per minute.

Electromechanical systems

This final check concludes your home inspection. You have now looked at every item in the house of any consequence and should have recorded on the worksheets all problems and deficiencies. Some of the problems you uncover might require the services of a professional for further investigation. All situations requiring the services of a professional are indicated in the chapters that follow.

Tools needed

Since the first edition was published, a number of electronic tools have come on the market that are being used by professional home inspectors. The one tool that I would recommend for homeowners and home buyers is a battery-operated moisture meter that checks for water leaks without damaging the surface being tested. One manufacturer of moisture meters is Delmhorst Instrument Co. They can be reached at (800) 222-0638 for information on purchasing a meter.

Panelbox interior

Because of the hazards involved, certain items should not be checked by the home buyer-owner, specifically those items found inside the main panel box. A professional home inspector or licensed electrical contractor checking the interior of the panel box can tell you whether the fuses or circuit breakers are properly sized for their respective branch circuits. Improperly protected branch circuits are found fairly often. for the master disconnect, if there is one. Figure 12-4 shows a circuit-breaker panel box with a 200-amp master disconnect. A home buyer seeing this would normally believe that the house is supplied with 200-amp electrical service, and rightly so. In this case, however, the inlet service wire is too small to supply 200 amps. When the cover was removed, it was determined that the inlet service was 100 amps and that the master disconnect circuit breaker did not provide the overload protection.

Violations

Electrical violations should concern the home buyer-owner because they represent potential safety or fire hazards. As you walk around the interior and exterior of the structure, keep in mind those items that are considered common electrical violations. If there is an outside pole lamp, are the wires leading to the lamp buried They should be. If a portion of the wire is exposed, is it stamped UF Sunlight Resistant This indicates that it can be used as exterior wire. Many times, homeowners unknowingly use interior-type wire as exterior wire. This is quite dangerous because sun, rain, or soil conditions can cause the insulation covering the wire to deteriorate, exposing the conductors. Incidentally, if there is an outside pole lamp, it should be turned on to see whether it is operational. If it is not, the problem may be as simple to correct as changing the bulb or replacing the switch. However, there might be faulty underground wiring. Do all of the outside electrical outlets have...

Sourcemilligauss

In order not to overreact to finding a mold buildup in the house, it's important to separate the hype from reality. Fortunately, extensive Stachybotrys mold is relatively rare, and the molds usually found in homes are the less toxic species. Exposure to mold spores in a house does not always present a health problem. The testing for mold during a home inspection is not considered necessary even though there are a number of companies selling kits that test for mold. According to the U.S. Center for Disease Control, It is not necessary to determine what type of mold you may have. All molds should be treated the same with respect to potential health risks and removal. If you detect a moldy odor in a room, look for water stains, even those stains that are dry to the touch. It is possible that there is mold buildup on the backside of the drywall or paneling. In this case further investigation is required. However, this type of investigation is beyond the scope of a home inspection and...

Contract

It is important that the clause be broad enough to include all the major problems that can occur in a house. Otherwise, there might be legal problems in backing out of the deal because of a major defect that was not covered in the contract. For example, many years ago I received a telephone call from a buyer for whom I had done a home inspection. The buyer indicated that his contract had an inspection clause that provided him with the option of declaring the contract null and void if there were structural deficiencies. That was basically the extent of the clause it was very limited. My inspection had revealed that the electrical service was inadequate, that the heating system had to be replaced, and that there was evidence of water penetration into the basement. After the inspection, the buyer decided that he no longer wanted to buy the house. He called to find out if the problem items were considered structural deficiencies. No, they were not, and unfortunately, because of the...

Watersupply pipes

During my inspections, I periodically find a lead inlet pipe. When I do, I always recommend to the prospective home buyer that as a precautionary measure the water should be analyzed. In one home, located in White Plains, New York, an analysis of the water revealed that it had seven times the allowable concentration of lead. Needless to say, that pipe was replaced.

Into the twentieth century

Although the Victorians had introduced and pioneered then radical legislation, the prevailing society of extreme wealth existing alongside extreme poverty had changed little, but the First World War was to bring social change on an unprecedented scale. Throughout the world, societies were changing as the horrors of the war began to emerge. The revolution in Russia had overthrown its ruling class Trade Unions in the UK were gaining considerable standing men were returning to England physically injured and mentally disturbed women had been employed in the previous male preserves and were not prepared to lose their emerging equality. There was a lot of pressure on government to act on ill-health issues such as tuberculosis and the still high rate of infant mortality. The emphasis was moving toward creating healthier housing and a better standard of living. In 1911, 9.1 per cent of the population lived at a density of more than two per room, and by 1921 this had risen to 9.9 per cent...

Linking housing and health

The English House Condition Survey (DETR 1998) continues to point to the fact that though most of the worst condition housing is in the owner-occupied sector (because this is the predominant tenure) as a percentage, the private rented sector suffers the worst housing, particularly to the most disadvantaged groups, such as the homeless in temporary accommodation and those otherwise unable to secure decent accommodation in the housing market. The Audit Commission Report on Healthy Housing (Audit Commission 1991) only comments on physical aspects on ill-health and makes no mention of mental ill-health such as depression. The government tends to focus on a medical rather than social model of health.

Finding a Good Inspector

Start by asking your attorney, friends, real estate agent and lenders for recommendations. You want someone with a good reputation and recognized professional credentials. Home inspection services may be listed in the Yellow Pages under Building Inspection Services, Engineers (Inspection or Foundation) or Real Estate Inspectors. Look for these qualifications The National Institute of Building Inspectors, founded by the HouseMaster of America Home Inspection Service (a franchise business), trains its inspectors following the standards set by ASHI, and requires its inspectors to carry liability insurance and meet certain continuing education requirements.

Special Situations New Homes Condos and Coops

When an apartment building is converted to condo use, the developer-seller must provide tenants (as prospective owners of units) with an engineering report on the condition of the building. In addition, a tenants association or condo-owners association may have, at some point, commissioned its own engineering report. Your contract to buy should be contingent on getting copies of all engineering reports and an inspection that in your judgment is satisfactory (see Chapter 7 for more on home-inspection contingencies). The Complete Book of Home Inspection,

Private Mortgage Insurance

Lenders usually require buyers getting conventional loans with down payments of less than 20 to carry insurance provided by a separate private mortgage-insurance company. The insurance is designed to protect lenders from losses in the event borrowers stop paying on their loans premiums typically are paid by home buyers.

How Do You Handle Paperwork in an FSBO Deal

You can't trust an inexperienced seller, one who probably lacks the knowledge to handle the paperwork for the transaction. This is an area that tolerates few mistakes. The wrong language, a misinterpretation of a law, the failure to include some important item such as your demand for a professional home inspection, could result in a bad deal that could hurt you or that might end up in litigation. You want it done right.

Vacant propertiesa national disgrace

English empty dwellings increased by 42 per cent from 539,000 in 1983 to 764,000 in 1993. This represented around 4 per cent of total housing stock, mainly being in the private sector. There are many reasons for this rise in the private sector, including complex reasons of ownership, changes in the housing market, lack of resources or interest and so on. There are approximately ten times the number of private sector than local authority empty homes (JRF 1994). Some of these are transitional, whilst others are problematic vacants. Some examples of vacant properties are shown in Figures 5.4-6.

Using the vacants to meet the need

The private vacant sector has several advantages. It already exists and a lot of vacant property can be brought back into use at relatively low cost in comparison with whole-scale redevelopment, particularly if there is a local demand for accommodation. It offers some variety and flexibility in accommodation type and location. There are many local authority structures and personnel already in place who can assist with the private sector, including housing advice, environmental health and landlord forums. They can offer flexibility of initiatives to encourage use and funding possibilities, such as grants and housing benefit, which the private sector does not cater for. Prioritising available resources into tackling vacant properties can have a substantial impact on the problem, particularly when grant activity is combined with nomination rights to access the private rented housing market.

Take the Lease Option Route

When home buyers are so scarce that cutting the price of the house isn't the answer, think about leasing instead, and turn the lease into a sale. The easiest but least-effective option does nothing more than give the renter the right of first refusal to buy the house. A better offer is a lease-option. This lets you tap into a wider pool of people buyers who could handle the monthly mortgage payments but don't have enough cash for a down payment.

Fall and rise of the private rented sector

Interpretation of the decline of the private rented sector falls largely into two camps. First is the view that it is not allowed to operate as a market. This view is mainly concerned with what is perceived as over regulation, which prevents the housing market from operating effectively. The second view is that the decline is due instead to wider social changes, fiscal policy favouring owner occupation as a tenure and the provision of low-cost social housing by a different provider. ten landlords rent as they cannot sell because of the nature of the housing market and their portfolios are likely to remain similar in the foreseeable future. Herein lies the problem. It has already been seen that those in a position to buy generally do, because this is generally more secure as well as offering financial advantage. Those able to access social housing secure a tenancy let at low rent, and normally on a secure tenancy. This leaves many low-income groups who have few, if any, choices in the...

What If the Seller Accepts and Then Later On the Deal Falls Through Because of Me

In the past when a buyer defaulted, a seller occasionally did sue for damages, thus tying up the courts and causing long-term problems for everyone concerned. As a result, liquidated-damage clauses for residential real estate have come into wide use in sales agreements and are accepted and even codified in many states.

Trapexpect Dirt And Minor Damage

What you need to look for is any significant breakage, damage, or other condition that was not there when you first saw the home or when you had your professional home inspection. Also, check for any damaged or broken items that the seller did not disclose in the sales agreement or accompanying documents. What specifically should you look for

Can I Afford to Buy a Home

Once the decision to investigate buying has been broached, it becomes a matter of determining what you can afford. To find out, most prospective home buyers usually begin the traditional task of putting together a budget of their income and expenses. Their two big questions are, How much money will I have to put toward a monthly payment How much money do I need for a down payment and closing costs Unfortunately, this is like putting the cart in front of the horse.

What an Extended Warranty Costs and What It Covers

You don't buy a ten-year warranty policy as you do a homeowners insurance policy. Instead you are automatically covered when you buy a home from a builder currently affiliated with a plan issuer such as Home Buyers Warranty. Each member builder pays a onetime premium to the plan issuer of between 0.2 and 0.5 of the home's selling price on each home it builds. (The following illustration is based heavily on the 2-10 Home Buyers Warranty plan other extended-warranty plans will differ.) During the full ten years of the 2-10 Home Buyers Warranty, the member builder (and your home) remains insured against certain structural defects. Only during the first two years of the plan will you receive additional coverage. Home Buyers Warranty enrolls about 13,500 builders across the country. For a list of members, write to Customer Service, Home Buyers Warranty Corp., 1728 Montreal Circle, Tucker, GA 30084 800-488-8844 www.2-I0.com Home Buyers Warranty, as the plan administrator, will act as a...

Using a Buyers Broker

The special fiduciary relationship between seller and agent should cause buyers to wonder whether they can trust the agent who is helping them find a house. How can an agent who is going to be paid by the seller, and whose pay will be based on how high the sales price is, negotiate in your best interest This concern about conflict of interest in residential real estate sales dual agency, as it is called is why buyer brokerage is a growing business.

Limited Personal Use Heavy Renting

Less-affluent vacation-home buyers need rental income to help carry their investment. They also need appreciation and tax shelter to make ownership sustainable. They may manage the property on their own or seek renters to supplement those lined up by their manager. They may not use the property themselves in the early years of ownership, or may do so only out of season (see the discussion on the trade-offs between personal and rental use, beginning on page 240). Owning vacation property in an area that becomes overbuilt driving down rental rates Less-affluent vacation-home buyers need rental income to help carry their investment.

If You Encounter Discrimination

Members of racial and ethnic minority groups often encounter overt or subtle discrimination when they go looking for a home to buy. A black family may be steered away from a neighborhood being told you probably can't afford to buy there. A seller may refuse to sell her home to an Hispanic family because she believes her neighbor would be angry. A Jewish home buyer may be told that an owner just took the house off the market, when in fact it's still available. A borrower may be turned down because we don't make loans under 50,000.

Kinds of Loans

Mortgage Strategies for Today's Home-buyers discusses different mortgage types, selecting the right mortgage to meet your timeframe and financial needs, biweekly and other payoff methods, worst-case ARM scenarios and more (also by HSH Associates, above include 3 for postage and handling).

Motivated Sellers

When people called us about helping them out of their situation, Gene always asked why they didn't sell it themselves or use a real estate agent. Every time they said they didn't have enough equity in the home to pay the agent's commission. Obviously no agent will list a home under those conditions. So the home owners were forced to try to sell the property themselves. They would run a small (cheap ) ad in the local paper and maybe put a (usually bad) for sale sign in the front yard, or, even worse, in a front window. Fewer than 14 percent of home buyers look in newspapers It's another important reason why you need to hire a real estate agent to list your property.

Put It in Writing

You can have your lawyer or buyer's agent draw up a purchase contract. Naturally, a contract used by a real estate agent acting on behalf of the seller is written to meet the needs of sellers, not buyers. It may lack important clauses and contingencies that protect you, such as a requirement that your offer be accepted within a specified time or become void, or a statement that the contract becomes binding on you only after it has been reviewed by your lawyer and after a professional home inspection satisfactory to you has been completed.

Installer

Just as there are companies that build skyscrapers and large subdivisions, there are also custom builders who are building fine homes and doing remodels. I don't think the market for custom homes will disappear because of a boom in the mass housing market. In fact, the desire for choice and individuality in the face of mass uniformity is often a driver for custom products.

The Radon Question

Once you decide to sell your home, you may want to test for it, especially if there have been radon problems in your area. In some areas home buyers are including contingency clauses in sales contracts that require a test for, and sometimes correction of, radon problems before they will buy. In most cases, unacceptable levels of indoor radon are handled by improving ventilation. You can request a free copy of the Environmental Protection Agency's Home Buyer's and Seller's Guide to Radon from your state's radon, radiation control or radiological health office, order it online or by telephone from the EPA, or read it at the EPA's Web site (800-490-9198 www.epa.gov).

Success

For a brief moment, we thought, Should we continue this pace for the rest of year Instead of buying 52 homes, should we see just how many we could buy in a year However, having done the 52 homes, I was reminded of some of the reasons I'd gotten out of residential, Dolf said. I hadn't done any residential property other than homes I'd bought to live in for some 15 years. I was reminded of the downside the phone calls you get in the middle of the night from people saying, 'My lavatory isn't flushing' or 'My tap is dripping' or some other seemingly minor thing. I decided no. The goal was 52 homes, as opposed to how many could we buy in a year. The fact we'd achieved it well within the allotted 52 weeks spoke volumes on our determination, systems, and perseverance.

Stakeholders

Effective policies must be designed according to an assessment of the stakeholder needs. Housing market stakeholders include occupants, potential occupants, developers, design teams, energy suppliers, and policy makers. A critical analysis of each stakeholder's set of needs and frames yields valuable information for policy designers. learning curve faced by China's first generation of homebuyers. Based on the survey results, during this period of high residential growth, sustainable homes would best be promoted to Chinese home-buyers by marketing the combined benefits of natural lighting and ventilation, better quality, and savings in heating and air-conditioning energy costs. In developments where the heating and cooling energy consumption of each residential unit can be separately metered and energy costs reflect real market costs, the energy costs to the homeowner will be a substantial portion of their income. In this circumstance, it is expected that energy efficiency will merit...

Trapyou Pay For It

Expect to pay for your home inspection, probably around 250 to 350. And usually the inspector wants to be paid at the time the inspection is completed, sometimes in cash Make sure to arrange for how you'll pay in advance so you don't get a nasty surprise. The time to insist on a home inspection is when you make your initial offer. Write it into the sales agreement. Make sure that it's a contingency of the purchase. (See Chapter 10 for a description of contingency clauses.) Sellers are almost universally prepared to let you have a home inspection. But they won't let you tie up their property indefinitely. Typically they will limit your inspection contingency by insisting that it be completed and your approval given within 14 days. If you don't approve, the deal's off and the house is back on the market. Indeed, many sellers will insist that they be able to continue showing the house and to accept backup offers until you remove the inspection contingency.

The Inspection

A thorough home inspection usually takes two or three hours. Most inspectors encourage buyers to accompany them. You'll have a better understanding of problems uncovered if you do. You can also ask questions of the inspector and get a sense of how serious the problem may be and how expensive it would be to fix. Come prepared to get dirty. If the house has a crawl space, go down there with the inspector and see whether routine maintenance chores in that space will be within your capacity.

The Cost

Fees for inspecting homes generally vary according to contract price and geographical area, and sometimes according to age, size and construction of the house. Assuming the home you're interested in is a fairly typical residential property, you should expect to pay, on average, between 250 and 300. Inspections in large metropolitan areas where homes are more expensive for example, New York City and San Francisco may cost more.

Hashing Out Disputes

New Jersey's New Home Warranty and Builders' Registration Act protects new-home buyers. Under the law, all home builders in the state must register with the state's New Home Warranty Program. New homes are covered by a ten-year warranty issued through the state's warranty plan or a state-approved private plan.

Finding an Appraiser

Pick a licensed appraiser who specializes in residential properties in your area. Ask local mortgage lenders for names of appraisers they use on a regular basis. Check the status of their licenses, work experience, training, credentials and education. Appraiser organizations, in which appraisers claim membership, should be able to tell you whether an individual is a member in good standing and has the credentials claimed. They may also be willing to give you names of other licensed members working in your area, so long as you don't ask them to recommend anyone something they can't do. You may also call your state's appraisal board (check the blue pages in your phone book) to check credentials, or contact the appraisal subcommittee of the Federal Financial Institutions Examination Council (202-8727520 www.ffiec.gov).

Equity Sharing

In a shared-equity arrangement, the home buyer and an investor frequently a parent, relative or friend buy a house or condo apartment together. It's one way for first-time buyers who otherwise couldn't afford to buy, or who wouldn't qualify for a mortgage, to do so. For example, rather than making a loan or gift to help a child into homeownership, parents become part owners and rent their share of the place to the child. As investors, the parents share in the appreciation of the house. As landlords, they also get rental income and the tax deductions that go along with rental real estate.

The Role of Policy

Perhaps the largest potential gains for energy conservation exist in making institutional changes to heating provision. In the past, heating, like housing, was a welfare good provided by the state. As with most publicly provided goods, residents have little incentive to conserve energy for heating if they do not have to pay for what they use. Because more than 80 percent of building energy consumption in China's colder regions is attributable to heating, improvements in conventional building practices could have a large impact. This necessary transformation of the housing market requires a multidisciplinary solution incorporating social, economic, and technical elements. Tsinghua University and the World Bank are currently working on a three-phase program to promote the pricing and billing reform of centralized space heating in China.