Begin by house hunting online, whether your agent is sending you homes listed on the market through the local multiple listing service, or you're checking out consumer-facing marketing sites like Zillow, Trulia, realtor.com or Redfin. It’s easy to narrow your online searches by setting boundaries around the neighborhood or general part of the city you hope to buy in.
Home ownership is a superb tax shelter and our tax rates favor homeowners. Sometimes the mortgage interest deduction can overshadow the desire for pride of ownership as well. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return. Interest is the largest component of your mortgage payment.
The home buying process is a considerably high-stakes endeavor, especially for first-time home buyers. According to the National Association of Realtors, buyers under the age of 36 have made up the largest proportion of home buyers in the U.S. over the last four years. Of this proportion, 66 percent of the buyers purchased a home for the very first time. Whether you are a first time home buyer or someone in need of a refresher, this comprehensive guide to the home buying process is just for you.
Your agent can provide detailed information on almost any property currently listed for sale. This includes Coldwell Banker listings as well as all other real estate broker listings on the Multiple Listing Service (MLS). Your agent can also provide information on homes that you see advertised for sale in the newspaper or online, such as properties that are advertised “For Sale by Owner.” Your Coldwell Banker agent is the only resource you’ll need.
A title search and title insurance provide peace of mind and a legal safeguard so that when you buy a property, no one else can try to claim it as theirs later, be it a spurned relative who was left out of a will or a tax collecting agency which wasn't paid its dues. A title search is an examination of public records to determine and confirm a property's legal ownership, and find out what claims, if any, are on the property. If there are any claims, those may need to be resolved before the buyer gets the property. Title insurance is indemnity insurance that protects the holder from financial loss sustained from defects in a title to a property, and protects both real estate owners and lenders against loss or damage occurring from liens, encumbrances, or defects in the title or actual ownership of a property.
Once you’re ready to start home buying, it’s offer time. Here’s where you’ll thank yourself for working with a real estate agent. They’ll help you determine the right offer to make for a particular house, including things that go beyond the dollar amount. For instance, offering an accelerated closing date or to buy and lease back to the buyer if they can’t move right away may be a smart move in some situations. When you make an offer on a house, the seller may accept it or counter-offer, and then your agent will help you decide how and if to negotiate. Once you arrive at a deal everyone likes, you’re considered under contract to buy the house.
How to avoid this mistake: Talk to a mortgage professional about getting pre-qualified or even preapproved for a home loan before you start to seriously shop for a place. The pre-qualification or preapproval process involves a review of your income and expenses, and it can make your bid more competitive because you’ll be able to show sellers that you can back up your offer.
The first step is to contact your local Coldwell Banker agent to begin the home buying process. If you are not already working with a Coldwell Banker agent, let our Agents & Offices Search assist you in finding one. By choosing a Coldwell Banker agent, you will have a professionally trained, experienced agent to offer you agency representation options and full service.
Before contacting a lender, it’s smart to check your credit report. By law, you can get a free report once a year through Annualcreditreport.com. The report pulls data from the three major credit-reporting agencies: Equifax, TransUnion and Experian. Having the information in hand before you talk with a lender lets you dispute any errors in the reporting. Based on your credit report, Fair Isaac & Co. (FICO) assigns you a credit score ranging from 350 to 850. The higher your credit score, the lower the interest rate on your mortgage. Scores are based on:
"This investment shouldn’t be entered into without someone who knows the market, the neighborhood, local trends, specific values, and how to navigate the process," says George Lawton, licensed real estate agent with RE/MAX Over the Mountain in Birmingham, AL. "A Realtor who is your advocate and is looking out for your needs can simplify this process and make it enjoyable. But don’t just hire your neighbor’s mom who does this part time for Christmas money. Interview a few that are recommended by friends and family and see who you feel most comfortable with. You may be working together for months, and you want it to be a good relationship."
Real estate agents are important partners when you’re buying or selling a home. Real estate agents can provide you with helpful information on homes and neighborhoods that isn’t easily accessible to the public. Their knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in can be extremely valuable. And best of all, it doesn’t cost you anything to use an agent – they’re compensated from the commission paid by the seller of the house.