Buying a home is one of the most exciting times in a person's life so I'd like to lay it out for you so it is less daunting. But first a story about my first home purchase. It was in Camp Hill a long time ago...a time when mortgage rates averaged 9.19%. It was also a time when "The Sales Agreement" aka "Sales Contract" was a common practice. This means the seller was also the lender. The reason it was a common practice is because it was difficult for banks to approve folks for a mortgage because of the high rates, so if a seller needed to move and was willing to take the risk they would offer "Seller Financing". We had a 2 year balloon which meant we needed to get enough cash together for the rest of the down payment and closing costs. We were hoping rates would come down but, alas, a couple of years later they were still pretty high at 8.85% but we got our mortgage from a bank, paid the seller his money and lived there for a few more years. So, buying a home in today's market is a lot easier and money is almost free as interest rates currently are around 3.50%. But I digress... here are the steps to the home buying process;
* Get Pre-Approved
* Discuss your home wants and needs with your Realtor
* Select Properties to view
* View Properties
* Write an offer to purchase
* Negotiate terms
* Accept the contract
It is straight forward but exciting. Hire a Realtor you can trust and get along with so the process is less stressful.
PS interest rates averaged 11.2% when we bought our second home and 10.32% for our third home YIKES!