The Home Buying Experience
Buying a home is one of the most important financial decisions
you'll ever make. A home can be an excellent investment
because most houses increase in value over the years. Home
ownership may also bring tax benefits. Here are some of the
basic steps you will take on the road to owning your home:
- Choose a lender.
- Learn the terms used in buying a home, condominium or co-op.
- Get pre-qualified, or even better, get pre-approved for a
loan.
- Decide on the type of home you want.
- Decide on the features you want in your home.
- Choose a real estate agent.
- Start house hunting!
- When you find a home you want and can afford, start to
negotiate.
- Make an offer in writing.
- When your offer is accepted, find an inspector.
- Find a lawyer if you feel you need one.
- Prepare for the closing.
- Move in. Congratulations on your new home!!
What Type of Home?You will probably
look at many homes before you make an offer on one. But even
before you begin house hunting, it helps to have in mind the type of
home ownership you want and the features that are most important to
you. Consider the following types of home ownership:
Condominium
As the owner of a condo, you own your living quarters (apartment,
town home, or other unit) in the same way that a single-family
homeowner does. You also own a share of the common space, such
as gardens, parking areas, and community facilities (e.g. pool, golf
course, recreation hall, and tennis court).
You pay a monthly maintenance fee for the common expenses. The
owners' association, which you belong to makes decisions about how
the condo is run.
Multi-Family
This type of home has separate living quarters for two or more
families to rent. The owner may be able to use rent from the
other tenants to cover his or her own housing costs. These
homes are often restricted to certain areas by zoning laws.
Single Family
This is the most popular type of home ownership. As the owner
of a single family dwelling, you are totally responsible for paying
the mortgage, property taxes, and any other carrying expenses,
including maintenance costs.
Co-operative
As the owner of a co-op, you buy a share or a number of shares in
the corporation that owns and manages the building your apartment is
in and the land it is on. If you took out a mortgage for the
apartment, you are responsible for paying it off. You also
must pay a monthly maintenance fee for your part of co-op expenses,
repairs, and taxes. You must be approved by the co-op board
before you can purchase.
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