Why do you want to buy a house?

There are many reasons for home ownership: Financial incentives may include property appreciation and significant tax breaks that are only available to home owners. In addition to pride of ownership, home ownerships may offer stable housing costs, where the mortgage payments remain relatively stable as opposed to rents that typically increase year after year. However, there are some disadvantages. Owners will need to maintain and repair their homes on a consistent basis and have other expenses like property taxes and homeowner's insurance. Additionally, your investment is not easily liquidated and it could take months to sell your home.

How long do you plan to live there?

On average, people live in their homes is approximately seven to nine years. Understanding how long you plan to live in a home will affect your financial decisions with regards to your real estate investment strategy and appreciation goals. There are many economic and social factors that may affect your financial decisions and mortgage loan program.

Will this home meet your future need?

When deciding on the location, type and size of a home, be sure to consider your needs so that you do not outgrow of your home prematurely. Factors include if you plan to expand your family and if you plan to work out of your home.

Understand your financial situation and consumer credit rating.

Today's marketplace offers a mortgage loan product for just about any financial and credit rating situation. A mortgage consultant will be able to help decipher what are your mortgage options for your requirements.

What will be your monthly expenses?

Based on your income, you should consider what level of monthly expenses that you are comfortable. Expected increases with income may affect this decision. Typically, lenders consider that a borrower's expense should not exceed 36% of their total monthly income. However, there are many lenders that may work with debt ratios of 60% depending on assets and credit rating. You should also consider additional expense such as homeowner's insurance and maintenance.

How much cash do you need?

Typically, home buyers will need to bring cash for the down payment and closing costs. There are many mortgage programs that offer low down payments and 100% financing options. However, most programs require that a buyer at least bring in the closing costs.

Closing Fees. Get a Detailed Quote from FeeDisclosure.com

An instant detailed quote will provide an estimated closing cost listing all the typical services with their individual service fees.

Review and Interview your Service Providers

After getting your free FeeDisclosure Detailed Quote, you can review each web profile and interview any of the service providers listed. With a purchase transaction, typically, the seller chooses escrow/ closing agent and title insurance companies. However, all aspects in a purchase offer are negotiable with the seller and you should be aware of the differences in closing costs from what the seller may chose.

Real Estate agent and Mortgage consultant

A real estate agent and mortgage broker should be selected early in the process. They will be able to advise you on the different service providers, provide recommendations and help finalize your selections. If a recommendation is not a FeeDisclosure member, ask them to join. Membership is free and helps disclose their fees up front. In regards to commissions, typically, the buyer's real estate agent is paid by seller. A mortgage consultant is paid by two methods or a combination. The mortgage broker can charge either origination points or is paid directly by the wholesale mortgage lender by selling a higher interest rate. If origination points are charged, then the rate should be lowered.

Helps with purchase offer

Before setting out to search for your home, get pre-approved by your mortgage consultant. This will help you understand what are your monthly expenses and how much to cash is required for your down-payment and closing costs. When a seller reviews your purchase offer, having a pre-approved mortgage letter will your offer stronger.

Decide on a loan program

A mortgage consultant should offer multiple loan program options based on your financial needs, risk tolerance, and how long you plan to live in the home and consumer credit rating.

Get your Good Faith Estimate

The Good Faith Estimate is a standard disclosure form from the Department of HUD. Your mortgage consultant must provide you a good faith estimate of all your closing fees within three days of your application. While this is an estimate, make sure your mortgage consultant has included all line items charges from each service providers such as title insurance and escrow/ closing companies. Use the FeeDisclosure system to get a Fee Analysis of your line item charges.

Collect your financial information

Depending on the loan program and lender, financial and credit documentation may be required to submit your application for loan approval.

Consult with a Buyer's Real Estate agent

Since buyer's agents are typically paid by the Seller, buyers usually pay nothing for their service. Local real estate agents will have experience with the financial, legal process aspects of buying a home. They should have local knowledge of each neighborhood marketplace, property trends and issues. Use the FeeDisclosure detailed quote to review any standard fees and ask your agent how their commission structure works.

Check out the neighborhood.

Aside from solely relying on your real estate agent, conduct some basic research on each neighborhood. Many factors will affect the value of the homes such as population growth, schools, traffic, crime rate, zoning and work commutes. When you have narrowed your search, it can benefit you to simply drive and walk around the neighborhood to understand how it feels.

Submit a Purchase Offer

On average, house hunters look at 15 homes before making an offer. Once you have decided to make an offer, your real estate agent should be able to provide comparative market analysis (CMA) that helps determine the value of the home. Once you are comfortable with the offer price and other terms, your real estate will submit the offer to the seller. There may be several counter offers, contingency terms and service provider negotiations before final acceptance. If using the seller's service providers like escrow and title insurance, check their fees with a FeeDisclosure detailed quote.

Notify your Vendors & Open Transaction with FeeDisclosure.com

After your offer is accepted, notify all your service providers, especially your mortgage broker. Have your real estate agent or mortgage broker, Open your Transaction through FeeDisclosure. As service providers complete their services, FeeDisclosure will communicate their progress to you.

Conduct your home inspections and appraisal.

Once your purchase offer has been accepted, your real estate agent will help you with inspecting the property before you close. The seller is required to disclose any defects but it is also the buyer's responsibility to conduct their own inspection. If issues arise, like a major repair that is required, you may re-negotiate the purchase offer terms.

Review the property's legal situation.

Review the preliminary title report to check for issues such as easements, restrictions of use and additional claims. You can consult with the real estate agent, mortgage broker and title insurance officer.

Inspect the property's physical and structural condition.

Professional inspections can offer a comprehensive review of the property's condition. Every buyer should enlist the services of a professional home, pest, mold and radon inspectors to understand the current and possible future defects of the property.

Review your loan approval

Ask your mortgage consultant for your lender's approval. Review the approved rate, loan program and loan amount. Also, make sure the lender has approved your appraisal value.

Get an estimated Closing Statement (HUD-1) from your escrow/ closing agent.

Get your estimated closing statement 5-7 days before closing so you may obtain a certified/cashier check before the closing. Check to make sure there are no additional fees. If there are additional fees, get an explanation immediately. These fees may be negotiable, or there may be an issue that arose. Use the Fee Analyzer to help support your arguments.

Walk-thru

Before closing, conduct a final walk-through of the property to check for any changes. Refer to your purchase offer terms.

Satisfy your final mortgage conditions

Provide any other documentation to meet the lender's additional conditions or requests. Once these have been met, your loan documentation should be ready to print and be signed by you.

Sign documents

A public notary or attorney will be required at the signing of your various documents. Documents may include HUD-1 Settlement Statement (closing statement), deeds, mortgage notes, loan document disclosures, affidavits and other written instruments.

Record Instruments

Typically, the title insurance company will record the required documents with the county clerk or courthouse. This will publicizes that the proper documents have been filed to transfer ownership and mortgage notes. Once the recording is completed, all the funds will be released by the title insurance company and your transaction will be closed.

Rate service providers

After your transaction has closed, FeeDisclosure will ask you to rate your service providers. This will help reward companies for their good service and provide other consumers more information to make a smarter real estate decision.