Buying a Home

This guide has everything we wished we'd known when we were buying our homes.

Here are the insider tips for buying a home, drawn from the collective knowledge and experience of our agents.

For starters, here are the basics of how to buy a home:

1. Decide if it's time to buy.
   Buying a home is both a financial and an emotional decision. Always do the math. If it works, and if you're pining to be lord of your own castle, it's time to buy.
2. Know what you want.
   House or condo An apartment you own, as opposed to rent. Condo developments are managed by a homeowner's association that collects monthly dues, maintains operations and enforces policy. ? New or re-sale? Big yard or short commute? How many beds and baths? Create a prioritized list of the things you want.
3. Figure out what you can afford.
   Don't forget you'll be paying more than the mortgage every month: factor in the closing costs Fees incurred in addition to the purchase price of a home that will be listed for both the buyer and the seller on the final settlement statement before closing. , property taxes The tax paid by homeowners to the government determined by an assessment. Homeowners pay this tax annually, semi-annually or as part of a monthly mortgage payment. , homeowners insurance Insurance buyers need to purchase when they apply for a mortgage loan to guard against potential damages to their future home. , and utilities. And assume you'll need to fix things sometimes, because they will break.
4. Choose an agent.
   You want a full-time agent with lots of deals in the neighborhoods where you're looking to buy. Make sure you know what services the agent will provide and how he gets paid.
5. See a bunch of homes.
   Bring your camera and take notes. Trust your gut impressions, but don't forget to kick the tires. Does it get a lot of light? Is there any mold? Can you hear the neighbors?
6. Find a deal.
   You'll find the best deals when the home-owner is willing to haggle. Sellers are often ready to deal when they have to move, the home is empty, or the property has been on the market for 90+ days.
7. Make an offer.
   Do your homework: a comparative market analysis (CMA) will tell you what the fair market value The price of a home that a buyer and a seller agree upon to the best of their ability and their own personal interests. of a home is.
8. Shop for a mortgage.
   Get a fixed-rate conforming loan – avoid adjustable rate mortgages A loan with a fixed interest rate for a specified amount of time and a floating rate for the remainder of the period. . If you use a mortgage broker A middle man between borrowers and banks who shops around to find a borrower the best loan. , ask about her fee and the yield spread premiums The amount a lender pays a mortgage broker to sell his borrowers a loan with a higher rate. .
9. Close the deal.
   Once your offer is accepted, a title company will review the title A legal document listing the history of ownership of the home. A title report lists all parties with a legal claim to the property, what items need to be cleared from title before the new buyer can take possession, and if there are any easements or encroachments on the property. and you'll get the home inspected A thorough investigation of a home by a licensed inspector to discover any issues or repairs that need to be made before buying the home. . On the closing date, you'll sign the mortgage agreement, the seller signs over the deed A legal document filed with the county that documents the transfer of home ownership. and you get the keys to your home.