The Home Buying Process In Usa: Step By Step

[hydKaSher]

Nice baa. konnava leda inthaki.. Congrats okavela kununte, oka inti vadivi ayyav anamata

[k2s]

manam offer ichaaakaaa , aftger inspection emaina bokkalu unte ela ? malli inkoka offer ah

offer ichemundhu inspection cheppisthe ??

appudu offer withdraw chesukuntav... It's a loss for both buyer and seller.. A house back on market osthundi... With a negative mark... Saying once house sale pending and back on market ani... Antey next buyers will understand that house inspection or some paper work deggara Edo ayinddi.. Ani

[andhravodu]

Pre approval ki wellsfargo 2 days lo chesaru

[andhravodu]

asking price.. you can always negotiate... depends on what type of home u r buying.. used home aa new built aa
negotiation lo mohamatam padakunda beram aadukovali

Mee texas lo 500k antaga houses, enta digostaru beram adite

[SNOW_MEGA]

gp

[andhravodu]

appudu offer withdraw chesukuntav... It's a loss for both buyer and seller.. A house back on market osthundi... With a negative mark... Saying once house sale pending and back on market ani... Antey next buyers will understand that house inspection or some paper work deggara Edo ayinddi.. Ani

seller can ask to waive inspection contingency. Ala waive cheste, u will be on hook for lawsuit and damages

[andhravodu]

Avi carfax info laga vallaki anukoolam ga untay emo bro...manam cheyinchadam bettr ani naa feeling

Your bank will always ask for a new homes inspection

[Chitti_Robo_Rebuilt]

Gp bro
Couple of questions:
Bank lallo Oka 5 banks check cheysam anuko 5 times hard enquiry padutundi kada?
Inspection ayyaka vadu Adi chyapinchu idi change cheyy antey Naku avasaram Ledu ani cheppeyocchaa?? ARM lo teesukovadam better aa fixed lonteesukovadama loan?

[Balanam_rodanam_Balam]

Here is my version lo home buying

 

BUYING A HOME GUIDE

 

Here are few things that you need to consider before you get started. This is completely based on my buying experience/ understanding in Texas and I am in no way responsible for anything.
 

Price Of The House

First decide on how much you want to spend on the house. To easily understand I would explain the process based on the following figures.
Price of the House: $200,000
 

Financial Support for Your House

The first thing you may want to start with is to have enough savings in your account before you even start looking for a house. I would say have at least 20% (down payment) of the price of the house. Lot of people think they would start looking for a house and make up the amount by the time they find one which I would say is not a good idea.
In this case have at least $40,000 

You can also start with minimum of 5% and can find a lender who would lend you 95% of the amount. But in this case you need to pay PMI (Private Mortgage Insurance) until you reach your 20% and ask the lender to remove PMI on your account. I would strongly suggest having at least 20% of the amount in your savings.
PMI: Lenders mortgage insurance (LMI), also known as private mortgage insurance (PMI) in the US, is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. It is insurance to offset losses in the case where a mortgagor is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property. Typical rates are $55/mo. per $100,000 financed, or as high as $1,500/yr. for a typical $200,000 loan. (Source from Wikipedia)
Make sure you have good credit scores and have your other loans cleared which will be easier to get approved for a loan and look around for lenders who is offering loans with less APR (Annual Percentage Rate)
APR: http://en.wikipedia.org/wiki/Annual_percentage_rate

Getting a Pre Approved Letter

After you choose a lender ask them for a pre approved letter for the amount you are planning to spend on the house which in this case is $200,000. Most of the home owners who are selling their house would not want to show their home for people who are not pre approved.
Here are some of the documents that will be asked by the lender for a pre approval letter. It might be different for different lenders.
* A copy of your W-2 statements for last year.
* A copy of your spouse's W-2 statements for last year.
* A copy of a recent pay check stub from your company.
* A copy of a recent pay check stub from your spouse's company.
* Copies of the most recent month’s bank or brokerage statements to verify your deposit accounts.
Additional documents based on your lender.

Start Looking For a House

Target the areas you want to look around, drive by the communities and look around if you like them or not, make a note of the areas you like.  Most of the people who are planning to buy a house will check the school zone for that community. You will know the schools from your cities real estate website. Make a note of the schools for the communities you like and check the ratings of those schools online.
Schools Ratings: http://www.greatschools.org/
I would suggest drive around 08:00 AM or 05:00 PM on a weekday around the community since that is the busiest time. Once you have your list sorted out find an Agent in that area which you can find on the cities real estate website. You can also find his ratings on the same website.
 

Working/ Understanding the role of the Agent

In most of the cases there will be two agents one from the buyer's end and the other from the seller's end. Talk to your agent and ask him to show the houses you like by scheduling an appointment with the seller and their agent. Your agent will also help you find houses in the area you like and also can give you feedback on those areas, but however it is not a good idea to depend on him completely, I would suggest doing your part of the research. You might want to send your pre approved letter to your agent so that he can forward the same to the seller. You do not need to pay anything to the buyer’s agent. Once the seller sells the house a 6% of the amount is shared between seller’s agent and buyer’s agent so the buyer agent will get a share of 3% from the seller. Most of the buyer agent will give you back 1% of his 3% share and will add that amount to your closing amount, depends of the way you deal with the buyer’s agent.

Appraisal Amount (Real Estate)

Real estate appraisal, property valuation or land valuation is the process of valuing real property. It is the amount that is calculated based on few things such as your community/area, size of the house; year built etc, this amount may not be same as the price listed by the seller. When you are ready to negotiate you can ask your agent to do comparisons of the neighborhood houses and their sale price this year and the previous year.

Appraisal: http://en.wikipedia.org/wiki/Real_estate_appraisal

Earnest Money

Once you decided on a house you can negotiate the price by comparing the properties of your house with the others in your neighbor hood sold in that year and the previous year and you might get an estimate what the house is really worth and once both seller and buyer came to an agreement buyer need to deposit an amount close to $1000 as "Earnest Money" in the name of the settlement company which will later be added to your closing and also sign a contract. Make sure you have all the documents handy which you might need.
Earnest Money: http://en.wikipedia.org/wiki/Earnest_payment


 

Closing/ Settlement

Once the buyer and seller come to an agreement also decide on the closing date which I would suggest should be in between a minimum of 4 week and a maximum of 6 weeks. Closing is the day you do all your paper work, hand over the money and get the keys for your house. Also ask the seller on what day they are planning to move out.
Please note there will also be a closing fee in addition to the down payment which are around $5000 for a house around $200,000.
Closing: http://en.wikipedia.org/wiki/Closing_%28real_estate%29

Terminating the Contract/ Option Fee

If you decide to terminate the contract make sure you pay an "option fee" which will be around $100 to $200 to the seller at the same time you pay the earnest money. Please decide with the seller the time you need to think about the house which will be usually a week and please note the option fee is not refundable also make sure all the negotiations go through the agents.
So you will have a week to get your house inspected and decide whether to go ahead or not.
Find a home inspector and a termite inspector and schedule an appointment with them and get a full feedback from them about the house, also get the buyer agent involved and let the seller that you want to do a home inspection.

Home/ Termite Inspectors

A home inspector would check every inch in the house from plug sockets to AC/ Heater etc and will give you a complete report of the house, this will usually take around 4 hours and may charge around $300 to $500, it may also depend on the area.
You have the right to ask the seller to fix things in the house on his expense or you may terminate the contract.

A termite inspector checks if there are any termites around or inside the house suggests if it needs any treatment. He may charge around $100.

Make sure you have all this done within the time you can terminate the contract.

Working with the lender

Now this is the major part, make sure you start the process as soon as you have your inspection done. Here are the steps involved with the lender.

 

Once you choose your lender make sure you open an account with them as soon as you can, please call the bank and ask the procedure to open an account. Once you have that done your loan officer might ask you to sign few initial documentation.

 

There might be two types of Loans
Conventional loan-Lower rate with (standard fees) on a 30 yr fixed loan
Conventional loan-Increase rate to pay portion of closing costs 30 yr (reduced fees)
Pick the one which is right for you.
The bank will do a initial credit check with your approval to check if you really qualify or not, this is different from the pre approval letter.

 

The bank will do an appraisal for your house at your expense to understand if your house is really worth the amount you are asking for. Make sure you have enough amount in your account for the bank to start the appraisal process. The amount they charge is around $400 to $500 and it will take a week for them to get back. If there is a major difference between the amount in your contract and the appraisal amount the bank might not lend you the money. You will also get a copy of the appraised amount from the bank.
The appraisal amount is no way connected to your agreement amount with your seller and the seller does not know what the appraised amount is unless one of you let him know.

Ask the seller for a servery report of the house if they have any and if it is older the bank has to re do the survey at your expense which will be around $500.

Once they have it done and based on your documentation they are given to an under writer to start working on your case. The underwriter might ask additional documentation for him/her to finish working on you case. Here is the list of documents that will be needed.
* Drivers’ license (also need social security cards)
* 30 days paystub
* Last 2 years w-2's
* Last 2 years Business and personal tax returns will ONLY be needed if you are over 25% owner of your company OR you receive 1099/commission income OR you report any rental income on your returns
* 2 months of assets-all pages (401k, stocks, bonds, bank statements, etc.)
* Signed initial paperwork-will send from the bank email (in next email).
* Mortgage statement-for any properties owned
* Contact info for home insurance company-we will eventually need-you can use any home insurance company.
* Copy of Survey comes from the seller-if available.
* Copy of contact-when you find your home.
* Other Loans

1. Please make sure your last 60 days bank statements do not show any transfers from or into your account, if you have any you should declare them in writing for each transaction.
2. Please have a letter ready if you are declaring a gift amount from somebody.
3. Some banks might even ask for the transactions of the other person statements if he/she transferred amount to you in the last 60 days, also statements of the person that is gifting the amount. They want to make sure that there is no "money laundering".
4. They will keep monitoring your credit history until the night before your closing to make sure your credit report did not result in any new loan.
5. Make sure you have enough money in your statements to get your loan approved faster, which in this case is around $48,000 for a $200,000 house.

Once you have turned in the requested documents to the underwriter, they will finish working on your case and send it back to your loan officer where they finally make a decision on your case.

Home Insurance

Start working with your agent as soon as you are done with your inspection, I had all my insurance policies with one agent since they offered me multi policy discount. I am suggesting to start on this as soon as possible because even the insurance agents want to inspect the house at their expense before they offer you with a insurance quote, they might give you an estimate but before inspection which may not be final. Home Insurance for the house will be around $1500 a year for a $200,000 house.



At the time of Closing

Once you got your loan approved your bank will send you an amount that you need to get to closing or settlement agent and please get a cashier’s check or a demand draft for that amount and no personal check are accepted. Get ready to sign a number of documents and please ask the settlement agent if you have any questions on these documents, generally they would hurry you to sign the documents since they want to finish their part as soon as possible. Also take two forms of photo ID with you.
You can ask your agent to ask the seller to have a look around the house one final time after they moved out.
Once you have all the documents signed which will take around an hour to two, get your keys to your new house.



Things to do after Closing

Apply for your homestead exemption on your taxes. This depends on your county and deadlines will be usually at beginning of the year.

 

[Balanam_rodanam_Balam]

appudu offer withdraw chesukuntav... It's a loss for both buyer and seller.. A house back on market osthundi... With a negative mark... Saying once house sale pending and back on market ani... Antey next buyers will understand that house inspection or some paper work deggara Edo ayinddi.. Ani

 

may be not always right...buyer loan approve kaka backout ithe...then what...seller tappu lekapoina house meeda remark padadu ga...

[Lukewalker]

little more info from my end: 

 

downpayment decides your mortgage monthly payment, if you put 20% or more you dont have to pay mortgage insurance which will be $150-$250 basing on your house selling price. lesser downpayment means additional $200 approx to your monthly payment. 

 

get the roof, siding, foundation checked specifically. these are major expenses if something goes wrong. 

 

offer accept chesaka, you have to put some down payment as advance and  contingencies ani untayi

 

1) Inspection contigency = you can do inspection before giving offer or after giving offer. Lets say seller asking price is $500k, you offered $450 and seller accepted. Then after inspection you found out that there are so bokkas, you can counter your offer with this contingency, and offer lower price, eg : $430k

 

2) Mortgage contingency = pre-approval doesn't mean you got the loan for sure. there is a lot of paper work that needs to be taken care of and loan underwriters are very strict about that. so with this contingency, you can walk away from the offer and get full refund of your down payment(advance). 

 

3) final walk through: a day before closing, you can go and walk through the property to see if everything is exactly the same. if there are any differences then you can walk away. 

 

if you dont have these contingencies you will lose your advance, if you want to walk away from the offer

 

 

next is title insurnace: You have to take insurance on your home's title(just like car title). if seller has some unpaid taxes or loans on this home, they will be transferred to you, after you buy the house. this title insurance will save you from those expenses. 

 

choose a attorney to take care of all these, ususally lenders will refer their attorneys. these are mortgage speciality attorneys. 

 

while taking house insurance, read everything what it covers and what it doesnt. for example water pipes from house to main line in the street are not covered by normal insurance, if they break you are responsible, so you have to add this to your policy, 

 

I will add more info when I remember more

[Lukewalker]

Gp bro
Couple of questions:
Bank lallo Oka 5 banks check cheysam anuko 5 times hard enquiry padutundi kada?
Inspection ayyaka vadu Adi chyapinchu idi change cheyy antey Naku avasaram Ledu ani cheppeyocchaa?? ARM lo teesukovadam better aa fixed lonteesukovadama loan?

 

okesari 5 hard inquiries for same mortgage purposes ayithe lite, future lo all these will be considered as single inquiry. 

 

if you ask me, interest rates are low now and are increasing slowly, i opted for 30 yrs fixed, who knows if the interest goes up tp 7%-10% down the lane, i got the loan for less than 3% couple years back. 

[Shilpaa]

okesari 5 hard inquiries for same mortgage purposes ayithe lite, future lo all these will be considered as single inquiry. 

 

if you ask me, interest rates are low now and are increasing slowly, i opted for 30 yrs fixed, who knows if the interest goes up tp 7%-10% down the lane, i got the loan for less than 3% couple years back. 

Hi give ur suggestions on this... 

 

we are planning to buy a new construction with a big builder like M/I homes, we bargained and all n finally he gave a figure of 400K anuko... 

 

then we agree and construction starts and closing will be after 6 months. appudu evaluvation appudu home price taggey chances untaya? perigey chances kuda untaya?? asala difference vasthe em cheyyali?? 

also if we are going with builder mortgage company only... so vallu aa difference vasthe chupisthara or cover cheysesthara??

 

 

i know i asked too many ques... just answer what all u can . 

[JANASENA]

sorry was unable to answer your Qs. TL gaadu vachi work ichadu  

[ronitreddy]

pin this thread man