The Home Buying Process
Some information taken from The Process of Buying a Home - A Modern Look by Brandon Cornett
The process of buying a house has changed significantly over the last few years. In fact, when you compare the mortgage and house buying scene of the 1990's to today, you can see a stark difference.
As a result of economic changes and other factors, consumers who are planning to buy a house should first understand certain concepts. In this article, we will examine some of the things that are different about buying a house today, and how it affects the buyer.
Economic Changes Affecting Buyers
The subprime mortgage crisis of 2007 - 2008 caused widespread economic changes. Many lending institutions went out of business, and thousands of Americans lost their homes due to foreclosure. This caused a general tightening of credit that affected consumers and businesses alike.
As a result of these and other factors, the process of buying a house in today's market is more challenging. For one thing, buyers need better credit scores to qualify for the best mortgage rates these days. Additionally, buyers with bad credithave fewer options today, because the subprime mortgage is practically extinct.
Credit has always been important when buying a house and applying for a mortgage loan, but today it's more important than ever. So there we have our first lesson for the aspiring home buyer -- you need to maintain a good credit score if you have one, or improve your score if it's low.
* Related article: Credit Score Needed to Buy a House
Professional Help When Buying a House
Another thing that's different about buying in today's economy is the diversity of real estate professionals that the modern buyer can choose from. In years past, there was really only one kind of real estate agent. They all performed the same basic tasks, and they all expected the same commission level -- more or less.
Today, however, there are all kinds of real estate business models. It's an important factor to understand when buying a house because it directly relates to your choices in professional representation. For example, there are companies today that offer select services for a lower commission than what a "traditional" real estate agentwill charge. But, just remember, you get what you pay for! A RE/MAX Agent is a true professional in the real estate industry. Their knowledge and know-how will serve your best interests in this highly litigious and highly emotional purchase.
Internet Tools for House Buying
These days, there are a lot of websites that can help you when buying a house and seeking a mortgage loan. In fact, almost every aspect of the real estate transaction can be done online today (aside from the actual transfer of property). For example, right here on this site you can look at homes online, research neighborhoods, get mortgage quotes from lenders, find an agent, and so much more! Be sure and bookmark our site and come back and visit it often as the information is updated regularly!
Being able to do so much research online saves you a lot of time when buying a house in today's market. For one thing, you can use the Internet to narrow down the area in which you would like to live. By focusing on certain neighborhoods like this, you will greatly reduce your house hunting and driving time.
Mortgage Options When Buying
Here's another area where you have more options than in the past. When buying a house and applying for a loan, you have a wider range of mortgage products to choose from today. While most of these loans fall into one of two categories (fixed or adjustable rate), there are many "hybrid" options as well. There are also all kinds of variations of the fixed-rate and the adjustable-rate mortgages.
Of all the topics covered so far, this is probably the most important. The type of home loan you choose will affect your financial future in many ways. And choosing the wrong mortgage (or buying over your head) could lead to disaster. Just ask the thousands of people who had their homes foreclosed on over 2007 - 2008. Many of them failed to do the proper research into mortgage loans before buying a house and taking a loan.
Our preferred lender is HomeTrust Mortgage. Madge Rashell and her team have been working closely with our Agents for over five years, and have over 50 years of lending experience between them!
We hope you find our site helpful in your home buying process and wish you the best of experiences!
