Learn Your Home Buying Basics

First time homebuyers might feel better to know that they're not the only ones who are confused about the home buying process. Nearly all homebuyers feel the same way, even if they've bought a house in the past, because it's easy to forget the steps you took to get into a home once the event is in the past.

Learn the Basics!
Before you begin, get educated about the home buying process where you live. Relatives or friends who reside in another state might have some good advice for you, but chances are the process may be different in their area, so avoid the mistake of relying solely on their advice to make decisions.

So How Do You Learn the Basics?
Talk to a real estate agent about the typical home buying scenario. This is not a meeting that should lead to an agreement for the agent to represent you. It's simply a general discussion about the real estate procedures in your area. An agent should be more than happy to sit down with you and give you a brief rundown of the process.
If you don't want to talk with a real estate agent, how about a bank loan officer or mortgage broker? They look at home buying from a different perspective, but can usually give you a basic overview of the process.

Important Questions to Ask:

1. If you decide to work with an agent, will the agent help you draw up your offer to purchase a home? If not, who will? If the agent uses fill-in-the-blank forms, ask for a blank copy to take home and review.

2. What types of disclosures are sellers in your area required to give to buyers? Can the agent give you a sample copy of the typical disclosures?

3. What is the standard type of home inspection in your area? Are there other inspections that the agent recommends? How much do the inspections generally cost? Is that an expense the buyer pays for? When are inspections done?

4. Is a survey required? If so, who typically pays for it, the buyer or the seller?

5. Who does the title search to verify that the deed is problem free, attorneys or a title company? What's the average cost for that service and who pays for it?

6. Who acts as settlement agent, the person who puts together final paperwork for you to sign?     (attorney, title company, real estate broker)?

7. Other than loan costs, what's the average total cost for other closing costs and fees?

8. How long does it usually take to close on a home once an offer is accepted?

After you know the answers to these questions, you'll have a better idea of what the basics of buying a home are!