Buying a home is like hunting in the American west. Its takes a
great deal of experience combined with a great deal of knowledge
and planning. A hunter needs to research the particular animal
being hunted, understand the terrain, the habits, the process
and then the hunter needs to make a plan. If a hunter who has
never hunted in a particular region or the particular animal
jumps in their vehicle and takes off for the hunt without a
planning the odds of a successful hunt are minimized. The same
principles apply for a person in the market to purchase a home.
Buying a home takes a great amount of personal experience making
realtors with a high amount of experience extremely valuable or
even an individual who is buying more than just their first home
will be in a greater boat than a first time buyer. Even with a
realtor, or personal experience, just like the hunter, a buyer
needs knowledge and more importantly, a plan.
Realtors, layers, mortgage brokers, inspectors, sellers, etc.
all play a role in buying a home, and they will often times be
demanding and will want answers to their questions, having a
plan prepares a first time buyer or repeated buyer to answer the
demanding questions. A plan could do well to include answers to
questions like does the buyer want to be in a well established
neighborhood that has been around a while or do they want to be
in a new house in a new subdivision. Or questions like: is the
home due to a lifestyle change, or is the home more of a choice
and not a last resort spontaneous purchase. Many more questions
could be presented in helping develop a plan by an experienced
realtor.
If a hunter jumps in their truck and takes off to the hunting
site without first earning the money to fund the trip, the
hunter will fail. Just like a hunter must have money for gas,
ammunition, food, and a butcher, a home buyer must have the
money saved up for the down payment. Traditionally, a lender
wanted the buyer to put down as much as twenty percent of the
homes value on the loan to ensure the home buyer would not walk
away from the mortgage. Twenty percent is a lot of money for a
young home buyer or any person who has not had ample time to
prepare or save for a home. In the last decade many mortgages
have become friendlier with may appearing as low as five percent
down or even zero down. A word of caution, the lower the down
payment, the higher the interest will be on the home as a
compensation fort the risk.
After the hunter finishes the successful hunt and brings home a
trophy Elk in Colorado he now comes home and discovers that the
original costs of the hunt were just half the battle, now the
hunter must pay the taxidermist a large sum of money to stuff
the animal. The home buyer saves the money for a down payment
and then discovers the closing costs. Closing costs are all the
fees associated with closing on the loan. These costs could be
anywhere between three and eight percent of the entire cost of
the home. The closing costs must also be saved up for.
About the Author: This context about real estate is brought to
you by
http://ourbestrealestate.com/Gilbert_Real_Estate/city.html which
is a page dedicated to Gilbert AZ homes for sale.
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