There are a lot of things that come into play starting from the selection of the ideal real estate property all the way through the closing of the home buying deal.
With the events and challenges in the real estate market today, you need to have a reliable "survival kit" in order to come out in one piece when you set out for your real estate buying activity.
Establish Your Comfort Zone Most real estate experts stress that the best way to make your selection of your dream home is to look at it from the perspective of its being a lifestyle investment.
Nonetheless, determining your comfortable price range is essential as you need to narrow down your search to those real estate properties which you can really afford.
How do you work out the figures? You need to determine your income and compare the amount with your expenses.
The difference between these two figures will give you a ball-park figure that can reflect your current financial standing.
Logically, you need to have a net amount which must be comfortably above your expected monthly mortgage.
Determine Your Ideal Neighborhood Before you even come up with your shortlist of potential real estate properties to buy, you must be able to look at the conditions in the neighborhood.
Critical variables such as presence and accessibility to essential amenities and services must come into play in your selection process.
Other parameters such as transportation, taxes and security will also have to be considered.
Once you are able to cover all these items, the next thing that you must look into is the zoning law being enforced in the area.
Assess Your Financial Options This is easily one of the most critical parts of the real estate buying process.
Obviously, you will want to buy the grandest real estate property included in your shortlist.
Unfortunately, you will have to contend with the limitations set by your financial condition as you don't want to be bogged down by mortgage payments that you can't afford.
Your loan officer can present your financial options and provide you with a budget range where you can comfortably pursue a possible deal.
In most instances, your debt to income ratio will be discussed and explained to you by your loan officer.
It is also advisable to have yourself "pre-qualified" by your lender before shopping for your dream home.
This process shall be able to give you a clear cut demarcation for the types of real estate properties you must consider in as far as your actual financing options are concerned.
Hook Up with a Realtor A professional and credible realtor is an important element in the entire home buying process.
You don't want to end up with one whose only concern is to earn his keep out real estate deals.
You must go the extra mile and observe due diligence in getting the right realtor who can help you go through the entire home buying process.
Look at the background and record of the realtor.
Ask relatives and friends for some lead information.
You must also get feedback from previous clients of the realtor.
Understand the Seller's Asking Price The asking price of the seller is the major challenge of the whole buying process.
You will have to analyze and understand the variables that were considered by the seller in coming up with the figure.
The expertise of your realtor will come in handy in this instance.
You have to understand that the asking price is literally what your seller is asking from you and it is not a final figure.
You will have to carefully come up with your counter-offer after due consideration of several critical factors.
In the determination of your counter-offer you will normally have to review and assess, among others, current as well as recent price trends in the area.
It is essential for you determine whether the asking price is over-priced or reasonable based on existing trends in the market.