How does the process of purchasing a home for the first time work, exactly?
November 15, 2011 4:17 PM Subscribe
I hear that now might be a good time to buy a house. I have no idea how this process works, having rented my entire life. Beginning with the basics, how does this work?
posted by radiosilents to home & garden (17 answers total) 33 users marked this as a favorite
We would be getting a mortgage, presumably, as we do not have enough cash on hand to buy a house outright.
Do we approach the bank before having a property in mind, or after we've selected the property we want to acquire? Do we approach the same back we have a checking/savings account with? Does the choice of bank have a significant impact on the outcome? In what ways do the general current economic circumstances affect this process? What pitfalls should we be on the lookout for?
We have no desire to purchase something above our means. We're a married couple, mid-30s, single income, no kids, looking for a small-to-modest home to call our own. I'm hoping we can get our mortgage payment in the range of our current rent payment (sub-$1000 per month).
I know a great number of people are losing their homes under tragic circumstances right now and that home values are falling rapidly as the market corrects itself. Is now even a good time to get into the home ownership game, or does that actually make it a good time to be in the market to buy? Are the qualifications for loan approval more stringent now as a result of the current situation?
I'm sure I don't even really know what questions to ask, but I'd certainly like to know what our options are.