How to buy houses

The first task facing the buyer: where to look for the right object to buy? If everything is clear with the geographical location in advance, then the question of its category should be decided taking into account specific circumstances.

Primary real estate market

Under the primary real estate market refers to new homes, when the buyer becomes the first owner. The developer is usually the seller. The buyer orders construction according to a specific project or chooses from ready-made options that have never been inhabited. There are several options for primary housing:

1. New cottage, built to order. This is the most expensive option when the developer builds "for you", according to a specific project.

2. Homes built specifically for sale. Usually, the developer builds several houses at once at his own discretion on the site allocated for housing construction, and buyers can choose the housing they like.

3. Unfinished or planned housing. In this case, the purchase price is significantly reduced, because. the buyer contributes his money directly to the construction. You can move into such a house only after 1-2 years.

Thus, in the primary real estate market, you can buy a private house that has never been in operation and is being sold by the developer. These objects have not been subjected to natural wear and tear and can be expected to have an extended service life. At the same time, they have not been tested in operation, and therefore the quality of construction will have to be checked very carefully.

Secondary real estate market

Secondary housing - these are objects that have been in operation and sold by the owner of the property. On the one hand, these are already inhabited houses. After visiting them, you can evaluate the degree of comfort and decide what changes should be made after the purchase. Factors such as the date of construction, ongoing overhaul, actual conditions and service life become important.

The main advantage of the "secondary" - low cost compared to the primary housing. However, it should be remembered that the risk of acquiring along with housing and additional problems increases. The house may be collateral for a loan, have encumbrances in court, have other owners, etc. All this requires a thorough check of the entire history of the property.

1. Decide Whether You’re Ready to Buy a Home

2. Make Sure You’re Not Tied to a Lease

3. Check Your Credit Score and Credit Report

4. Save For a Down Payment and Closing Costs

5. Have a Consistent Stream of Income

6. Figure Out How Much House You Can Afford

7. Find the Right Mortgage Lender and Loan Type

8. Get Preapproved for a Mortgage

9. Hire the Right Real Estate Agent For You

10. Start House Hunting

11. Make An Offer On A House

12. Get a Home Inspection and Appraisal

13. Secure Your Financing

14. Do a Final Walk Through

15. Sign the Papers and Close the Sale

5 stages of buying a house

Having decided where to look for a house, you can proceed to the next steps in buying it. This responsible event involves several important steps that must be taken to ensure the right choice.

Stage 1. Determination of location and cost

The choice of area of ​​residence is individual. Someone gives priority to the issue of organizing their own business directly on their site, some people tend to be closer to the city center, while others, on the contrary, run away from the hustle and bustle, to nature.

In any case, the following factors are taken into account:

• availability of children's institutions (kindergartens, schools);

• medical care, proximity to clinics and other institutions;

• organization of trade (shops, shopping centers, markets);

• transport accessibility, public transport routes;

• ecology, noise;

• safety.

Before you start looking for the right home, you need to decide on its price. It is necessary to soberly assess your financial capabilities and determine the upper price limit. You can think about a mortgage loan, raising maternity capital and other sources of financing the purchase. This will raise the price bar.

Stage 2. Search for ads

The most affordable option for finding a home to buy is to study ads for the sale of real estate. They can be found on the Internet, in the media, on special notice boards, and even on poles and fences. Свадьба в Израиле оренда дома для проведения свадьбы ! Homeowners themselves, private brokers and real estate agencies advertise. The latter option allows you to get rid of problems with registration, but it will cost more due to markups for the service.

One of the best options is to deal directly with the home owner. You can bargain with him, discuss important nuances of living conditions and the characteristics of the area. It is important to realistically assess the value of the proposal. Excessively cheap housing should alert. These may be houses with a poor history, design defects, dilapidated or too remote. Choose average prices.

Stage 3. Analysis of options

An important step is to view the option you like after a telephone conversation. It is necessary to visit the object in person, paying attention to all the little things, starting from the approaches to the house and ending with the utility rooms. It should be understood that the house was specially prepared for inspection by the buyer, and therefore problem areas may be well disguised.

A thorough visual inspection is required. Feel free to touch the walls and supporting structures with your hands. It is necessary to ask specific questions on the technical condition and living conditions. Try to find out the reasons for selling the house and its shortcomings. They will help to make a general picture of the object and conversations with neighbors. You should learn more about those who live nearby.

Stage 4. Checking documents

If the house was being prepared for sale, then the entire set of necessary documents should already be ready. It is necessary to check not only their completeness, but also their reliability. All documents should be carefully checked. They should not contain any errors. It is especially important to exclude the presence of fake certificates, copies and extracts. Documents must clearly confirm the rights of the owner, state registration, technical condition. If the buyer is not sure of his legal knowledge, then professional lawyers or realtors should be involved in the verification.

Stage 5. Conclusion of the deal

The final step is closing the deal. At this stage, it is necessary to resolve the issue, how to make a purchase and sale of a house]correctly . The transfer of ownership rights is carried out on the basis of the Purchase and Sale Agreement. It reflects all the agreed points - price, technical condition, terms of transfer and settlement, etc.

Before signing the Agreement, it is recommended to show it to a professional lawyer to assess the correctness of the drafting. Any errors can cause problems with further state registration and lead to litigation. The transaction is executed with the participation of the state registrar (notary). Payment must be made in front of witnesses.

Features of buying a house for maternity capital

One legitimate option to secure financing for the purchase of a home is to use maternity capital. A certificate issued by the state at the birth of a second child is often used to improve living conditions. When using maternity capital to purchase real estate, certain problems arise:

1. The use of a maternity certificate requires the approval. The buyer must apply for such a transaction.

2. The seller of the house is reluctant to accept payment in this way.

3. For housing paid by the certificate, there are increased requirements. Depreciation of the house should not exceed 50%.

The use of maternity capital for the purchase of real estate is provided for by law. As a rule, the amount of maternity capital is not enough to pay the entire cost of the house, but it can serve as a down payment for obtaining a mortgage loan. This will facilitate further repayment of the debt to the bank.

How to properly inspect the house - what to look for

The house is bought for a long time and should provide the most comfortable living. Inspection of its technical condition requires special care. It is best to involve a professional expert - a builder or a realtor with experience in assessing buildings to assess the quality of housing. Attention should be drawn to a number of key points.

Construction material

The reliability of the entire structure, its durability and indoor comfort are determined by the design and material of the walls of the house. The bearing capacity, strength, shrinkage, noise and heat insulation properties depend on this. The quality of waterproofing, insulation is checked.

The most common options are:

1. Wooden frame. The main problem is decay, and its traces must be identified in a timely manner. Another problem is significant shrinkage.

2. Brickwork. This is one of the most reliable options that provide good thermal insulation. Be sure to evaluate the thickness of the masonry and the quality of the brick.

3. Block construction. Distribution is found by gas and foam blocks. With this design, an important role is given to reliable insulation and waterproofing. Their quality requires a special check. It is necessary to identify traces of mold and fungi. The alarming factor is fresh external plaster. In this way, the seller can mask defects before selling.

4. Reinforced concrete panels. Of these, not only multi-storey buildings are made, but also budget private houses. Such buildings, as a rule, are cheaper, but have low heat and sound insulation. During the inspection, special attention is paid to the quality of the sealing of tile joints.

It is not possible to isolate any specific material. All of them have pros and cons, designed for different operating conditions. The buyer must evaluate the design himself, taking into account the technical condition, his own aesthetic preferences and financial capabilities. If necessary, you can consult with specialists.

Foundation

It is quite difficult to check the quality of the foundation, because its main part is hidden underground. A risky option is the lack of a foundation. Such a structure can only be used as temporary housing. You can evaluate the reliability of the foundation by indirect signs - cracks in the walls, subsidence of corners, high humidity in the basement, dampness on the floor, etc.

It is important to clarify the following parameters of the foundation:

1. Type of. The foundation can be tape, slab, columnar and pile. The most reliable and versatile is the tape design. Piles are necessary when building on swampy and loose soil.

2. Depth. It is best to choose a deep foundation. At the same time, its depth should be greater than the depth of freezing of the soil, but not reach the occurrence of groundwater.

3. Basement part. It is necessary for reliable protection of the walls from below. A high-quality foundation rises above the ground to a height of 40-60 cm. It is also worth checking for blind areas.

4. Waterproofing and insulation. They are hidden underground, but you can evaluate their quality. With good hydro and thermal insulation, the floor in the room will be dry and warm. The basement allows you to objectively evaluate this parameter.

The foundation should be checked carefully. Any traces of flooding from below, mold indicate the presence of defects. If there is a suspicion, it is recommended to consult a specialist. They can make special pits and accurately assess the condition of the foundation. Any deformation caused by subsidence of the foundation of the structure is extremely dangerous.

Roof and attic

The roof of the house should not be left unattended. The buyer, of course, does not want to start repairing it immediately after purchasing a home, after the first heavy rain. It is important to check the strength, tightness and reliability of the roof. Ideally, if the appearance of the roofing is attractive without additional costs.

When inspecting a home, check:

1. Rafter system. The condition of all load-bearing wooden beams (rafters) is checked. There should be no rotten areas, damage.

2. Roof covering. The material from which it is made is important (slate, metal, tiles, soft roofing, etc.). The condition of the coverage is assessed.

3. Waterproofing. If the inspection is carried out during the rain, then you can immediately assess its quality. In dry weather, traces of leaks are detected.

4. Gutters and drainage elements. They also need to be carefully examined and evaluated for effectiveness.

The attic should also be carefully inspected. Firstly, it can be used to assess the condition of the roof, because leaks are clearly visible here. In addition, the attic space, as a rule, has practical value. It can be equipped with storage of little-used property. Additionally, you can evaluate the possibility of arranging a warm attic or residential attic.

Heating

The normal temperature in the house, even in severe frosts, is an important condition for permanent residence. You can really appreciate its quality only in winter. Well, if there is central heating. In this case, it is enough to check the condition of the pipes and radiators, as well as the presence of air bleed valves. In houses without central heating, you must have your own heating boiler. A cheap option is a gas boiler. In non-gasified areas, liquid and solid fuel boilers, as well as electric heaters, are chosen.

Water supply

The ideal option is centralized water supply, incl. hot water supply. If not, then you need to find out from which source the water supply is provided. Samples should be taken and quality checked. With your own water supply system, you need to check the condition of the highways and equipment.

Water heating is often provided by gas water heaters. Electric heaters (flow and storage) can be used. It is necessary to check the technical condition of such equipment, as well as documents for putting it into operation.

Plot

The private house is located on a concrete plot of land. Of interest are its dimensions, shape, relief, composition of the soil. The correct location of cesspools (septic tanks), water sources and their compliance with sanitary standards are checked. It is important to check the presence of an irrigation and drainage system. All buildings and stationary objects must be taken into account in the plan and technical passport of the house.

What documents do you need to check before buying a house?

Even a small mistake, inaccuracy in the title documents can become an obstacle to recognizing the transaction as legal. There are all sorts of pitfalls when buying a house in the form of various encumbrances and restrictions. Finally, a set of documents may contain false certificates and certificates. Vasya, this indicates the need for a thorough check.

Building permit

It confirms the compliance of the object with the town-planning plan and building codes. A document is issued upon obtaining the right to a land plot on which it is allowed to erect capital structures. The document is transferred to the assignee without reissuance.

Certificate of real estate and land

This document confirming the ownership of the house and land, the seller must provide the buyer. In its absence, the seller does not have the right to dispose of the property. If the sale is carried out by a person on behalf of the owner, then a notarized power of attorney is required.

Information about the number of registered citizens

When buying, you must ensure that all persons registered in the house are discharged. Otherwise, there will be a lot of problems with the rights of these citizens, especially minors.

Consent to sell from co-owner

With shared ownership of real estate, consent to the sale must be obtained from all equity holders.

How not to get scammed - useful tips and tricks

There is a high risk of fraud when buying a home. There may be obvious criminal elements who want to fraudulently embezzle money. More often come across unscrupulous sellers who seek to sell at a higher price in any way or get rid of problem real estate. As a result, the buyer may find himself in a difficult situation, losing money and not being able to register the purchase. To reduce the risks, you can use the following tips.

Compare the claimed land area with the actual

Falsifying a certificate with an overestimated area allows you to increase the price. The simplest method of verification is to take measurements. More accurate measurements allow you to make geodetic instruments.

Make sure the previous owners didn't do illegal redevelopment

You can verify their absence by comparing the layout with the registration certificate of the house. Studying the cadastral plan will help identify illegal structures.

Check design documents for a residential building

This check is important when buying a primary home from a developer. Project documentation should be checked already at the stage of preliminary negotiations, and then compared with the construction.

Please note that there are two sales contracts

When conducting a transaction, it is necessary to draw up 2 separate contracts - for a residential building and for a land plot. The correctness of the preparation of both documents is recommended to be checked by professionals. It should be noted that income tax is paid separately from these objects.

These tips will help you avoid scams. In addition, it is necessary to analyze the behavior of the seller. Scammers are often let down by trying to make a deal very quickly. An excessively low price, the requirement of a deposit and a partial prepayment should be alarming.

conclusions

Buying a home is a responsible undertaking. It must be carried out systematically, avoiding haste and rash actions. It is necessary to carefully check the documents, the technical condition of the object and evaluate the convenience of the location. Elementary precautions will help to avoid fraudulent schemes. With a properly executed transaction, state registration of property rights will not cause problems.

Will house prices go down

When remote work was possible during the pandemic, many moved from their apartments in Seattle and New York to homes in Austin,

Boise and Las Vegas. As a result of this influx of buyers, housing prices just soared.

In Las Vegas alone, the real estate boom has driven up prices by 49%. Read more here . And now the boom is over. The market across the country is cooling down. Home sales are down. Offers are getting smaller.

Developers are getting rid of projects, as they cannot sell already built-up areas and sell them at discounts. The fall in prices is especially noticeable in those markets that were overheated during the pandemic - that is, in the same Boise, Austin and Las Vegas. Take, for example, the situation in Austin. In July 2020, Austin became the top city for real estate investment according to Fortune. This was supposed to drive prices up, and it did. Austin has been flooded with new residents during the pandemic. Comedian Joe Rogan, venture capitalist Keith Rabois and Tesla CEO Elon Musk moved there. Rubik wrote about it here .

At the same time, house prices rose sharply. But the rise in mortgage rates in 2022 changed everything. Nearly 8,000 homes were selling in Austin in July. A year ago, half as many were put up for sale - 3,000 houses. Or, for example, Boise. Analysts predict that prices will soon fall, and the main reason for this is an overabundance of new housing. There are many developers in Boise who are already completing the construction of their properties.

Nearly two-thirds of renters across the country say they can't afford to buy a home, and saving on that down payment won't get any easier anytime soon, according to the WSJ : House prices are rising twice as fast as wages .

But did you know that you can buy a house without money?

Here's the gist, there are existing schemes; both public and private, who can put the desired keys in your pocket without requiring a down payment.

Let's take a look at some of the options you have when you want to buy a home with no down payment. We will also show you some low down payment loan alternatives and what you can do if you have a low credit score. Stay with me!

How can I buy a house without money?

You can only buy a house without money if you have a government loan. State-backed loans are guaranteed by the federal government. In other words, if you default on your mortgage, the government (not your lender) will pay the bill.

The government offers covered loans to people who need financial support to buy a home. These government loans are less risky for the borrower, and they can extend their usual loan recommendations to people with financial precarious situations, such as borrowers with no down payment.

To answer the question of how can I buy a house without money, we have compiled a list of how to buy a house without money. This list starts with two US government loan schemes that allow you to buy a home without a down payment: USDA loans and VA loans .

Each loan has a very specific set of criteria that you must meet in order to qualify for a zero-fee mortgage.

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#1 USDA Loans

USDA loan sponsored by the USDA. USDA loans support the US government's plan to encourage rural and suburban development. You can get a USDA loan with a zero rate. USDA loans also have lower fees than other types of loans.

To qualify for a loan, you and the proposed home must meet several criteria. First, your home must be in a rural or suburban area. Check the USDA Eligible Areas Map to see if your home qualifies.

On this map, any place outside the orange zone is considered rural. Secondly, your home cannot be a working farm, it must be single-family and you must live in this home as your primary residence.

In addition, you may be required to meet several financial requirements to qualify for the program. Your family's added gross income cannot exceed 115% of the median. the income of the county where your home is located.

Your debt-to-income ratio must not exceed 45% and you must have a FICO score of at least 640.

#2 VA Credits

This government loan is available to an active duty member of the military, a member of the National Guard, a veteran, or the spouse of a deceased veteran. It is sponsored by the Department of Veterans Affairs. With VA loans , you can buy a house with no money.

You can also pay a one-time VA financing fee of 2.15% of your loan amount in lieu of mortgage insurance.

To qualify for a VA loan, you must meet any of the following terms of service:

• You must complete 90 consecutive days of active duty during wartime.

• In peacetime, he worked for more than 181 days in a row.

• Served more than 6 years in the National Guard or Reserve.

• Be the spouse of a member of the armed forces who died in the line of duty or due to a service-related disability.

In addition to the service requirements, you must have a credit score of at least 640 to qualify for a VA loan.

#3 Combined mortgage 80/20

This option is only available to borrowers with excellent credit scores. In this type of loan, you get two loans instead of one.

One of the loans is 20 percent of the value of the home, while the other covers 80 percent of the value of the proposed home. Amazing, right?

Funds for the first loan serve as an advance payment for the second. Typically, a smaller loan is made at a lower interest rate, while a larger loan can be made at a higher rate or with an adjustable rate mortgage.

The advantage of an 80/20 loan is that it allows you to buy a house with no money, while avoiding having to pay PMI.

According to Barrett Barlow of The Nest, "Two loans are better than one only if the terms of each are favorable."

Therefore, it is important that you review the terms of both loans to make sure they are favorable before agreeing to any type of combined mortgage.

#4 Rent-to-own :

With a lease-to-own property, you will actually save enough money to make a substantial down payment. Meanwhile, you can afford to live in the house while you save up. To qualify, you must have a good credit score.

Before entering into such an agreement, you should: read the terms of the agreement, research the property, double check the fine print, and finally choose the right terms.

In this type of agreement, you must rent the house from the landlord and periodically pay an additional amount of $100 to $200 each month.

This additional money is held by the seller in an escrow account. After a certain amount of time, usually three to five years, you can claim a mortgage and buy a house. All money in your escrow account will go towards your initial deposit.

This style has its risks to be aware of. For example, if you cannot or cannot buy a house at the end of the lease period, you will have to forfeit a certain amount, if not all, of the funds you saved up for the down payment to the seller.

To get out of the trap of losing all funds, it's always best to talk to the bank about financing before signing paperwork with the seller. You can also apply for a mortgage when it's time to buy a house.

#5 Buying a house on a contract

This type of deal can be a good idea for those who want to be a homeowner but don't have the funds for a significant down payment or can't qualify for financing through a bank or mortgage company.

When you decide to buy a house on contract, the seller agrees to finance the purchase for you, not through a mortgage company.

By setting the price, you pay monthly to the landlord, who retains ownership of the property until you complete the payment.

Some real estate investors offer real estate for sale on a contract basis. In most cases, they will require a down payment, but some investors, such as John R. Lee, owner of Heartland Hideaways, LLC, sometimes allow buyers to contract with little or no fees.

The reason these sellers allow a contract to be made with little or no down payment is because they continue to hold the contract until full payments are made.

So if you don't make your monthly payments, they can evict you from your home and also keep your money.

This style comes with some risks: however, a perfectly executed contract will always be a win-win for both parties.

#6 Regular 97 (3% reduction)

Slot machine Regular 97 program is available in Fannie Mae and Freddie Mac. This is a 3 percent down payment program and for many homebuyers it is a less expensive option compared to an FHA loan.

As the name suggests, a regular 97 loan is a mortgage that gives you access to the cost of credit (LTV) ratio as high as 97%. This means that if you buy a home with an asking price of $100,000, you can borrow up to $97,000 and have only $3,000 in down payment.

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In addition, in a Regular 97 mortgage, donated funds are accepted as part of the 3 percent down payment if the donor is related by blood or family ties; either through legal guardianship or family partnership; or is a fiance/fiancee.

The Conventional 97 program does not require a specific minimum credit score other than the Standard Standard Credit Score. HOME loan. The program can also be used to refinance a mortgage loan.

#7 FHA loans (down 3.5%)

The Federal Housing Authority (FHA) loan is a government sponsored loan that you can access as little as 3.5%.

FHA loans have fewer requirements than USDA and VA loans. For these loans, you must plan to live on the property you are purchasing as your primary residence, purchase a home that meets livability standards, and move into it within 60 days of closing.

It is important to remember that you will need to take out mortgage insurance throughout the life of the loan if your down payment is less than 10%.

Some people get an FHA loan , wait until they have accumulated 20% equity in their property and then refinance a conventional loan as a temporary solution. This eliminates the requirement for lifetime mortgage insurance.

The FHA advertises a set of standards for the loans it will insure. Once a bank underwrites and finances a qualifying loan, the FHA agrees to insure that loan against losses.

Benefits of an FHA loan:

• Your down payment may consist entirely of "gift funds".

• The required credit score is 500.

• Mortgage insurance premiums are paid upfront at closing and then monthly.

Last words

Despite the high cost of homes in America, you can still afford to own a home with no down payment, simply by using any of the above loan or financing schemes. All you have to do is meet the requirements and then stick to the rules. To your health!

Written by: Tom Brooks