Challenges of Buying a House

Any number of challenges can crop up as you move through these various stages of the homebuying process. The title company might uncover liens on the home that need to be cleared up, you and the owner may not come to terms on which repairs she will rectify prior to closing, or the home inspector may uncover an expensive structural defect like toxic mold. The key is to surround yourself with competent professionals (real estate agents, title companies, appraisal firms, lenders, and even attorneys—which are required in some states) and books like this to help you navigate the process.

Steps of Buying a House

As for the homebuying process itself, it generally goes something like this:
❑ Consult with a lender or real estate professional about how much home you can afford (obtain a ‘‘prequalification’’ estimate).
❑ Select a region and/or community where you’d like to live.
❑ Decide what type of home you’d like to purchase (single family? town home? condominium? co-op?).
❑ Either work on your own (using the newspaper, Internet, and ‘‘for sale’’ yard signs) or enlist the help of a buyer’s real estate agent to see what on the market fits your criteria.
❑ Find your home and make an offer.
❑ Negotiate the price and fine points, such as repairs that need to be made by the current owner.
❑ Determine a closing date and set the wheels in motion (start packing!).
❑ Finalize your financing while home inspectors, appraisers, and other required inspections or reports are completed.
❑ On closing day, take possession of your new home and start moving your stuff in!

How difficult are the financial aspects of purchasing a home?

The factors that mortgage lenders look at when doling out money are far different from the criteria landlords use to rent out a property. Let’s compare: When you rent an apartment, a decent credit rating and steady income source usually result in a lease signing and the forking over of first and last month’s rent. Within a few days, you’re in your new apartment. Home buying is not as simple. The process itself is time-consuming because there’s more at stake and because mortgages simply aren’t as easy to obtain as leases.
Still, the overall consensus is that the homebuying process is easier than it was, say, ten years ago. The fundamentals are the same: You need some cash reserve for a down payment and/or closing costs; you need the cleanest credit history you can provide (a variable that factors heavily into the interest rate that a lender will offer you); and you need a source of steady income that proves your ability to pay your monthly mortgage payment.
Everyone from mortgage lenders to real estate agents has created programs for first-time buyers like yourself, who need a bit more hand-holding during the purchase process. Still, the biggest challenge that most first-time home buyers face is the same as it was ten years ago: scraping up the money for the down payment. Most lenders offer an array of lending options. Wells Fargo of San Francisco, for example, is the nation’s top originator of residential mortgages and offers programs that include closing cost saver, down-payment assistance services, as well as 3 percent and 5 percent downpayment programs. Visit the lender online at www.wellsfargo.com/mort gage, to read more about the homebuying process, mortgage options, and getting preapproved for a mortgage. That’s the financing aspect of the purchase.