Buyer Center
Buyer Center Knowledge
Ready To Take the Home Ownership Leap?
Coldwell Banker Offers 10 Tips to Making the American Dream Come True
Buying a first home is one of the most important decisions a person can make, but it can be a complex process. Coldwell Banker Real Estate Corporation offers tips for first-time homebuyers with a checklist of the 10 essential steps to help make the process smooth and successful.
Step #1 - Ask Your Lender About Available Mortgage Programs: An experienced mortgage company should be able to work with you one-on-one to determine exactly which mortgage programs will meet your individual needs and what you can qualify for based on your personal information. Applicants with higher credit ratings and/or higher levels of financial reserves generally receive more competitive mortgage rates. But with hundreds of available mortgage programs, there is usually one to meet the needs of almost any homebuyer. For those with excellent credit, there is even a way to get a mortgage with 0% down. (For more information on this and other mortgage programs, check out www.coldwellbankermortgage.com.)
Step #2 - Research the Terms of the Mortgage: Different mortgage lenders have varying price structures that can affect the amount that you pay for your home. An annual percentage rate (APR) includes the actual interest rate on the loan, as well as certain fees and costs associated with the loan. Because a customer may be paying points and other closing costs, the APR disclosed may appear to be higher than the actual interest rate quoted for the loan. Not all lenders calculate APR identically; however, it does give customers a relatively fair method of comparing price on their potential loans. Coldwell Banker Mortgage offers the industry's strongest service guarantees: among them is the promise to beat any lender's price or pay the homebuyer $500.*
Step #3 - Get a Pre-Qualified Loan Commitment: Even before the house hunting begins, homebuyers need to determine how much they can afford. Mortgage companies or other lending institutions provide pre-qualified loan commitments. Sellers often don't take an offer seriously unless the prospective first-time buyer has some assurance of creditworthiness from a mortgage company. Coldwell Banker Mortgage goes one step further, offering qualified consumers pre-approvals, which carry more weight than a pre-qualification. A pre-approval with Coldwell Banker Mortgage means more because a full credit report is ordered on the customer so that a true loan decision can be made the same day a customer applies. Shopping for a home with a pre-approved mortgage enables a customer to negotiate as a cash buyer and submit an offer on a home with confidence that the mortgage will be issued and the sale will be completed.
Step #4 - Do Your "Home-work": Be sure to go online to sites such as coldwellbanker.com to check for listings, neighborhood information, current mortgage information and home ownership services. The right amount of research will help you to better understand the marketplace and homes available in your price range when you're ready to work with a real estate professional.
Step #5 - Make a Checklist: To help make the home buying process a little easier, homebuyers should create a checklist of the important features they want in a home. Location and the number of bedrooms and bathrooms are usually important. Other important questions to answer: What will the commute to work be like? Are there shopping centers, parks, and schools located near the home?
Step #6 - Find a Buyer's Broker: A buyer's broker or agent represents the buyer's interests and helps identify homes that are for sale and in the right price range. The broker also can help with such tasks as writing contracts, negotiating the asking price, and closing the purchase.
Step #7 - Make an Offer: Once you find the right house, make an offer. Make sure that your offer is contingent on two items: 1) You're able to obtain adequate financing (if you haven't done so already), and 2) you can pull out if the property doesn't pass the home inspection, and the owner can't come to terms about how to fix the problem. Be prepared for counter-offers from other buyers and some negotiation with the seller. Make an earnest money deposit, which is a check that you'll give your agent to indicate that you're serious about buying the house. The check will apply toward the sales price if the deal goes through; if not, you get it back. You should also set a time limit with your agent that the offer you've made is good for three days. If an offer is accepted, it goes to the contract phase.
Step #8 - Hire A Home Inspector: Making an offer contingent on an inspection by a registered home inspector can save thousands of dollars by avoiding unseen problems. Inspectors will check the house for any structural damage. In the contract with the seller, it should state any necessary repairs that must be made before closing on the house. Prior to closing, walk through the house and check that such repairs have been completed.
Step #9 - Buy Homeowners Insurance: Lenders require homeowners insurance to protect the new homebuyer's interests as well as their own. There are many providers so shop around for the best rates.
Step #10 - The Closing: This is where the seller and buyer sign settlement-closing papers to transfer the ownership of the home and all transactions are finalized. Congratulations, you achieved the American dream and you are now a homeowner!
About Coldwell Banker:
Since 1906, the Coldwell Banker organization has been the premier provider of full-service real estate. In 2002, Franchise Times magazine's prestigious Top 200 issue ranked the organization No. 1 in real estate and 10th overall. The Coldwell Banker system has more than 3,500 residential and commercial real estate offices with nearly 106,000 Sales Associates globally. Each office is independently owned and operated except for offices owned and operated by NRT Incorporated. The Coldwell Banker system is a leader in the industry in residential real estate, and in niche markets such as resort, new homes and luxury properties through its Coldwell Banker Previews International division. It is a pioneer in consumer services with its Coldwell Banker Concierge program and award-winning Web site, www.coldwellbanker.com. Coldwell Banker Mortgage is one of the largest telephone/Web-based lenders in the country and the Coldwell Banker Commercial system is one of the largest commercial franchise operations with over 400 affiliates offering clients comprehensive buying, selling, leasing, acquisition, disposition and management services. Coldwell Banker Real Estate Corporation is a subsidiary of Cendant Corporation (NYSE: CD).
About Coldwell Banker Mortgage:
3000 Leadenhall Road, Mt. Laurel, NJ 08054. Please note: Not authorized to lend in Montana. Arizona Residential Mortgage Licensee #BK0903210, Licensed by the Department of Corporations under the California Residential Mortgage Lending Act, Georgia Residential Mortgage Licensee, Illinois Residential Mortgage Licensee; Massachusetts Licensed Lender #ML1774; Minnesota - This is not an offer to enter an interest rate lock-in agreement, New Hampshire First Mortgage Banker #5625-MB & Second Mortgage Home Lender #5626-MHL, Licensed by the N.J. Department of Banking and Insurance; Licensed Mortgage Banker - NYS Banking Department, Licensed First Mortgage Banker and Secondary Mortgage Lender by Pennsylvania Department of Banking, Rhode Island Licensed Lender. In Massachusetts, Ohio, and Virginia, mortgage services provided by Coldwell Banker Mortgage Corporation. Coldwell Banker is a registered trademark licensed to Coldwell Banker Real Estate Corporation.
*A customer must provide a complete, system generated Good Faith Estimate, listing a specific lender's name, that is dated the same day as the rate quoted by us. If such Good Faith Estimate indicates an equivalent or lower interest rate and closing costs package, for the same loan program that is offered by us and we have verified the accuracy of the rate and fees listed then we will have the option of beating that lender's total loan costs by $100 or paying the customer $500 ($750 for properties located in California) when they close with that lender and provide us with a copy of the signed Note and Final HUD-1 Settlement Statement.
If you can't find what you're looking for here, please or call 800-261-SOLD (7653) with any questions you might have.