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Real Estate in Contra Costa County and Alameda County

Basic Steps to Buying a Home

The largest expense most people will have is buying a home. This can be a very emotional and time-consuming experience. To a large extent you can control these if you understand what is involved in the buying process that includes obtaining financing. Here are some basic steps to help guide you:

1. Make the effort to be an informed buyer. The more you know about the home-buying process, the easier it will be to make decisions in a timely manner. There are many sources of information about real estate. These include newspaper articles, real estate books, and the Internet, such as the search engine Google. Use keywords and phrases related to real estate.

One of the most important sources of information is a real estate agent. Find and develop a relationship with an agent who can help answer your questions. Find one you can work with throughout the home-buying process. Ask how often and by what means the agent will communicate with you.

2.    Determine the costs you can afford for a home. There are three cost areas to keep in mind:
            a. The amount of your loan, its monthly payments, and other related monthly expenses.
            b. The amount of your down payment.
            c. Closing costs…loan fees, title company fees, and home insurance.
      Sources of information for these costs are loan officers, title companies, and insurance agencies. Real estate agents can help you with contacts to people knowledgeable of each type of cost.

3. Talk with two or three loan officers. They will explain the process of obtaining a loan and the advantages and disadvantages of the various loans available. All banks have loan officers and home loan programs. There also are many mortgage broker companies that specialize in home loans and refinancing. They operate independent of banks but have access to bank loans and many other sources of loans. The Internet is a good source to check for loans. An Internet loan company can provide you with quotes for all types of loans. But, getting detail explanations and understanding how these loans work can be more difficult, even by phone. The best source for understanding loans is with face-to-face discussions with loan officers. (continue on Page 2) (Home Page)
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