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I’m a first time home buyer. We will be finding the home ourselves and not user a realtor to help us find the home. What professionals will be involved in the home buying process? Do I save money buying from a “for sale by owner”? Who else will I be using the services of? Also, what should I look out for?

3 Thoughts on I’m a first time home buyer. Who will be involved in buying a home? Cost?
  1. Pure Genius
    July 7, 2011 at 10:48 am

    my first suggestion would be to get a realtor, i know you think it will be cheaper but all the questions you have asked is because you do not know what you are doing… (its like trying to fix your car yourself but you are not a mechanic) you could end up spending more money because of things you do not know…if you use a realtor they do all the leg work and can explain everything to you step by step..buying a home is a big decision a realtor can help make sure you get everything you want…. if you still insist on doing it yourself be very very careful and make sure you understand everything before you sign anything…i found a good site with good real estate advice so it should help.. good luck

  2. JAW
    July 7, 2011 at 11:27 am

    You may save money buying from a ‘for sale by owner’. Since they will be saving money by not having to pay the realtor commission fees, you might have more room to negotiate the selling price. Since no realtor would be involved, the seller and you will draw up a sales contract. It does not have to be anything exstensive but you would want to make it as thorough as possible to cover both of your interests. For instance, all light fixtures will stay, the pool will stay, etc. I was a mortgage loan processor and we saw sales contracts that were basically two lines. As long as they show buyer and seller names, sales price, and are signed that is acceptable. You could do this on the computer or even hand write it. It will be your responsiblity to find a lender. You will want to shop around for the best interest rate they can offer you and be weary of the bait and switch, usually these are brokers. They will tell you you can get this rate and then right before closing, they say well we are going to have to raise your rate. I would go to a bank, like BofA or Wachovia. If you go thru a broker, they find the lender for you, but you usually end up paying them for doing so. This is how they make their money. Once you have been approved for the mortgage, they will tell you that they will need to do an appraisal, which they will order for you, you will need to send the bank whatever paperwork they ask for. Paystubs, bank statements, etc. You and the seller will need to agree on who will do the real estate closing. This is who will draw up the closing documents. If you want your own attorney to review the other closing agent’s closing documents, you can do that as well, but it will cost you more money. There really is no need for you to have your own attorney unless the state specifies you to do so. You sign the closing documents and you’re all done. Your lender or bank you choose to do your loan will be able to explain the process as well. Good luck.

    If you decide to use a realtor, they have nothing to do with homes that are listed for sale by owner. The transaction is negotiated only between you and the seller, no realtor. If you find one you are interested in that is for sale by a realty company, then you can call the agent that listed the house. You still are not responsible for their fee b/c the seller pays this.

  3. Terry S
    July 7, 2011 at 11:43 am

    Check your state for “First Time Homebuyer Programs”

    Arizona just received 400 million dollars to help first time homebuyers with a 5% GRANT towards down payment and closing costs.

    Here are the details for the Arizona program.

    Terry S.

    P.S. Big mistake not hiring an agent to help you find your dream home.

    P.S.S. The person representing themselves in a court of law has a fool for a client.

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