subject: Steps To Purchasing A New Home [print this page] My husband and I are close with a couple who has just made their first home purchase. When they decided on purchasing this home they sat down and discussed the area that they would feel comfortable living in, as well as shopping and raising a family. Once they decided on the best location to purchase their new home, they finally purchased a contemporary ranch style home that fit their needs, both financially and personally.
Of course, our friends have picked the best possible time to purchase a new home. It is a "buyer's market" with low prices and high availability. They are first time homeowners and are, therefore, eligible for the $8,000 subsidy, which is part of the government's stimulus package. Interest rates are the lowest they've been in many years and a variety of terms are available. Their timing for this purchase has been perfect.
Although they are currently in their new home, there was a lot of research and leg work completed before the final sale. To start with they needed to research various mortgage companies to find the cheapest rate that was available to them, at the terms they were looking for. Various lenders required different closing fees, and some were charging points. They finally find what they were looking for from a local bank, which offered them a good rate, low closing fees and no points.
The next step for our friends was to find a Homeowner's insurance policy as required by the bank. Of course, this is a policy that every homeowner should have even if there is no existing mortgage. It is the best way to protect what is the most important asset of many families. Again, comparison-shopping was necessary as there are many types of home insurance policies, and premiums can vary greatly by company. They checked with a number of companies and finally located one who provided the exact type of policy that they wanted for a reasonable premium.
When the above was taken care of, it was time to choose specific items for their new home, set up appointments for utility connections, telephone service, etc. They just went to closing on their new property and, as promised, we helped them move in last weekend. We really enjoyed seeing how happy they were with their new home. This is a very exciting time in a family's life and it was very nice to be a part of it.
by: Jackie Smith
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