How
to Buy a Home
It
may matter more through whom
you buy your home than the home
you finally select.
The
Hardie Group will help you
- Determine
how much you want to spend.
- Establish
a criteria for selecting
homes.
- Obtain information
about houses and neighborhoods
to help you make decisions.
- Prepare for
mortgage qualification.
- Close on
the house of your dreams.
How
much house can you afford?
Most people have a general idea
how much they feel comfortable
spending. It's equally important
how much the lender calculates
you can afford.
- Evaluate
your financial situation
as the lenders do. Typically,
your total monthly housing
costs (PITI) should not
exceed 28 percent of your
gross monthly income. Or,
housing costs plus any outstanding
monthly long-term debt should
not exceed 36 percent of
gross monthly income.
- Determine
how much your financial
institution is willing to
lend you.
- How much
can you afford in monthly
payments. Lenders factor
in sales price and downpayment,
but place more importance
on how much you can handle
monthly.
- Will you
need to find your own financing?
Ask your Hardie Group sales
associate for recommendations.
What
type of house do you want?
Next you'll want to determine
your needs, tastes and preferences
for your new home.
Choosing
a neighborhood
Bricks and boards may determine
the cost of a home, but a neighborhood
determines it's value.
Picking
the right home
Your new house has to feel right…
but emotions aside, it has to
work right, too.
Outside
the home
- Do trees
and shrubs appear healthy?
Are large trees at least
30 feet from the house?
- Is the lot
slopped for proper drainage?
Are there low spots near
the house?
- Do electrical
outlets have ground fault
current interrupters to
prevent shock?
- Is the outdoor
lighting adequate?
- Are there
outdoor faucets or sprinkler
systems?
- Are sidewalks
and driveways in good condition?
Will water drain off them?
- Is the house's
exterior surface in good
repair? Are there cracks
where materials meet at
two walls or at windows
and walls?
- Do windows,
doors and chimneys sit plumb
and square?
- Is the roof
free from sags and dips?
Are shingles in good condition?
- Are gutters
in good shape, with tight
seams and do downspouts
point away form the house?
- Do foundation
walls have cracks larger
than ¼-inch wide?
The
Floor Plan
- Is the house
divided into three distinct
zones for working, living
and sleeping?
- Does traffic
through the kitchen flow
outside the work area?
- Are the stove,
sink and refrigerator just
steps apart in an efficient
triangular configuration?
- Do open appliance
doors block doorways, cabinets
or each other?
- Do bedrooms
have two uninterrupted wall
surfaces for easy furniture
arrangement?
- Are baths
accessible without having
to cross a bedroom or other
living space?
- Does the
main entry lead guests directly
to the living room or make
them figure out which way
to go?
Basement
to attic
- Do basement
walls have large cracks
that indicate a shifting
foundation? Mildew stains
that indicate dampness/flooding?
Is an unheated basement
ceiling insulated?
- Are exposed
beams and joists in good
condition?
- Is the attic
well insulated? Is there
any evidence of water damage
from a leaky roof?
- Are floors
springy or are they even
and sturdy?
- Are the walls
(particularly at door frames
and windows) free from large
cracks?
- Do all doors
and windows work smoothly?
- Are bathroom
fixtures in good working
condition? Does the faucet's
water flow remain steady
when the toilets are flushed?
Does the water drain well?
- Are there
enough well placed electrical
outlets in the rooms? Does
the service to the house
match it's current electrical
needs?
- Is the capacity
and recovery time of the
water heater adequate for
your family? Does the water
heater show signs of rust?
- Do the kitchen
appliances appear to be
in good condition? Do they
come with the sale? Will
your appliances fit in the
present spaces if need be?
- Do the furnace
and/or air conditioning
unit(s) appear well-serviced?
Is the blower quiet?
Making
your purchase
When you find the perfect house,
your sales associate will take
you through a step-by step process
to make the purchase. Now it's
your turn to make some important
decisions.
- Decide how
much you should offer .
- Know what
happens to your earnest
money.
- Require the
seller to do a title search
to prove the title is clear.
- Decide what
type of deed you want.
- Decide what
conditions you want to place
on buying the house.
- Spell out
what you're buying in the
contract.
- Determine
what special provisions
should be included.
- Decide who
is your settlement agent,
the closing date and the
possession date.
Home
Inspection
Buyers
have the right to have the
home inspected as part of
the purchase agreement.
Finding
Financing
Once you learn the seller has
accepted your offer, you have
one key job: line up financing.
- Ask your
Hardie Group sales associate
to help you to prepare.
You may want to take him
or her to your meetings
with the lender.
What
happens at closing
- Discuss and
resolve any issues or problems
before closing.
- Sign the
note promising to repay
the mortgage, with the house
as security.
- Sign the
other papers fulfilling
governmental regulations
and transaction information.
- Look carefully
over the numbers in the
closing or settlement statement…
the last document to appear…
before signing.
