How to… buy a home with Layne Harrison

I have been renting for six years now, spending about $600 a month. Six years equates to 72 months, which means I have spent $43,200 on rent. I am nowhere near ready to buy a home, maybe in another six years; so that would mean I’d be putting about $90,000 into something that’s not even mine. I know that’s not enough to buy a home in “America’s finest city,” but it would be a down payment plus a couple of mortgage payments. To buy a home you don’t just take your money to the home store and the home is yours. So, say I had all that money right now, or just half (if I had been sleeping on friends’ couches the whole six years and saving that $600 every month) and I wanted to live somewhere that was…mine. How the hell would I get started? Let’s let real estate agent and professional surfer, Layne Harrison, tell us about the process.
    “Buying a home is probably the largest investment most people will ever make. You absolutely need to educate yourself a little bit before you buy a home. There are many things to consider like: what area do you want to live in, what area can you afford to live in, do you want a condo or a house, what is the condition of the house, what type of loan program to choose, down payment amounts, closing costs, etc.. A home buying guide will help educate you about the whole buying process. Most realtors offer their clients this guide. Also, your realtor and loan officer should explain the buying process to you before you make an offer. You can also get a home buying guide online. Here is a very general outline of the home buying process.

1.Find a realtor- Your realtor should be someone you really trust. Make sure they’ve sold a number of homes in the past. Your realtor will help you look at homes, negotiate your offer, estimate your closing costs, set up all inspections, etc. Ask your family and friends for a referral.
2.Get pre-approved by a lender before you start looking at homes- Most of my clients do this reverse order. They look at homes before they have even spoken to a lender to see what they can afford. Choose a loan program that fits your needs. There are many types of loan programs such as, 30-year fixed, 15-year fixed, Adjustable Rate Mortgages (ARM), interest only loans, etc. Forget this step for all you cash buyers.
3.Find a home.
4.Make an offer.
5.Complete all inspections of the home.
6.Sign all loan documents.
7.Close escrow and move in to your new home.

“One last thing, this is a very emotional process for most buyers. You could quite possibly go temporarily insane. Trust me, everything will work out fine. If you have any questions at all, email me at layne@layneharrison.com.”