STEPS TO BUYING A HOME
Buying a home can require a lot of your time and patience. There are ways to make the process easier and to help you make the best decision.
It’s important to begin researching as soon as possible. You find listings online, in newspapers and in magazines. Take notes of particular things you are interested in and specific homes.
2. What can you afford
In some cases a down payment may be required for your new home purchase. Lenders will look at your income and debt to income ratio to determine eligibility. You can find various calculators online that will simulate home purchase price, down payment, mortgage, etc to aid in this process.
3. Find a realtor
You want to find someone that is knowledgeable of the business, familiar with the area you are looking for, and one with great negotiation skills. Realtors are paid on commission from the sale price, so in most cases you dont have to provide funds upfront.
4. Get pre qualified/pre approved
Your realtor should be able to connect you with a preferred lender or one that fits your need. If not be sure to do your research on the different lenders that are available to you and what services they provide. During this process you will provide financial information that will be reviewed to determine how much you can borrow towards a new home.
5. Find a home and make an offer
Once you have a pre approval, it’s time to start working with your realtor to find your new home. You want to ensure that you look at homes within your price range. Take pictures and videos so you can remember all that you see. Be sure to check all the details. (plumbing, electrical, traffic, parking, etc) This will be your forever home so you want to ensure everything is just right. It’s important to not rush the process, take as much time as you need with your realtor to find the best option. When you are ready you can make an offer.
6. Home Inspection
In most cases the offers are contingent on the findings of the home inspection. The inspection will check the property for any structural damage or other things that need to be fixed. A copy of the inspection report will be provided to both you and the seller. If items need to be fixed, you can negotiate with the seller to fix them before closing if you choose to.
7. Review loan options
Your mortgage company will go over the options for your loan in reference to monthly payments, etc. (sometimes this is covered during the pre approval). This is the time to thoroughly review all options and ask questions.
8. Home Appraisal
Lenders generally arrange for the home to be appraised by a third party. This lets all involved know the home is being purchased at a fair price.
9. Paperwork/ Closing
This process involves a lot of paperwork. You will meet with your lender and a title company to review and sign all required paperwork to proceed with the purchase. It can take several days for your loan to be funded, but once this clears you are all set to move into your new home!
Do you have questions about the home buying process? Are you ready to purchase your new home?
We are here to make your home buying dreams come true.
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