Buying a home requires a lot of time and effort into finding the perfect one that fits your family’s needs. With these 10 steps, it will make it more manageable and help your decisions become a reality.
Start your Research Early- Start researching new homes in the area you would like to live as soon as you can. Make a note of the homes you would like to see and determine how long they have been on the market. Also, note any change in asking price.
Determine How Much House You can Afford- Generally lenders recommend that your home costs no more than three to five times your annual income if you plan to put down 20% and have a moderate amount of debt.
Get Prequalified and Preapproved for Credit for Your Mortgage- Before you can start looking at homes, you need to determine how much you can actually afford and what you feel comfortable spending. To get qualified you just need to provide some financial information to your mortgage banker such as your income and the amount of savings and investments you have. Once you have provided this information to your lender, they will inform you with how much they can lend you. This will tell you the price range of homes you should be looking at. Later you can get preapproved for credit which includes more financial documents.
Find the Right Real Estate Agent- Real estate agents provide you with helpful information on homes and neighborhoods that isn’t easily accessible to the public. Our knowledge of the home buying process, negotiating skills and familiarity with the area you want to live in can be extremely valuable.
Shop for Your Home and Make an Offer- Start by touring homes in your price range, take notes at each house you tour to compare later. It will be hard to remember each house in detail if you do not take notes or pictures. When you are touring homes, make sure you check out little details such as: testing the plumbing, trying the electrical system, open/close the window. Evaluate the neighborhood and make a note of such things: are the homes well maintained, how much traffic is in the area, is there enough street parking for your gusts, and is it conveniently located near your places of interest. It’s also important to take your time and find the right home. Once you find the right home, work with your agent to negotiate a fair offer based on the value of comparable homes in the neighborhood. When the price is agreed upon the home will go into escrow which is the period of time it takes to complete all of the remaining steps.
Get a Home Inspection- Home purchase offers are contingent on a home inspection of the property to check for signs of structural damage or things that need to be fixed. Your real estate agent will help you arrange to have one conducted within a few days of your offer being accepted. Once the inspection is completed the seller and the buyer will receive a report on the findings. You then decide if you want to ask the seller to fix anything on the property before closing the sale. Before the sale closes, you will have a walk-through of the house which gives you the chance to confirm that all agreed-upon repairs have been made.
Work with a Mortgage Banker to Select Your Loan- Lenders have a wide range of competitively priced loan programs and a reputation for exceptional customer service. You will have many questions when you are purchasing a home, and have an experience, responsive mortgage bankers assist you can make it much easier. Every buyer has their own priorities when choosing a mortgage. Some are interested in the monthly payments to be as low as possible while others are interested in making sure their monthly payments never increase. Your lender will help you choose which is best for you.
Have the Home Appraised- Lenders will arrange for an appraiser to provide an independent estimate of the value of the house you are buying. The appraiser is a member of a third party company and is not directly associated with the lender. The appraisal will let all parties know that you are paying a fair price for the home.
Coordinate the Paperwork- There is a lot of paperwork involved in buying a house. Your lender will arrange for a title company to handle all of the paperwork and make sure that the seller is the rightful owner of the house you are buying
Close the Sale-At closing, you will sign all of the paperwork required to complete the purchase including all of your loan documents. It typically takes a couple of days for your loan to be funded after the paperwork is returned to the lender. Once the check is delivered to the seller you are ready to move in!
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