Step By Step Home Buying
Step By Step Homebuying
Home purchases can be stressful and complicated, but if you simply follow the steps, you will find that you will soon be moving into your new home!!
1. Find yourself a good, experienced buyers agent.
People often think this should be one of their last steps. Especially if they are "unsure" or "just looking". It's often thought that people will be hassled and its better just to search the internet or in the papers for homes. A good, experienced agent will never hassle you, but let you create the pace of the process. You need to have someone in your corner that knows all the ins and outs of real estate, but has your best interest at heart. As for searching through outdated papers or websites that often have unreliable information, you do yourself a disservice and may, without knowing it, lose out on your dream home.
** Note: Buyer's agency contracts in most states can extend a year, but it is in your best interest to only sign one for a maximum of 6 months. Also, do hesitate to ask questions. Remember they are your representative.
2. Get Pre-approved for a Mortgage
More often than not, the price range you think you'll be in, is not wholly accurate. You may think you can truly go up to a certain price, but then you meet with a mortgage consultant and find that price range translates into a payment you are not comfortable with. Or vice versa, you limit the home sale price to a certain number you think will put you in a certain payment bracket and find you could really have bought that dream home you'd liked. Why? Because interest rates, and mortgage programs change daily. And at the end of the day, it is not the price tag on the house that matters, but what you are paying on a monthly basis and what monies you needed at settlement. With no cost, no obligation mortgage companies out there, you'd be a fool not to find out what mortgage would work best for you and how much you qualify for.
3. Shop for a home.
Make a wish list of what things you'd like to see in your next home and prioritize them. Determine the areas or school districts you would like to live in. Communicate these items to your buyer's agent and discuss your options for those areas and price ranges. Be open. Often people make a snap judgment of a 2x2 picture they initially see, but it does not hurt to delve deeper or at time to take a look at a home before dismissing it completely.
**Note: Often you will find you make be looking a quite a few homes in one appointment. It doesn't hurt to bring a notepad to help remind yourself of some of the things you liked about a given property... or even things you didn't like.
4. Make an offer on a home.
Lots of variables should be taken into account when making an offer. How long has the property been on the market? Are there other offers? When did the seller buy the home and how much did they pay? What are comparable properties in the neighborhood selling for? Now is the time to utilize the expertise of your buyer's agent. It may take some negotiation until both buyer and seller agree on the terms of the sale.
5. Loan Application and Title Company
Once your offer has been accepted, it is imperative you get the contracts to your mortgage consultant and be sure that they have all the infomation and documentation they need to submit your file to underwriting. With all the tightened restictions, any delay on your part could cause delay with settlement, which potentially could forfeit your deposit and lose you the home. This is also the point in which your buyer's agent will submit all the necessary paperwork to the title company to ensure the property is transeferred to you without any hidden liens or encumbrances.
6. Home Inspection.
Home inspections will not only help you avoid major, costly issues in your future home, but is also a great learning experience about your home. Your agent can help you find a licensed inspector with a good amount of time in the business. It's important, that if possible, you as the buyer are there at the inspection. It allows you to hear thoughts directly from the inspector, ask questions and to become educated on the property.
7. Shop for homeowners insurance.
Not only is this important to help you protect your investment, but lenders always require that you carry homeowners insurance on the property prior to settlement.
8. Conduct a Pre-settlement Walkthrough of the Property.
Either the day of or the day before settlement, your agent is going to take you though the home once more before signing paperwork to make sure that everything is the way it should be in the home.
9. Sign Settlement Papers.
Last is settlement. Driver's License or I.D.? Check. Certified check for closing costs? Check. Signed settlement documents for the home? Check. Now the home is yours! You'll get keys and can move on in if you'd like. Enjoy!
