Tuesday, November 10, 2015 / by Yvette Blehm
6 Steps To Buying A Home
While you might be eager to jump right in to the home buying process and find that perfect dream space, most people don’t realize that we have to lay some building blocks first, and understand the process of purchasing property. Unlike most products out there today, the purchasing process for property can be daunting. While this guide can’t touch on every aspect of your home purchase (let’s be honest here, each transaction is unique and different), these six general tips will help you get started in the right direction!
1. Lay The Essential Groundwork
Before you get to the nit and grit of searching for homes, it is important to lay the foundation. You will waste a lot of time if you do not take the necessary steps to get prepared for your new home. Building credit history, getting pre-approved for a mortgage, saving up for a down payment (typically 3-20% of a property’s value), and considering closing costs are essential to success in home ownership.
2. Hire A Professional REALTOR®
It goes without saying that in the same way you wouldn’t look for a bargain basement heart surgeon, you shouldn’t look for a bargain basement REALTOR®. These professionals will help represent you on the biggest purchase of your life, and work on your behalf to get you the best value possible. Do some shopping for REALTORS® and find one that you feel comfortable with!
3. The Search Begins!
Now the fun begins! Your buyer’s agent can get you into any listed home that you want to see! Take into account the area you will live in, your potential home’s resale value, school districts, utility costs and monthly mortage payment. Make sure to let your agent know exactly the style you are looking for, as they can help you with your search. This is an exciting step in the process, so have fun!
4. Financing & Mortgages
Make sure at this point that you contact your lender to ensure that you understand the terms of your mortgage loan. Your lender will ask for all of the necessary financial documents and help guide you throughout the financing process. Understanding the terms of your mortgage and taking into account property taxes, and homeowner association fees is essential in planning for your house payments.
5. Making A Competitive Offer
Making an offer is a multi-step process. First, have your agent show you competitive sales in the area. This will help you structure a competitive offer. After your offer is accepted, a licensed inspector can evaluate the home for you. The title company will ensure that there are no liens on the property. And finally, your lender will submit your loan application and documents for final approval.
6. Closing, And Your New Home
All that’s left is to close on your new home! Once you have closed, be sure to keep all of the closing documents. It is also wise to protect your home with insurance such as homeowner’s and flood insurance. Make any changes to the home you want (painting, flooring, light fixtures), and set a date to move in! Also, be sure to recommend your REALTOR® to friends if they did a greate job!