Steps to Buying A Home

Steps to Buying A Home

Buying your first home is can be a scary process.  Learn about the steps you need to take on your way to home ownership.

These are a few of the basic steps to purchasing your new home.  As your Realtor, I will work to make these steps as easy as possible with less stress.  The usual process of buying your home may include:

1.        Are you really ready:

This is the first step to owning your home and that begins with “Are you ready for this step in your life.”  Your current financial situation will be a major factor in this decision.  Understanding the cost of home buying and homeownership are vital steps in determining whether you are ready to take this plunge.  Factors that determine your financial readiness include your current income, savings, fixed expenses and debts.

2.         Check out mortgage options:

With lender requirements changing, you will need to make sure your credit and finances are in good condition.  If possible, to pay off or pay down outstanding balances on credit cards, car loans, etc. This will help improve your income to debt ratio, which will improve your credit score.  A credit score that is close to 700 will help you get the best rates.

3.        Get a pre-approval letter:

Getting pre-approved for a mortgage means that a loan officer has reviewed your finances and credit report and believes you qualify for a specific loan amount for one or more mortgage programs.  The lender will then offer you a pre-approval letter, which will be a testament to your buying power when you are ready to make an offer on a home.

4.        Determine your budget:

Your pre-approval letter will tell you how much the bank is willing to lend you based on your credit, income and other factors.  Your lender will also work with you to determine how much your house payments will be so you can make your decisions on the amount you will pay.  You will also need to look into home insurance and taxes that you may include in your mortgage payments.

5.    Select a property:

With the Multiple Listing Service (MLS), homes are bought and sold daily.  As your real estate agent, I will search homes and locate options that meet your criteria.  I will arrange showings and make the process as low stress as possible.  We will narrow the search and finalize your choice.

6.    Make an offer:

After deciding your top pick based on the property and your budget, we will make an offer on the property.  The price is not the only factor within an offer.   Closing cost will also be considered as part of the negotiation.

7.   Inspect the home:

After your offer is accepted, you will find an inspector to do a home inspection on the property.  This is when you will want to get a professional opinon on the condition of the home and determine if any red flags are present.

8.   Inspection Items:

If items are noted by the professional inspector that you feel need to be addressed, you will ask the homeowner to make some repairs.  Once those repairs are noted, they will be put in writing in what is called an Inspection, Repair and Survey Addendum.  At this time the homeowner will decide if they agree to make your list of repairs.  If not, we will negotiate to determine upon which items the homeowner and you (the home buyer) will agree.

9.   The Final Walk-through:

This is where you will go back through the home you are purchasing to determine if the repairs are done to your satisfaction and that the home is still in the same condition it was when you went through it with the home inspector.

10.  Closing the transaction:

The purchase of a home can be one of the most valuable assets you will every own.  Choosing a closing company will be one of your last big decisions before you finish this transaction.  Your closing company will offer you the option to purchase Title Insurance to protect your investment.  This insurance is a one-time premium that gives you peace of mind for future claims against your rightful ownership of the property for the entire time you own it.  If you are securing financing for your property, your lender will require you to purchase this protection. The Title Policy will ensure that you own the property free of any liens or encumbrances.

·         On the day of closing, please bring to the closing company your driver’s license and a secondary form of identification.

·         The amount of funds required to settle your transaction must be certified or via wired and the final amount will be provided to you by your lender.

The Closing Agent will have all the required documentation to ensure that your loan is properly executed per your lender’s instructions and to properly convey ownership from the seller to you.  The documents will be explained in detail and you will receive a copy of all the documents you sign.

So, rest assured that you are working with professionals and enjoy the process to owning your own home.