Buying a Home? Make a list and check it twice.
When you decide to buy a home, it’s time to start thinking about the next step. Buyers need a checklist to help them through the home buying process and make it as easy as possible.
Learn to “Talk the Talk”
Before starting your search, learn the most commonly used real estate words and phrases. Knowing the terminology is useful when talking with your REALTOR® and it will give you an idea of what is involved in the home buying process.
Get a Free Credit Report
You can request a free copy of your credit report every 12 months from the three major credit reporting agencies (Equifax, TransUnion and Experian). It is important to do this before you begin looking at homes so you have plenty of time to review the reports for inaccurate information and dispute any erroneous information. By doing this before you meet with a lender, your information will be current and correct.
Get Pre-qualified
There is a difference between being “Pre-qualified” and “Pre-Approved”. While pre-qualification tells you the price range you can possibly afford, it does not guarantee you will get the loan. Being pre-qualified is important because you will know what you can afford so you can search only homes in your price range. By knowing what you can afford, you will save time and not be disappointed by looking at homes that do not fit your budget.
Work With A REALTOR®
A REALTOR® can locate homes that meet your specific requirements at a price you can afford and arrange to show them to you. Be prepared to take notes and after each showing, provide your REALTOR® with good feedback as to what you liked or disliked about each house.
Make an Offer
Once you find the perfect home, your REALTOR® can guide you in deciding how much to offer. A REALTOR® can prepare you for what to expect and handle the negotiations if the seller makes a counteroffer. If you are not pre-approved, your offer should be contingent upon obtaining financing at an acceptable rate and terms within a set period of time.
Obtain a Loan
When you and the seller agree on the purchase price, an earnest money deposit is required. The earnest money will be held in escrow while you obtain a loan (if financing applies). The lender will require a home inspection and appraisal of the property as well as your loan application. The closing cannot occur until the inspection and appraisal are complete and your loan application is approved.
When the closing papers are all signed, you will receive the keys to your new home and you can start the moving process. You can now paint, decorate and add your own special touches to help you enjoy your new home.
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