Steps in the Home Buying Process. Given today's current market and lower than normal prices in real estate, now is the perfect time for you and your family to purchase a home and save yourself lots of money. But before you start out on this exciting endeavor, there are a few things you as a homebuyer in 2010 should know. I am going to share with you invaluable information on the steps in the home buying process that will save you time, money, lots of unnecessary headaches, and give you the peace of mind you deserve. So here goes...
Whenever you decide to buy a home in today's market do yourself a tremendous service and consider the following advice:
•1. Review Your Finances-First, review your finances. This will help you avoid unnecessary and unpleasant surprises with respect to what you can or cannot afford. Also, consider enrolling in a Home Buyer's Counseling Course which some nonprofit organizations offer. Upon completion of this course, you will receive a certificate of completion which will open the doors to you for grant opportunities. For instance, Union County offers up to $25,000 to first time homebuyers after course completion. You may want to check with the county in which you are making your purchase to see what programs are available. Your Realtor should be able to help you find these programs.
•2. Meet with Lender/Mortgage Broker-Next, it is time to meet with your lender/mortgage broker. At this stage, it is crucial that you discuss preferences, timing, and your entire financial picture-credit history, income/expenses/savings in great detail. Now is not the time to clam up and withhold information. You should remember to be completely honest with your lender/broker because they are the ones who can make any needed corrections to your credit history that may improve your chances of getting financial approval. Once your loan application leaves the hands of the lender/broker and reaches the loan processor, it is too late. The loan processor will not take the initiative to make any changes in your favor that will improve your chances for loan approval. It is also a good idea for you to work with a lender/broker with whom your realtor has developed a good working relationship because that lender will more likely be willing to go the extra mile in getting you financial approval. If you have your own lender, feel free to use their services.
•3. Meet with Your Realtor-During this consultation, it is important that you share with the realtor what it is you are looking for in your new home. While consulting with your realtor, you need to be flexible and realistic about your wants/needs, likes/dislikes while keeping in mind the financial picture painted by your lender/broker. Again, it is important to be upfront, honest, and separate fantasy from financial reality when meeting with your realtor. Your Realtor is not a magician; they can only work within the confines of your loan approval dictated primarily by your financial history. This will help you in the long run and you will ultimately end up thanking your realtor for saving you time, money, and unnecessary stress.
•4. Look at Houses-Once you know what your financial picture looks like and have met with your realtor, now it is time to look at homes that fit your budget-and not a minute sooner! Here it is important for you to be realistic and keep an open mind. Your realtor at this point will rehash with you the things that you indicated were important to you in the purchase of your new home in order to make your life easier and save you time. If you were truly deliberate, upfront, and forthcoming about your wants/needs likes/dislikes during your consultation, this should be a rather easy and straightforward process. If you find yourself having to look at 6 or more houses before you make a decision, obviously something was overlooked during step 3. You should at this point sit with your realtor again to go over what it is you are exactly looking for. Remember to be honest, flexible, open minded, while keeping in mind your financial picture. You do not want to get in over your head and be forced to face foreclosure for lack of care and unbridled wants.
•5. Make an Offer- Once you find a home that meets your criteria and is within your budget make an offer. Take in all that you have seen and go for it. You and your realtor have been very meticulous and have done your homework-so don't be afraid. Remember it is always a good thing to be competitive and allow for flexibility. This is where your agent's sharp negotiation skills will work in your best interest.
•6. Offer Accepted-Once your signed offer has been accepted by the seller, the sales contract is then signed by the seller and then distributed to the seller/buyer/attorney and the mortgage company notified that there has been an offer and an acceptance.
•7. Attorney Review Process-Your attorney will review the sales contract to make sure that it is ok and complies with your best interest. If there are any seller's concessions, surveys or title work needed, your attorney will make the necessary comments and implementations for you during the attorney review process.
•8. Property Inspections-If the contract survives attorney review, it is now time for you to have your home inspected-home inspection (buyer responsible), certificate of occupancy (seller responsible), fire code inspection (seller responsible), etc.
•9. Mortgage, Appraisal, & Commitment-After your property has been inspected, now is the time to get an appraisal done by an appraiser appointed by your bank. The banks are quite interested in this step to make sure their investment is worthwhile. The banks are in the business of giving loans for the sale price or the appraised value of the home whichever is lower. You will be wise to consider home insurance and go over the closing costs with your lender. Also, be sure to ask questions about anything that seems the least bit unclear to you.
•10. Walk Thru-While you are doing a walk thru it is important to take your time, take your time and go over every detail, make notes, take photos, and ask, ask, ask when in doubt-you will be so glad you did.
•11. Closing-Finally, you are ready to sign closing documents, receive keys, and have the title transferred signifying the close of your deal, and possession of your new home. Congratulations! You are now a new homeowner! Sit down, take your shoes off, prop your feet up, relax, and enjoy!
Again, congratulations you have successfully completed the Steps in the Home Buying Process.
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