10 Important Steps to Purchasing a Home
Buying a home іs an exciting time and an important decision, for thіs іs most likely going tо bе оne of the biggest purchases уou will make. It mіght sеem a bit daunting, but a bit оf homework аnd education will allow yоu tо stay on top оf thе top of the process from potential buyer to being a homeowner. Familiarize уourself with the hоmе purchasing process by first:
1. Hiring a Buyer's Agent
Finding a qualified buyer's agent is very important. Interview agents to see which one you feel most comfortable with and have confidence that they will find you the right house and negotiate the best deal for you. One way to ensure this is to hire an agent who only works with buyers. They will have fiduciary responsibility to you and not to any home owner who is selling their home.
2. Talk with a Mortgage Lender
Now that you have decided to purchase a home you next need to find out what you are able to spend on a home. Ask your lender about the importance of the pre approval. This will not only allow you to know the maximum you can comfortably spend, but this also gives you the opportunity to learn about different loan types you may qualify for.
3. Viewing Homes
This can be the most fun part of the home buying process; viewing homes you are considering making your own. The buyers agent you have hired will have helped you narrow down the amount of homes you will see by the criteria you have given them for your dream home.
4. Mаking А Purchase Offеr
Remember, thаt purchasing а hоmе іs аn investment, and уour purchase offer shоuld bе а strategic one. Your realtor will show уоu homes that arе aligned with уour nееds, but іt is up to you tо select thе rіght homе that fits your needs. Imроrtant factors tо include are thе list price, thе market analysis issued bу уоur real estate agent, and any improvements or renovations thаt may bе required. Yоu realtor will provide іnformаtion of simіlar homes in thе neighborhood, allowing уou to execute an appropriate offer.
5. Open Escrow
Now that you found your next home and have an accepted offer it is now time to start moving toward closing on your new home. During this period many actions take place and your agent will be able to walk you through each step to ensure a smooth process. Common steps after an accepted offer has taken place are: earnest money deposit, home inspections, home appraisal, title search, final mortgage approval documents, and preparing utilities to be transfered into your name.
6. Call your Mortgage Lender
To keep the closing process on track you will need to contact your mortgage lender very soon after you have the accepted offer. Your lender may want to review all previous documents you have provided them when they gave you the mortgage pre approval and they may require additonal documents. You and the lender will also decide on when it is the best time to order the home appraisal.
7. Нome Inѕpections
Having a home inspection is generally a good idea. A licensed home inspector will provide you with a detailed report of the condition of the property and will advise you on any potential repairs needed.
8. Home Insurance
You need to protect your biggest investment by purchasing home owners insurance. This will go active the day of closing and will generally be included in the escrow portion of your mortage payment. Before closing your mortgage lender will require you provide information on the insurance company and policy you have chosen.
9. Prepare Fоr Closing
Now that all the due diligence has been completed it is now time to prepare to close on your new home. You and your real estate agent will schedule a final walk through of your new home before you close on it. There are many reasons for this which include making sure all home inspection negotiations were completed and the home is still in the same condition as when you wrote you offer to purchase. Your agent will also help you coordinate a date, time, and location of when you will close on your home. Your mortgage lender and title company will be preparing the HUD Settlement Statement which outlines all financial details of the transaction and will prepare you for any money you may need to bring to the closing table. At this time you may also want to call the utility companies and schedule a day to turn them on in your name.
10. Closing on your new home
An exciting time for all parties involved. You have arrived at the location and sit down at the closing table with the sellers. The closing attorney will go over in detail all documents required for you to own your new home. Once all the documents are signed and everything gets approved you then have officially become a new home owner!
What are your next steps?
Is it time for you to get Pre approved for a mortgage?
If you are considering purchasing a home in the near future and are ready to start pre preparing fo the pre approval process fill out pre approval request form here.
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