How to buy a home

By
Real Estate Broker/Owner with Condoideas Realty Group

1. You need to have an established credit score. The reports are handled by the main credit agencies known as TransUnion, Equifax and Experian. They act as a proof as to whether you are a late payer or not. They calculate your credit score which is your access key to the best interest rates or even to financing.

2. Your budget has to be set. It is important to be aware of what you can afford. Online calculators do exist for that purpose. You can also ask a lender who will look into details at your debt , credit and income, thus determining the loan you should ask for. If the home does not cost more than 2 ½ times your gross annual salary and the monthly home payments are below 36% of your gross monthly income, it is a green light!

3. Prepare cash. Cash is compulsory for the deposit and closing costs. 20% of the home's price often stands as a down payment. If more money can be deposited in advance, the lender would be more likely to approve a bigger loan.

4. Follow a trustable agent: when a unit is listed on the real estate market, it is most likely to be through an agent who is at the service of the seller. You can either buy through them or through an exclusive buyer agent who represents your interests only. Access to properties is the same, only allegiance can differ.

5. Get involved in the home search. As a buyer, you need to have an idea beforehand of what you are looking for in terms of neighborhood based on economic vitality. It is the best indicator when it comes to attracting renters or selling your property back.

6. Make your offer. Line up data, your leverage depends on the pace of the market!

7. Sign the contract with your lawyer and real estate agent. Contracts are contingent upon good faith deposit, mortgage approval, inspection and final walk-through.

8. Close the deal. 2 days prior to the closing, a final HUD Settlement Statement will be drafted by the lender, listing all the expected charges.

You are done, congratulations! Find more advice here!

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Rainmaker
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Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

You nailed it ! Buyers need to review this list to enjoy a successful home purchase !

Jun 10, 2016 12:28 AM #1
Rainer
69,338
Shawn and Angela Miller
Berkshire Hathaway HomeServices Amabassador Real Estate - Lincoln, NE
Lincoln and Omaha, NE REALTORS®

Great list for buyers just getting started!

Jun 10, 2016 12:50 AM #2
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Rainmaker
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Daniela Pellicciotti

The Miami condo specialist
Ask me, I don't bite !
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