Here are some tips that may be helpful:
First and foremost hire a REALTOR, ask for referrals, conduct an short interview.
Buying a house requires a lot of time and effort on your part and your REALTOR, but these 10 steps can help make the home buying process manageable and help you make the best decisions possible.
Step 1: Get Pre-Approved
As soon as you can, start interviewing lenders, ask all questions to the lending process, find out your credit score. Rates are usually driven by your score so the higher the score ultimately the lower your rate. Go on reputable sites and ask us for lender referrals. We have knowledgeable lenders ready and willing to assist you with accessing your budget.
Step 2: Determine How Much House You Can Afford and where you want to live
Lenders generally recommend that people look for homes that cost no more than three to five times their annual household income if the home buyers plan to make a 20% down payment and have a moderate amount of other debt. BEFORE you do anything to your credit such as paying down debt, ask your loan officer which debt should you prioritize and how making large payments will affect your overall purchase power.
Before you start to look for a home, you need to know how much you can actually comfortably afford.
You should make this determination based on your own financial situation. Ask your lender if they have access to a Affordability Calculator to see how much house you can afford.
Step 3: Gather your financial documents. It is key to a timely and smooth transaction. A lender should never have to chase down a copy of your most recent check stubs, tax returns or financial statements. Lenders will provide a list of financial documents required for your loan process so that you are actually approved. In a "bidding war" a pre-approval holds more weight than a "pre-qualification". The difference in those documents makes a difference in your ability to purchase when you are wanting the same house others may want.
Step 4: Find the Right Real Estate Agent!
WE are the right Real estate agents for you. We work as a team and will do our very best to assist you
along the way. It is important to us that we find exactly what you are looking for within your budget. We like to give you honest opinions and advice about property to ensure that you are completely satisfied. It is also important to us because we want your referral which our business is built on and we take pride in getting referrals. Our agents are equipped with knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in which can be extremely valuable. And best of all, it doesn’t cost you anything to use US as a Buyers agent – Buyers agents are usually compensated from the commission paid by the seller of the house.
Step 5: Shop for Your Home, make the selection then make an offer
Start touring homes in your price range. It might be helpful to take notes on the homes you visit. You will see a lot of houses online and you can narrow those houses down to the houses you would like to see in person. It can be hard to remember everything about them, so you might want to take pictures or video to help you remember each home when you are shown property.
Step 6: Get a Home Inspection
Typically, purchase offers are contingent on a home inspection of the property to check for signs of structural damage or things that may need fixing. Your real estate agent usually will help you arrange to have this inspection conducted within a few days of your offer being accepted by the seller. This contingency protects you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection reveals significant material damage.
Step 7: Work with a Mortgage Banker to Select Your Loan
Lenders have a wide range of competitively priced loan programs and a reputation for exceptional customer service. You will have many questions when you are purchasing a home, and having one of our experienced, responsive mortgage bankers assist you can make the process much easier. We do not do loans and tend to leave those questions to the loan officer.
Step 8: Lenders will have the Home Appraised:
Lenders will arrange for an appraiser to provide an independent estimate of the value of the house you are buying. The appraiser is a member of a third party company and is not directly associated with the lender or agents. The appraisal will let all the parties involved know that you are paying a fair price for the home.
Step 9: We will prepare the paperwork:
As you can imagine, there is a lot of paperwork involved in buying a house. Your agent will review the contract and addendums to the contract so that you have an understanding of the paperwork involved. You’re always welcomed to hire an Attorney at your expense. If you are uncertain about language and terms after a REALTOR explains them it is suggested you hire
A REAL ESTATE ATTORNEY. Although your REALTOR is well versed on the contract, it is always advised to hire a Real Estate Attorney.
Step 10: Close the Sale
At closing, you will sign all of the paperwork required to complete the purchase, including your loan documents. Typically the signing process is under an hour depending on you, and funding takes a few hours. You should receive keys to your new home once your loan funds. Once it funds title will let the agents know the transaction is complete.
You can now Celebrate HOME OWNERSHIP!