12 STEPS TO BUYING YOUR HOME
Get Smart . . . Get Pre-Approved for your Home Loan today!
If you’re in the market to buy a home, knowing what to expect from each stage can make it easier to navigate an otherwise overwhelming process. Buying a home may be the biggest purchase you’ll ever make, so it pays to be prepared whether you’re just browsing, or ready to make an offer.
These 12 steps can guide you through the homebuying process:
1. Decide if you're ready for homeownership
Consider your lifestyle, job situation, future plans, and housing needs for at least the next 5 to 10 years.
FACT: In 2017, the average homeowner stayed in their home for 10 years.
2 - 5. Get Pre-Approved by a reputable lender
Once you think you may be interested in buying a house, your first step should be getting pre-approved by a reputable mortgage lender. By going to a reputable mortgage professional at the very beginning of the process you will remove a lot of the unknowns about your ability to buy. You will also find out about your credit and if there is anything that needs to be fixed. And you will learn what you can afford and get assistance in developing a realistic budget.
6. Find And Experienced Real Estate Agent
Now that you are pre-approved, it’s time to start shopping for houses. While you don’t have to use an agent to buy a home, using a real estate professional can be very helpful, and potentially save you money and avoid many pitfalls involved with home buying and homeownership. Find one who is familiar with your desired neighborhood and has good reviews/ratings.
7. Start Home Shopping
Your agent can schedule showings at properties you’re interested in and send you listings that might be a good match. Take your time to shop around to get a feel for different styles and locations.
8. Make an Offer
Your agent can help you make a fair offer based on your budget, market conditions, and other factors.
Your offer will usually be based on:
- Comparative market analysis
- Market trends
- Number of days on the market
- Seller’s motivation and priorities
- Competition
9. Your offer is accepted and purchase contract is fully executed
After some back-and-forth negotiations, you and the seller have come to terms and you both execute the purchase agreement.
10. Do your due diligence
Once the offer is accepted, the inspection period begins. This period can last between 10 and 15 days. It’s time to hire a professional home inspector to inspect the home for any potential issues. Once this process is done, and the results are to your satisfaction, your lender will order the home valuation appraisal.
11. Wait for the clear-to-close
Your mortgage lender has been working diligently on preparing your loan file and submitting it for underwriting review and approval. You may have be asked to provide additional supporting documentation during the process to aid the underwriter in the approval process. Once your loan has received final underwriting approval it is now clear-to-close. Preparations will begin to draw the loan docs and schedule your closing.
12. Close on your new home
You are set to close on your new home. Closing involves signing all of the loan and title paperwork. This is when the home is officially yours. You get your keys and can start moving in!
Congratulations! Enjoy your new home and all the benefits of homeownership.
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I'm ready to buy a home! What is my next step?
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