Buying a house can be an overwhelming experience, but these 10 steps can help make your home buying process more manageable and enjoyable!
Step 1: CHECK YOUR CREDIT
Before contacting a lender, it is smart for you to check your credit report. By law, you can get a free report once a year. Having the information in hand prior to talking to a lender lets you dispute any errors that may have arisen in the reporting. Remember, the higher your score, the lower the interest rate on your mortgage.
Step 2: FIGURE OUT HOW MUCH YOU CAN AFFORD
Just because you may qualify for a larger mortgage doesn’t necessarily mean you WANT to have that kind of payment each month. Decide how much you are willing to pay. Researching online and in the newspapers allows you to get a good sense of what your money will get you.
Step 3: GET PRE-APPROVED BY A LENDER
Getting pre-approved for a loan early in the search for your home is a smart move. To get pre-qualified, you just need to provide some financial information to your mortgage banker. Your lender will tell you the price of the homes you should be looking at. Talk to your lender about the different types of loans that are out there. Lenders also have the ability to tell you about grants and other programs available to you!
Step 4: FIND A REAL ESTATE AGENT
This is when you call us! Whichever Realtor® you choose here at NextHome Alliance will be your lifeline throughout the entire process. Realtors® aren’t just agents. They are professional members of the National Association of Realtors® and adhere to a strict code of ethics.
Step 5: START LOOKING AT HOMES
Start touring homes in your price range. Buyers see a lot of houses! It may get hard to remember everything about them, so taking pictures and notes on the homes that you do visit is a smart idea! It is also important to evaluate the neighborhood. Take as much time as you need to find the right home for you!
Step 6: MAKE AN OFFER
Once you’ve found the home of your dreams, you will work with your Realtor® to come up with your offer. It’s important to remember that the listing price is only a starting point. Your Realtor® will have a better understanding of the market and will help guide you to make the most attractive offer.
Step 7: THE HOME INSPECTION
If you decided to get a home inspection, this is a big day. A home inspection of the property will check for signs of structural damage and other things that may need fixing. Having the contingency of a home inspection allows you a chance to renegotiate your offer or withdraw it without penalty is the inspection reveals significant damage. This is also a great day to go and take measurements so you can figure out what will go where.
Step 8. THE APPRAISAL
Your lender will arrange for an appraiser to provide a estimate of the value of the house you are buying. The appraiser is a third-party company and will let all parties involved know that you are paying a fair price for the home.
Step 9. CLOSING DAY
This is a big day! At closing, you will sign all the paperwork required to complete the purchase, including your loan documents. You are nearing the finish!
Step 10. GET YOUR KEYS
…and move in! You are now a homeowner!