The Home Buying Process
Determine Your Budget
Whether you're a first-time or experienced home buyer, the journey of buying a home can be a daunting process. Before you even start looking at houses, it's important to ensure that your finances are in good order. A great way to get started is by using a home affordability calculator to help determine your budget. This will also assist you in figuring out how much you'll need for your down payment. Keep in mind, your down payment isn't the only expense you'll incur during this process. When you understand the financials and set expectations for yourself, you can start the home-buying process with confidence and clarity.
Get Pre-Approved
Getting pre-approved for a home is an important step in the home buying process. It means that a lender has reviewed your financial information (income, assets, credit score, etc.) and determined the loan amount that you're likely to qualify for. They can also educate you on the types of loans and which will work for you. It's important to note that getting pre-approved doesn't commit you to that lender. This is helpful because it gives you an idea of how much house you can afford. It also shows sellers that you are a serious and qualified buyer.
Make Your Wish List
When it comes to house hunting, it's important to have a clear idea of what you're looking for in a home. One way to do this is by creating a wish list. This list should include: the number of bedrooms and bathrooms, location, new build or fixer upper, condo or single family home and any other specific features or amenities that are important to you. Additionally, you can also include the things you are willing to compromise on. Having this list will help you focus on the homes that are the best fit for your lifestyle, needs and budget. It will also help you narrow down your search and make the process more efficient.
Find Your Realtor
When buying a home, having a good realtor by your side is essential for a successful purchase. Your realtor will be your guide throughout the process and you will be spending a lot of time with them. Therefore, it's important to find someone you feel comfortable with and trust. A good realtor will use their knowledge of the local market to find properties that match your needs and budget.
House Hunting
It's time for the exciting part! Start your house hunt by sharing your desired location, budget, and features with your real estate agent. They will use the Multiple Listing Service (MLS) to find properties that match your criteria. Once potential homes have been located, your agent will schedule tours for you to view the properties in person.
Make an Offer
When you find the perfect home, it's time to submit an offer. Your real estate agent can assist in creating a competitive offer by providing valuable market data, guidance on contingencies, closing date, home inspections, and other terms. The seller may accept, reject, or counter your offer. In the event of a counteroffer, your agent will negotiate on your behalf to try and reach an agreement.
Under Contract
Congratulations, the seller has accepted your offer and you are under contract! The home isn't yours yet, but no one else can buy it while you are under contract. At this point, you will submit your earnest money to your title company and secure your mortgage loan.
Inspections
The inspection period is a crucial step in the home buying process. During this time, a professional inspector will examine the property to identify any potential issues or defects. This visual assessment covers all aspects of the house and its systems, from the foundation to the roof. After the inspector delivers their report, the buyer has the opportunity to review it. Based on the findings, the buyer may negotiate repairs or concessions with the seller.
Appraisals
If you are applying for a loan the lender will arrange for an appraisal. An appraiser will assess the value of the property by taking into account factors such as the condition of the property, the location, and recent sales of comparable properties in the area. The lender will use this information to determine if they will approve the loan and at what terms. It is important to note that an appraisal is not the same as a home inspection.
Final Walk Through
A few days before heading to the closing table, you and your Realtor will do a final walk-through of the home. This is an opportunity for the you to ensure that the home is in the same condition as when you signed purchase. You will also confirm that any promised repairs are complete.
Closing Day
Hooray! Closing day is here. This is the final step in the home buying process. Your lender will provide you with your closing disclosure outlining you loan terms and other closing costs. This document signifies that your lender has cleared your loan for closing. Once the paperwork is signed and the funds transferred, you'll be given the keys to the property. Congratulations, your new home is now yours to love and make memories in.