The Home Buying Process
Steps To Take When Buying A Home
Purchasing a home is one of the biggest financial decisions you will make. Having an understanding of the necessary steps to buying a home will not only make you more confident in your home buying journey, but also make the purchase process as seamless as possible. Educationg yourself about the home buying process and taking the necessary steps will make you a more savvy purchaser and help guide you in making the best decision to reach your goals. We'll help you navigate the home buying process with our step by step guide - Financial Assessment, Getting Pre-Approved, Finding Your Home, Offer Accepted.
Financial Assessment
Before you start the home buying process it's important to do a full financial assessment. Start by checking your credit report and scores. Mortgage lenders will look at your credit score as one of the factors to determine whether you will be approved for a loan. Next figure out how much cash you will need. Typically you will need money saved for a down payment, closing costs, and the home appraisal. You'll ideally want to plan for at least a 20% down payment. Determining what you can afford is an essential step in the home buying process. Mortgage lenders will look at your debt-to-income ratio to determine how much of a loan you qualify for. In addition to the mortgage principal and interest costs you may need to buget for expenses such as property taxes, mortgage insurance, homeowners insurance, and HOA fees.
Getting Pr-Approved
In a compettitve real estate market, where homes get snapped up very quickly, Pre-Approval letters are your ticket to your dream home. A Pre-Approval will layout your income, credit history, downpayment and cash reserves. That information will allow you to obtain a loan up to a specific amount. It also affirms that an underwriting department has reviewed and verified your current financial situation. ShopMortgageQuotes matches you with lenders so that you can find the best rates on the market. Once you select your mortgage lender your will be able to start the Pre-Approval Process. Getting pre-approved will reduce the amount of paperwork you’ll have to fill out later and lets real estate agents and sellers know you are a qualified buyer.
Finding Your Home
After completing the pre-approval process you will have an accurate picture of what payments you’ll be able to afford when shopping for your home. The home you purchase should not just be looked as a place to call home, but also as an investment in your future. Finding a good real estate agent is sometimes an overlooked part of the home buying process. A good realtor can save you money, and also help ensure you close on time without any issues. Discuss your short and long term goals for the property with the real estate agent you selct so that they can make the best offer to the seller.
Offer Accepted
Now, you’ll draw a contract based on the agreed upon purchase price, closing date, and other contingencies that you may want to include. Contact your mortgage lender to submit your application. Your mortgage lender will prepare disclosures for your review based on property and other factors. Schedule a home inspection to make sure there are not any structural or mechanical issues with the home that could cost you a lot in repairs down the road. Once the inspection, loan conditions and appraisal are complete, the lender will issue a mortgage commitment which is a guarantee that you are fully approved for the mortage and can proceed with closing on the home.