Have you recently decided its time to buy a home?
Buying a home can be a very complicated process, so Steve has created 10 Steps to Buying A Home checklist to help you determine if you are ready to buy a home. By following this checklist, you can be prepared to act when the perfect home comes along.
Below is an outline of each of the 10 Steps to Buying a Home:
Step 1: Get Educated. Educate yourself by starting with a Buyers Guide to owning a home. The guide will walk you through whats happening in the housing market, what you need to know before you buy, and what to expect when buying a home. Once you have a basic understanding, its time to contact Steve and set up a meeting to discuss your goals.
Step 2: How Much Can You Afford? Create a budget with a mortgage payment that is comfortable for you. If you are renting now, it that a payment that works for you? The amount of money you may be able to be lent, might exceed what you want your payment to be. How much house you can buy is not as important as what you want your payment to be.
Step 3: Get Pre-Approved. Contact a lender for a loan pre-approval to confirm how much you can afford. Don’t forget to mention what you would like your payment to be if you already have a payment figure in mind.
Step 4: What Kind of Home to Buy? Make a list of features you NEED and also what you WANT in your new home. As you shop your list will change, keep editing and refining our list. Make sure to notify your agent that your list has been updated and talk about it.
Step 5: Shop for a Home. Take your time, look at many homes, take notes and ask questions. Steve and his team love questions!
Step 6: Make an Offer. Steve and his team will advise you and submit a signed proposal specifying the purchase price, terms and conditions to the seller.
Step 7: Get a Home Inspection. A home inspector will examine the home’s condition and alert you to any issues that may be present. This is crucial as many homeowners don’t know there is an issue with their home until its brought up in an inspection as they can disclose only what they know about in the Seller Disclosures. A few hundred dollars spent can save you thousands in potential repairs down the road. It’s a time to either renegotiate the purchase price and/or have repairs made or walk away and continue shopping.
Step 8: Apply for a Loan. Shop around for a reputable lender and a loan product that works for you. Banks, Credit Unions and Mortgage Companies offer different products, shop them all. But do this all at one time so the credit bureaus don’t deduct from your credit score for too many inquires. If all inquires are done within a short time period, it will only count as one inquiry. Be honest with the lender and let them know you are shopping.
Step 9: Get Homeowners Insurance. Homeowners insurance is required by your lender to protect your home from hazards like fire, storms and floods. Its good to compare and shop for insurance as well. Some insurance companies offer discounts for multiple policies, as your insurance agent.
Step 10: Close on Your Home. Closing day is when the seller receives the funds and you receive the deed and keys to your new home!
Once you find that perfect home, the process takes anywhere from 30-45 days with most mortgage companies. If there is a delay, such as repairs that stemmed from the home inspection, additional time will be needed accordingly.
For a list of qualified lenders, home inspectors, and/or insurance companies please feel free to contact Steve today.