Buying a home is an exciting process yet there are several steps that are involved for a successful sale. I have prepared a list of basic steps below for you to follow so that you can be best prepared. Take these into consideration to help make the process go smoothly.
Find a Mortgage Lender:
Hiring a mortgage agent is one of the first steps that you will want to take in the process. They can help you with getting pre-approved for an amount to borrow for a loan. This important information will set the price range of homes that will be in your search. In addition, they will provide you with a pre-approval letter that you will want to have to accompany your offer.
Limit Your Spending:
An important step in planning to purchase real estate is to save your money. You will need to have enough money for your down payment, closing costs and other miscellaneous expenditures throughout the process. A mortgage agent can provide you with a good faith estimate of what costs to expect depending on your situation. It is wise to refrain from making any large purchases during this time as that can affect your qualification for a mortgage.
Each town and neighborhood offers unique amenities, culture and services so be sure to do your due diligence and investigate which areas are best for you. Factor in things like proximity to transportation and your work commute as well as price of the homes that are accommodating for your needs.
Conducting a home inspection is vital for having better knowledge of what your new home may require for repairs. Not only does an expert know exactly what to look for with regard to current conditions, but this information can help you with budgeting for future expenses. Should any extensive repairs be needed, this can call for further negotiation with the seller.
After your inspection has been completed and is satisfactory, then the next step is to sign your Purchase and Sale Agreement, commonly called “P & S.” This agreement outlines all terms of your offer including important dates and will be accompanied with your down payment funds. You may have more steps for financial approval, but this will be the next big step until your walk through followed your actual closing.