What an exciting time. It’s time to buy your first home, your own home (and your mortgage). A place you can call your own. It’s a big step, literally and figuratively. Traveling isn’t always the easiest, but with some preliminary work you will make it easier, and getting the keys to your new home can be one of the most rewarding feelings ever.
The key to get there? Know the process of buying a home. Know what tools are available to you and most importantly, build relationships with experts who can help you get the job done. Below are some key steps you will take during the home buying process, along with an explanation of the relationships and experts you will need along the way.
DO YOUR HOMEWORK
Sure, everyone wants to jump right into the open houses, but this is not the place to start. Before you even set foot in a foyer, make your list of “got to” and “want.” This list is a listing of the priorities for your search. And there is so much to decide: price, type of housing, neighborhood and school district, to name a few.
If you are planning to buy a home with a partner (in life or in real estate) you want to be on the same page. If it doesn’t, there can be less information available to your broker or lender to help you out. You also risk wasting time touring houses that you can’t afford – or don’t want to.
FIND A GREAT AGENT
Your relationship with your agent is the foundation of the property buying process. He or she is the first expert you meet on your trip and who you will most rely on. That is why it is important to interview brokers and find the right one for you. Ask friends and family for recommendations or look for reviews online.
CHOOSE A RENTAL AGENT
Once you find your broker, ask him or her to recommend at least three mortgage lenders who meet your financial needs. This is another big step as you will be working closely with your lender throughout the home buying process. Getting pre-approved a home loan before finding the perfect home is important so that you are ready to come up with a quote.
CHOOSE A LOAN
Once you have decided on a lender (or mortgage broker), you will work with your loan officer to determine which mortgage is right for you. They take into account the percentage of your income you would like to spend on your new home and provide the lender with documentation showing proof of income, employment status, and other key financial information. If all goes well (cross your fingers) you will receive pre-approval for a loan in no time.
GO TO EXHIBITIONS AND LOOK AROUND
Now that you have both a realtor who knows your housing preferences, including budget, and a lender who will finance a home within that budget, it is time to get serious about home viewing. Your broker will provide you with offers that you might like based on your parameters (price range, zip codes, features) and will also help you determine the quality of the offers you can find online. Then comes the fun part: demonstrations that give you the unique opportunity to evaluate properties. Your broker will help you navigate demonstrations, whether virtual or in person.
MAKE AN OFFER
Once you find the home you want to buy, work with your realtor to come up with a quote that will not only state the price you are willing to pay, but also the proposed settlement date and contingencies – others Conditions that are up to both parties, e.g. B. the possibility to carry out a house inspection and request repairs.
NEGOTIATE, NEGOTIATE, NEGOTIATE
Making an offer can feel like an emotional chasm, almost like asking someone out on a date. Do you like me? Am i good enough Will you say yes? It’s stressful. Some home sellers simply accept the best deal they get, but many sellers make a counter offer. In this case, you need to decide whether you want your broker to negotiate with the seller or go away. This is one area where your broker can add real value by using his / her knowledgeable negotiation skills to haggle on your behalf and get you the best deal, despite very little haggling in the market today.
HAVE THE PLACE CHECKED
Most sales contracts include a home inspection contingency, which means you hire a licensed or certified home inspector to examine the property for any repairs that are needed and then ask the seller to have those repairs done. This will reduce your risk of buying a home that has major problems lurking beneath the surface, such as mold or cracks in the foundation.
ASS THE EVALUATION
If you are offering to buy a home, your lender must have the home appraised to ensure that the property has sufficient value to cover the mortgage. If the home is valued near the agreed purchase price, you are one step closer to settling.
COMPLETE THE CONTRACT
The final stage of the property buying process is the settlement or closure. This is when you sign the final ownership and insurance papers and make this whole process official. When all is said and done, break out the champagne. You have the keys to your new home. When it is time to buy or sell your home, get in touch with a member of the Stark Trumbull Area Realtors.