The home buying process can be very exciting, but there are many things to take into consideration aside from just searching for beautiful homes. From your personal finances to homework on location, allow our expertise to be of valuable assistance and lead you through the process. Below is a list of important steps of the process that we have compiled for you to get started.
Credit/Pre-Approval: Reviewing your credit score and creating a solid budget are some of the very basic steps to begin with in your home buying process. Connecting with a reputable mortgage agent will be one of the first things to do as they can pull your credit report and let you know exactly what you will be able to be approved for in regards to a loan amount. Getting a pre-approval letter is also imperative as you should have that on file for when you are ready to make your offer.
Line up your finances: A mortgage agent will help you with your loan, but you need to be sure you have cash on hand for a down payment and closing costs. Keep in mind if you are putting less than 20% down, you will most likely be paying private mortgage insurance or “PMI” which will add on a small charge to your monthly payment. Your mortgage agent can review your options with products that vary in the amount you have to put down as well as options for you for down payment sources. In addition, it is wise to refrain from making any large purchases during this time.
Select a Neighborhood: There are many towns to consider when looking for your home. However, location from town to town can really vary in what they offer. Each town offers a unique way of life and finding one that suits your needs is where we can further assist. Finding out about school systems, even if not for you but for resale, area amenities and strength of the real estate market in that particular town are good things to investigate. Whether you are in search of a seasonal home or all year round, we can guide you through all of the areas of consideration and point you in the best direction for your personal needs.
Ask Questions/Keep it Business: As exciting as the home search can be, there are questions that you want to be asking while you when visiting properties. Some may seem fairly obvious, but may not be at the top of your list when you are excited about a particular property. Ask questions like age of systems, why the seller is selling and find out the proximity to nearby service. Try to keep emotion out of the equation and back up your decisions with concrete reasons as to why this home is a good financial investment and place for you to call home.
Get it Inspected: A home inspection is one of the most important things that your money can buy in the home buying process. Even if the home is relatively new, only a professional inspector can give you the best information about the condition of the home, how well things were built and what future costs may need to be incurred. Information gathered from your inspection can assist you in budgeting for future repairs or in some cases can influence your offer should larger fixes be in need of immediate attention.
Enter Contract: Once your home inspection is complete, the next step is to enter contract and execute a Purchase and Sale Agreement (P&S). Upon signing the P&S, terms will be solidified in regards to purchase price, down payment, financing commitment date as well as closing date. Be prepared to provide funds for your down payment to accompany the signing of the P&S.