10 Steps to Buying a Home
January 20, 2022
Buying a home is a huge step in your life but it can be overwhelming too. The process often takes at least six months, with 4 months for shopping and one for closing. Buying a house involves home touring, reviewing your financial options and credit, hiring a real estate agent, negotiations and making offers, and more. The minor details may vary to an extent, but the overall process is the same. Understanding these primary steps is essential for homebuyers wishing to attain their goals and realize their home buying dream. If looking for reliable cash house buyers, these guys buy homes in Pueblo West. But first, below are important steps to guide you during your home buying operation:
1. Get Organized
Organize your financials, determine how much you can afford, and make a list of property types and locations that interest you. Gather mortgage pre-approval information and find out if there is a deadline by which all offers must be submitted to the seller.
2. Define Your Criteria
Make a wish list of what is most important to you in a home and prioritize your criteria. For example, if you have children, good schools in the area may be a priority. If convenience to work is critical, look for listings within a specific distance of your office or research places of employment near potential homes that meet your wish list.
3. Find a Real Estate Agent
Purchasing a new house is definitely an important decision that will have a direct impact on your life. For this reason, it is imperative to choose a reliable realtor to help you navigate the housing market.
Real estate agents are good negotiators, so they can get you the best deal possible when it comes to buying a new home. They can help you read and interpret the fine print and if you’d like the services of a lawyer, they are best suited to put you in contact with one. Also, the benefits of hiring a real estate agent when buying a home greatly outweigh the cost.
4. Get Pre-qualified or Pre-approved for a Mortgage
A lender will carefully review your finances before writing a loan to ensure that you have the financial ability to close the transaction and will remain in the home long enough to recoup its cost.
5. Shop for a Home
Once you’ve defined the area and type of property that suits your needs, work with your agent to view homes on the market or review listings, so you understand local pricing. During this period you should also get an appraisal and inspections done so there are no surprises later.
6. Make an Offer
This is a crucial stage in your house buying adventure which your real estate agent should facilitate. They often use a CMA tool —Comparative Market Analysis— to estimate the exact market value of particular homes by comparing them to recent sales in the same location.
It’s also important to look at the state of the real estate market during this transaction. Therefore, using the CMA, your agent should not only reach a fair price but make room for potential negotiations.
7. Schedule for Inspections
The Zillow Group Report says at least 82% of homebuyers conduct home inspections before making their decision. That’s because inspection contingencies expose underlying issues on the property you wish to purchase. Let your real estate agent recommend a licensed and trustworthy home inspector to navigate this process successfully.
8. Review Your Contract
You can either let your real estate agent help review the contract or hire an attorney at a fee. The contract includes conditions (also called contingencies) you must meet before the closing. For contingency to work, you must partake in various things such as getting pre-approved for a loan (financing contingency) and performing inspections to ensure the home lacks defects before closing.
9. Complete Your Mortgage Application
After your loan pre-approval, you have a few more steps to wind up your mortgage application. Depending on how this goes, your lender will provide a ‘clear to close’ note, indicating they have approved your purchase or they may reject it.
The same lender who pre-approved you for a mortgage application can work through your mortgage application. You’ll have to provide updated financial statements at this point. In addition, respond promptly to their requests to avoid delaying the closing.
10. Close and Move-in
Closing is the final stage in your house buying transaction. You can decide to have a final walkthrough first thing before closing or the day before, or you can bypass the process altogether. During this walkthrough, you can check whether or not the seller made the agreed-upon adjustments and whether the house is still in proper condition.
Your real estate agent will support you in these closing transactions. Carry extra funds to cover closing costs, and expect a handful of hours signing various paperwork. Once everything is complete (signing, recorded, etc.) you’ll get the house keys officially.