The Home-Buying Process Explained.
Relax. You do not have to worry yourself any longer. Buying that home is now easier than ever with the help of these ten essential tips. But remember, it is wise to start your search early and allow yourself plenty of time to see what is available in the housing market.
Original Source Info: Discover.com
I. Sooner the better
As said, it is wise to start your search early. This is a valuable tip that will lead to many possibilities, and the chance to catch the best deals before the market changes. The housing market is always fluctuating as the cost of living changes. With the increase in technology, searching for your new home is now easier than ever. Technology, however, is more than just the electronics we absorb your self into. It is true, you can find a great deal in the realm of the world wide web, but you are also able to expand your search into local newspapers in the particular location you wish to buy that home. But remember you must start your search early and catch those deals before they are gone.
II. To much? To little? Just right.
It is recommended that buyers seek homes that cost no more than three to five times their annual income. This is recommended with the intention of allowing the buyer to make a 20% down payment and have a moderate amount of other dept. But, this does not apply to everyone the same. It is wise to base your determination on your own financial situation.
III. Consider a mortgage.
It is wise to know how much you can spend on that new home. Unfortunately we do not have access to a money tree, but we do have access to a mortgage that will help spread out the payments and in turn allows a more expensive house, to become more affordable for you. The process of prequalifying for a mortgage is fairly easy. You provide your financial information to your mortgage banker. This would include your income, savings, and current investments. This will reveal the price range of the homes you should be setting your sights on. Later, when it is all said and done, you should consider getting your credit approved. This too is fairly easy. You provide your financial documents such as W-2 statements, paycheck stubs, bank statements and more. This will allow your lender to verify your financial status as well as your credit.
IV. Seeking out the best real estate agent.
What is a real estate agent? No, not agent 007. Real estate agents are very important when you are buying or selling a home. They are able to provide you with information that will allow you to better know the homes and neighborhoods that you cannot gather through a simple web search. These agents are skilled in negotiating deals, and are knowledgeable of the home buying process. It is wise to know the are you are interested in calling home. The best part is the cost of the agent. They are free. That’s right, free.
V. Let’s make a deal.
Relax. This does not require you to sell your soul…yet. It is a good idea to start touring homes within your price range. In this time, you can take notes and this will allow you to look back on what you encountered and decide what best suits you. It can be hard to remember everything about each house.
Make sure to check out the details of each house as well as the neighborhoods. If you take as much as you like searching for the house, you are able to lessen the risk of making a mistake. Once you find that dream home, you should work with your real estate agent and negotiate a fair deal. Once you and the seller agree on price, the house will be placed in escrow. This is the period of time it takes to complete all the steps remaining in the buying process.
VI. Make sure it is in the best condition
It is wise to get a home inspection so that you can know any possible structure damage or other things that may need to be fixed or replaced. The results of this inspection can effect the cost of the home. The inspection can be conducted within a few days after your offer has been accepted. This protects you by allowing a chance to renegotiate your offer or withdraw it without risk to yourself.
VII. Select your loan
You are likely to have many questions when purchasing a home and having a mortgage banker to work with you when seeking out the best loan for you, is a wise step to consider. The mortgage banker’s assistance allows the whole process to be completed smoothly.
VIII. Time for some appraise.
Yes, you are doing a good job but I am referring to appraising the home. An appraiser will be arranged by the lender to provide an estimated value of the house. The appraiser is part of a third party company and as a result, not associated with the lender. The appraiser allows all parties to know your intentions of paying a fair price.
IX. Paper work. Paper work. Paper work.
As you can imagine the home buying process results in a great deal of work. One of the most important steps is the paper work. Not to worry, your lender will take care of process. This includes arranging for a title company to take care of all the paperwork and be sure the seller is the correct owner of the home you are buying.
X. QUICK CLOSE THE SALE AND MOVE IN!
The last step has finally arrived. All the work is now behind you as you close the sale. This will require you to sign all the paperwork that is required to complete the sale, including your loan documents. This process could take one to two days after the paperwork is returned to the lender. You are finally ready to move one once the payment is received by the seller.