5 steps to Buying a Home

5 Steps to Buying a Home

Buying a  Home can be a complicated process.  Why go it alone!  Our team can guide you through the process and make sure you don’t miss important steps that could cost you money. We partner with you throughout the entire process, providing helpful information, getting you the best price, in your time frame, with the less problems possible.  FREE Home buyers representation.

image002Step 1:  Deciding to Purchase a Home

  • How long  do you plan to stay in the home? It’s best to think about buying a home if you  plan to remain in the area for at least 3-5 years.
  • Renting vs Buying.  In most cases your mortgage payment can be less then rent, depending on the area. there are also tax advantages to owning a home.
  • Think  about your reasons for deciding to buy a home. Are you considering buying  because you are starting a family? Tired of renting? Trying to make money in  real estate? Peer pressure?

the-more-you-know-about-the-home-buying-process-th1Step 2:  Check out your options

  • Have you  saved for a down payment? There are some program that offer down payment assistance, but they have income limits.  Down payments range from 3.5%  – 20% of the purchase price.
  • Evaluate home prices in your area.  Are there any areas that are more affordable? Will home prices increase or decrease over the next few years? You can use a home affordability calculator to see how  much you can afford to buy.
  • Research mortgage rates and some basic mortgage options. Are  rates supposed to increase or decrease over the next few years? Compare fixed rate mortgage to adjustable rate mortgage.
  • Talk to your real estate agent. Ask them for their advice and opinions about buying a home. What challenges do you face? What tips do they offer?

First-time-home-buyers-better-option-propmart-group-advice-and-toolsStep 3:  Obtain a pre-approved mortgage

  • Start by comparing mortgage rates online without applying. Visit the websites of some of  a few online lenders to estimate your mortgage options. Also evaluate your  options with a local bank and credit union. Many companies have “pre-qualify”  systems to estimate what you may be able to afford. Pre-qualifying is a good  step for evaluating different lenders but is not the same as pre-approving.
  • We can supply you with a list of mortgage broker for your review.
  • Your  pre-approval is basically a promise from the lender that you can qualify to  borrow up to a certain amount of money at a specific interest rate. This  promise is subject to a property appraisal and other conditions, however.
  • Remember,  your pre-approval is for the maximum amount you can potentially borrow. This is  not the amount that you should spend or that you can comfortably afford each  month. Try to use less than the maximum to buy a home.
  • Act  quickly, if possible. Most pre-approval offers last between 60-120 days before  they expire.

3336233318_1a44a060dcStep 4:  Shop for a home

  • What  features are you looking for in a home? Write a list of things that your ideal  home will have. Must have list, and a would like list. Take this list  with you when you go look at homes.
  • Take notes about each home you see. It can be easy to forget the differences between properties when you are looking at several homes a day.  Make a note of anything that needs to be fixed so you can evaluate the cost of  these repairs. You may also want to bring a digital camera along with you.
  • Your real estate agent can calculate  the estimated value of the home..
  • Negotiate  the price. In many housing markets, buyers have the power to negotiate a  reduced price for a home. Work with your real-estate agent to come up with a good bargain.

aStep 5:  Seal the deal

    • Arrange  for a home inspection. An inspection is a necessary step that will be completed during your “due diligence” period.  This will give you a complete picture of the homes condition and allow you to negotiate any repairs that might need to be done by the seller before the closing.  Research your homeowners insurance and warranty options. Shop around for the best deal  on these policies. You’ll need to secure your homeowner’s insurance before  the closing.
    • Obtaining final loan approval from your mortgage lender. Because you are pre-approved, this will be a fairly simple process.
    • Work with your agent and attorney to prepare the closing documents. This is the last step towards becoming a homeowner. There are a lot  of documents to review,  the attorney will go over each of them with an explanation. You may ask as many questions as you like.  We will be at the closing table with you making sure you are protected.