Buying a home is exciting! But it also involves multiple steps during the process that can seem overwhelming. If you’re a first-time home buyer or if you want to learn about the home buying process, we can be your guide through the home buying process from start to finish. Check out a brief summary of the steps below:
Step 1: Determine Your Housing Needs
There’s many reasons why people buy homes. Some may need to relocate for a job, or need more space, or finally want to have their own home.
Whatever the reason might be, it’s important to keep in mind that your housing needs are unique to you, so make sure to list the home features that are essential in a property you’d consider buying before you begin a home search.
You must also determine the financial amount you would be able to budget for and the amount of down payment that you must save before searching for a home.
Step 2: Get Pre-Approved for a Mortgage
In order to search for homes that fall within your price range, you must first get pre-approved in order to know what you can afford.
This is one of the biggest steps during the home buying process. Budgeting and your savings can only tell you part of the picture, but to find out what price on a home you can afford, you should get pre-approved for a home mortgage.
For a smoother mortgage process, you should meet with the right mortgage professional. They will request documented financial information in order to get you pre-approved for an estimated mortgage amount and get your pre-approval letter.
It’s also important to shop for the right real estate agent that will keep your best interests in mind when helping you buy your home. The agent will help guide you through the complexities of the home buying process, and make your overall experience as painless as possible. Don’t forget to share your pre-approval letter with your real estate agent so that they help you choose properties that would fit your price range.
Step 3: Begin Your Home Search
Now it’s time for the most exciting part in the home buying process! Once you know how much home you can afford and have a list of all your must have’s you can start searching for a home with those features in your price range.
There are multiple online home listings services like Zillow, Trulia to name a few that have pictures you can look through or search here on our website, but it’s important to schedule a home showing with the real estate agent to experience the house for yourself.
It’s also important to understand that those home listing services sometimes don’t have the most up to date and accurate information so the best resource to answer all your real estate related questions or to find out more about a property would be a real estate agent.
Your real estate agent can help you narrow your home search criteria and find your dream home. You can also ask the real estate agent to register you for their Multiple Listing Service (MLS), so that you can get email alerts to let you know when a home with your ideal features is listed on the market.
Step 4: Make an Offer to Buy the Home
Now that you’ve found the perfect home, it’s time for your real estate agent to help you research what the best price for the home would be using comparable homes that have sold in the area or to do a market analysis for you. Once you have an idea of the comparable properties, then the next step is to make an offer to buy the house.
When placing an offer on a specific property, you will provide the seller your mortgage pre-approval letter and earnest money between $500-$1,000, which will be deposited by the listing agent into an escrow account, which holds onto your payment until the home is yours.
Step 5: Filling Out Paperwork
Once your offer has been accepted there will be lots of paperwork to be filled out to complete the mortgage application process, which also includes, the initial contract, the purchase and sale agreement and other requested forms.
But don’t feel overwhelmed by it all, your real estate agent will help you handle real estate paperwork that comes your way and will guide you through the process. It is also recommended to seek the services of an experienced Real Estate attorney, if one is not provided to you by the mortgage professional in order to have extra protection for such a huge financial purchase.
Step 6: Get a Home Inspection
Before signing the Purchase and Sale agreement to officially purchase your home, you’ll want to order a home inspection. During this step in the home buying process, an inspector can tell you whether the home you’re interested in has structural damage or needs major fixes. Depending on what the inspector finds, you can then adjust the purchase amount on the property or work with the sellers to negotiate for them to try to fix anything major.
You can arrange a home inspection within a few days of having your initial home offer accepted by the seller.
Step 7: Closing on your home
After everything has fallen into place, securing your mortgage loan, ordering the home inspection, negotiating on a home price, and signing all the paperwork you are now ready to close on the home!
Now you’ll want to establish utility services to your new home, take a final walk-through to make sure everything still looks good, and make sure any issues have been settled.
Congratulations! Your new home is yours!
Want to Learn More About the Home Buying Process?
If you have any questions about the home buying process contact Movementum Realty at any time. We would be happy to guide you every step of the way!