It’s time to begin the next chapter of your life, and you’ve decided that this chapter begins with owning a house. What an exciting time for you! Don’t let fear of the unknown delay your progress. Check out these 6 steps to buying a house before you begin your search.
Step One – Money in the Bank
Getting a home mortgage loan to cover the cost of your house purchase is pretty common. Most people don’t have the cash on hand to pay out-of-pocket. Keep in mind that you will need cash to pay for certain things during the home buying process. You will need a down payment. The down payment is typically 20 percent of the sale price of the property. There are times when the seller will pay the closing costs, but you should be prepared to pay those if the need arises. The closing costs can be between 2 – 8 percent of the selling price.
Step Two – Credit Worthiness
Your credit score is important, but the mortgage loan officer will go through your credit report and look for negative items. If you have errors or delinquent accounts, it could delay progress on getting your home loan approved. To keep this from happening, secure copies of your credit report ahead of time and take care of anything that needs your attention. Fortunately, you can get these free of cost, once per year, thanks to the Fair Credit Reporting Act.
Step Three – Secure a Real Estate Agent
You may be an expert at many things, but the real estate market is a whole different game. There are legal aspects to consider and new terms you may be unfamiliar with as you move through the process of buying a home. Having a professional real estate agent in your corner can save you time and money. Aside from those positive reasons for finding a real estate agent early in the process, you should consider that they are strong negotiators. You are going to want one of those to represent you if your offer has competition.
Step Four – Home Loan Pre-Approval
A home loan pre-approval letter helps you in several different ways. Getting pre-approved for a home mortgage loan will help you target the correct price range for your house search. This will save you time and disappointment. There is nothing worse than finding the perfect home that is thousands of dollars outside of your price range. The pre-approval can help you during a time when your offer comes up against another one. This letter shows a seller than you are serious and have the ability to follow through with the sale. This can turn the tides in your favor.
Step Five – Wish Lists
Knowing what you need and what you want is an important step in the home buying process. Create a list that includes must-have items and things you dream of having in your perfect home. Mark them so that you can easily see which items are negotiable and which ones you just can’t budge on when it comes to finding the right property. Give this list to your real estate agent. The list will help them narrow down properties for you to tour and save you time.
Step Six – Make the Offer
Once you’ve found the home that checks all the right boxes on your wish list, it’s time to make an offer. Consult with your real estate agent so that you’re making an offer that stands out from the rest. Don’t be surprised if you have competition. Remain cool and let your real estate agent work wonders on your behalf. Once your offer is accepted, you will be on the road to inspections, an appraisal, and the final closing day.
Your real estate agent is the best source of information about the local community and real estate topics. Give The Soladar Group a call today at 323-481-7907 to learn more about local areas, discuss selling your house, or tour available homes for sale.