How Does the Home Buying Process Work?

Are you sick of paying rent every month and having nothing to show for it? Buying a house can be intimidating, but being well educated on the various stages will help you ease through the home buying process. So, here is your step by step guide to home buying!

Take a Look at Your Finances

First things first; look at your credit score. You can check online or through your bank. This will define how large of a loan you are able to take out. After doing this, you will have a better idea of how much you can spend.

Consider your budget. While you may be eligible for a $500,000 loan, you should take into consideration what your monthly payments will look like. Take a look at the other monthly payments you have, and then calculate what the best price range is for you.

Get pre-approved for your mortgage. This will vary based on your income, savings, investments, etc.

Determine Your Must Haves

The next step is to determine which features are must-haves in your new home. A few things you may want to consider are:

  • number of bedrooms/bathrooms
  • size of the yard
  • fireplace
  • age of home
  • cost of repairs
  • kitchen style/size
  • age of appliances
  • floor plan
  • neighborhood
  • location in relation to schools
  • parking
  • traffic

Start Shopping

Take advantage of open houses. Your realtor will also help you navigate the area to ensure you are seeing the best houses to fit your wants and needs. When you are looking around each house, take photographs or videos. After touring so many houses, it is easy to get them mixed up, so take notes and photos! Have your checklist in hand to see how each house compares. Make an offer when you decide on a home and talk with your real estate agent to determine a fair and reasonable price to offer. It’s possible you may go through some negotiation. Once you and the seller determine a price, it is time to move through the rest of the home buying steps, contingent on an inspection.

Set Up an Inspection

Your real estate agent should assist you in arranging a house inspection. It’s typically done within several days of the accepted offer. If anything comes up during the inspection that you were not aware of, you have the ability to renegotiate or take back your offer.

Final Financial Steps

At this point, you will work with a mortgage banker to determine what loan program you want. Some individuals prefer to pay as little as possible for a longer time period, while others prefer to pay off the loan as quickly as possible, which will increase the monthly payments. An appraiser will then evaluate the house being purchased to ensure that the home is being purchased at a fair price.

Close the Sale

At this point, you are nearly finished! On the agreed-upon closing day, you will sign the rest of your loan documents and any other outstanding paperwork. Congratulations, you now own a home!

Time to move in!

Whether you are first time home-buyers, empty nesters, or a veteran looking to buy a home, Jessica and Sarah are ready to help you find your dream home! Contact us today to get started on the home buying process.