Buying a home can be an intimidating process even if you have done it before. There are so many rules and regulations to the process of home buying, but being armed with the right knowledge and Realtor can help you realize the dream of being a homeowner.
There are 10 basic steps to the process of buying a home. One of your Realtors jobs is to guide you through these steps making a smooth transition.
1. Get pre-qualified with a lending specialist. First and foremost, you need to talk with a lending specialist to get pre-qualified and to come up with a budget/plan on how much you want to spend on your mortgage. Don't waste your time looking until you do this first step. If you don't know a lending specialist to use, hire your Realtor first and they can guide you.
2. Hire a Real Estate Professional. There are so many rules and regulations to the process of buying a home, you want to make sure you do it right, and have a professional on your side working for you. They are there to complete all the paperwork, negotiate with the sellers agent, and make sure you are not paying too much for the home.
3. Look for the right home. There are many places to search for homes online before ever going to look at one. The best place to look is your local MLS site, and Realtor.com. Be careful of some of the other sites as the information is not always accurate. Do some research, narrow down your list and be in contact with your agent so that they can schedule showings for the ones you want to see in person.
4. Place an offer. Place an offer an your top pick. Your Realtor will pull a list of the comparable homes and see what they have sold for. This is how you will decide on what to offer. Your Realtor will help guide you in this process, make sure you are knowledgeable and have all of the information you need to make the decision.
5. Be prepared to negotiate terms. Once you've put in an offer, it's not always accepted. The seller can make a counter-offer, to which you can accept or make another counter-offer. You want to be careful and not go back and forth too much. You want to meet in the middle somewhere, if you can.
6. Sign & date effective contract. Once the contract is agreed upon by both parties, sign and date the contract and then you will make an earnest money deposit, which is money that is put into escrow showing the seller a sign of good faith that you want the home.
7. Get the right mortgage for your situation. There are many different programs and types of mortgages out there, and they change. Be sure to ask questions to your lending specialist to get the mortgage that is right for you and your situation.
8. Order inspections & negotiate repairs. You can hire a professional home inspector and get this scheduled yourself, or you can choose to let your Realtor do it. I would recommend you letting your Realtor do it because they have used many inspectors and know which ones are good at their job.
9. Terminate or proceed with the contract. Once the inspection is done, you have 10-15 days (based on agreed upon contract) to terminate or proceed with the contract. A reason that someone might terminate the contract after the inspection is if the inspector found a major defect that would cost a lot of money or the buyer just didn't want to mess with fixing.
10. After final approval, go to closing to sign and own your new home! Be sure to talk with your lending specialist and Realtor to understand all of the costs involved with closing so that there are no surprises. Closing costs can include (but are not limited to) down payment, title fees, appraisal fees, loan fees, escrow fees. Once you sign the papers at the Title Company you are ready to move in!!
*Some up possible up front fees associated with buying a home may include (but not limited to)
Earnest money - usually $500-$1000
Inspection fees - $200-$300 (can be paid at closing for additional fee)
Termite Inspection fees - $80-$100 (can be paid at closing for additional fee)
Word of advice: use your Realtor even after the deal is done! They should have lists of reputable Movers, Contractors, Insurance Agents, ect. They are your resource for anything home related!
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