Buying a new home can seem overwhelming, but knowing what to expect, along with having a knowledgeable team of a real estate and mortgage-lending professional to assist you, can help make finding and financing your home an exciting and rewarding experience. You might feel overwhelmed starting this process, but in this post, I’ll share some information to help get you started. Below is a basic overview of the home buying process:
Obtain a mortgage preliminary approval before you begin house hunting.
First, you should use a mortgage calculator to determine how much home you can purchase. Once you determine how much you can afford, you should should contact a mortgage lending professional to obtain a preliminary mortgage approval letter. This letter will strengthen your bargaining position with sellers.
Work with me to find the right home.
To find the right home, you need to determine your needs and create a wish list of desirable features. We will sit down and discuss this wish list, so I can find available homes on the market that fit your needs. Also, it’s very helpful to take notes as you preview home. Use this link to print out a great checklist to help you keep track of the homes you see.
Make a purchase offer on a home you like.
Once you find the perfect home, you will need to make an offer. I will present your offer to the seller’s agent who, in turn, will present the offer to the home owner. At this point, the seller will choose to accept, counter or reject the offer. When the price is settled, you and the seller sign a Purchase Agreement, defining the terms of the sale.
Complete the loan application process.
Once you have a purchase agreement for a home, you will need to complete the loan application process. If you have already obtained a mortgage preliminary approval, contact your lender and let him/her know you have a contract on a home. Your mortgage consultant will update your loan application and help you to proceed with the home financing process.
Have the home inspected.
I always recommend having your potential new home inspected. You should hire a professional home inspector after the offer has been accepted, but before the sale is finalized. The home inspector will provide an in-depth look at the basic systems of the house, and can reveal safety hazards and give you a chance to reconsider the deal.
The home will be appraised.
Your mortgage lender will require that your potential new home is appraised to determine it’s value. An appraisal is a formal, written estimate of the home’s current market value. The lender needs to ensure you are not purchasing the home for more than it is worth. They will not approve a loan for a home that is over valued.
If applicable, obtain title insurance.
Title insurance guarantees the property you are purchasing is free of liens or confusion in rights of ownership. Title insurance also insures against any losses to the property that result from defects in the title or deed. Title insurance is typically provided and supported by the title company that handles the closing on your new home. I will support you in finding the right title company for your closing.
Close on the property.
A closing agent (or title company) coordinates and distributes all the paperwork and funds for the closing of the home. At the conclusion of the paperwork process, the ownership of the property is transferred — and you get the keys to your new home!
I am available to guide you every step of the way to help ensure your home buying process is a smooth one. Please contact me to discuss buying your new home.