Here is the process of buying a house. Please let me know if you have any questions at all about the process.
Home Buying 101 Step by Step
Step #1 Credit Report and Score
Get your finances together and pull a credit report and score to make sure there are no errors on your credit report. Your credit score and credit history will have a very big impact on the loan terms and/or the ability to obtain a home loan
Step #2 – Setting a budget
Once you have your finances in order and have viewed the information on your credit report to make sure there are no inaccuracies, the next step will be setting a budget. Make sure it is an amount that you will be comfortable paying, as mortgages are long term commitments and have terms of at least 15 years and some have loan terms up to 30 years. Make sure you don’t over extend yourself and end up having to sell your dream home because you can’t afford it. Setting a budget will also help make you aren’t looking at homes that you can’t afford.
Step #3- Secure Financing
Once you have set a budget that you are comfortable with, you should find a lender and get preapproved for you loan. Securing your financing early on will help make you a smoother overall process.
Step #4 – Hire a Real Estate Agent
Once you have a budget set and have secured financing, it is now time to hire a real estate agent, if you are going to do so. Real estate agents can help find homes that you are looking for as well as schedule private property viewings.
Step #5 – Start Looking at Properties
You are now ready to start looking at properties. If you hired a real estate agent, they will be able to print you a list of homes that meet your criteria of what you want in a home and then schedule a private showing of the property. If you did not hire a real estate agent, you are ready to start looking in real estate magazines or newspapers to find the houses that you are interested in. You will have to call prospective homes to schedule a viewing. A good place to start is going to Open Houses.
Step #6 – Make an Offer
You have found the home that you love and are ready to make an offer on the property. Here is were your real estate agent will come in very handy. Their knowledge and research of the housing market can help you decide on a fair price. Ultimately, the price that you are willing to pay comes down to you and what you feel the property is worth. A real estate agent will also be able to help get your terms and any contingencies that you will want to attach to your submitted offer.
Step #7 – Perform Home Inspection
Now that you have found a home that you absolutely love, it is time to make sure the property isn’t hiding a bunch of problems. By having a home inspection, you will be able to make sure that there aren’t a bunch of issues that the home may be hiding and with a good inspection, you will know exactly what you are buying. It is an important step because once you sign papers at closing on the house, any problems that the house might have, become your responsibility.
Step #8 – Close on your Property
You have made an offer that was accepted and had a home inspection done and now it is time to enter into the final phase – The Closing. Just prior to closing, you will want to do a final walk-through with your agent to make sure any and all of the contingencies were taken care of. You will also need to make sure that you have gone over the settlement statement. You will need to take certified funds for the closing costs as well as proof of insurance to closing. Closing usually takes about an hour and you will sign so many forms it will seem like you are signing your life away.
Step #9 – Moving In
After you get done with the closing, you will be given the house keys and the house is yours. Congratulations you made it through the process, give yourself a pat on the back. You deserve it!