Becoming a Home Owner is one of the many greatest accomplishments we can make in our lives. However, the process to home buying is not all that simple, and not something I recommend doing yourself. For starters, surround yourself with professionals. Lucky for you, we already have a great in-house TEAM of professionals ready to assist you! [Click the links below for contact info.]
Build Yourself a TEAM!
A REALTOR®: will help you find the home of your dreams.
A Mortgage Broker: will help you obtain your loan.
A Real Estate Attorney: is always good to have involved (just in case).
A Contractor (if looking to renovate/repair): can give you quotes for renovation or repairs.
These professionals will guide you through the 5 Main Steps to Home Buying.
1. Give your finances a Checkup
It is important to know the status of your credit. Get your credit report and make sure it is accurate. Dispute anything that shouldn’t be there. For example: a satisfied line of credit that should be closed but still shows as an owed debt.
Make sure you are paying all your bills ON TIME. This is very important because all late/missed payments are reported against your credit. This results in a lower score and another reported item on your report.
Finally, don’t make any drastic changes in the weeks to come during your home search. Keep your employment steady, keep your credit afloat, and don’t apply for anything other than your home loan.
2. Find out your true Purchase Budget
You already know what you can afford in terms of a monthly payment. However, you need to know what you can afford in terms of getting a loan to purchase a home. Our in-house Mortgage Broker with Caliber Home Loans can help you determine what loan amount you qualify for. Once your application has been processed, he will provide you with a pre-approval letter. Your REALTOR® will need this letter in order to submit offers.
NOTE: Type of Financing Matters! There are many types of loans available to home buyers: Conventional Loans, VA Loans, FHA Loans, Renovation Loans, etc.… Choosing the right program for you is important, and keep in mind there are limitations within each.
3. Home Search!
Find a Realtor you trust (any one of our YES Agents will do)! Your realtor will help you narrow down your search according to your loan and your needs. It is important to keep an open mind and look around in different areas/neighborhoods. Today’s market is still very competitive! Also keep in mind, the shopping process can take weeks or months long until you find the right home for you. Patience is a virtue!
4. Offer Accepted!
Once you find the right home, your realtor will submit an offer to the seller’s agent. When you get an offer accepted, you then have to apply for the actual mortgage loan! Remember the pre-approval letter you got at the beginning? Yeah, that was just an estimated guess and now that you found your home you must apply for the actual loan based on the property itself. This process can take anywhere between 21-45 days. I’m sorry, I know it sounds like a long process but it goes by quickly if you stay focused on decorations and what furniture you want for your new place!
Speaking of furniture, DO NOT FINANCE any furniture or cars or anything at all during this process before Closing! Very important. Any new debt will increase your risk of default while decreasing what you can afford, and your loan application will have to be processed once again.
5. Close the Deal
Your TEAM of Professionals will guide you through the contractual steps before closing which include inspections, appraisal and title. Did I mention we also have an in-house title agent? NU World Title goes above and beyond to make the transaction as smooth as possible with their up-to-date technology and open communication! [YES, we’re pretty awesome!]
Don’t avoid your walk-through inspections before closing. This is basically just you and your realtor observing every little corner of the home, appliances, faucets, etc. to make sure it is all in working order just as it was the day of showing. This is just as important as any other step in the process.
If all is good-to-go, get your utilities set up for the day of closing and CONGRATS- You bought a home!
If you have any questions, please do not hesitate to contact us about the process of buying your home.
Our TEAM is ready to assist You!
By: Myrissa Leon