If you are thinking of buying a home, you may not know where to start. Here is a simple list of 10 steps that you will go through to purchase a home. Make sure to ask your agent for details about each step and what else may be required in your area!
1. Save For Your Down Payment
Many people believe you need a 20% down payment to buy a home, but there are various low down payment loans available, such as a VA or USDA loans. So, do your research on which loans are best for you and start making your budget.
2. Know Your Credit Score
Your credit score is a number that simply represents your financial history and your ability to pay back debts in the past/present. Credit requirements can vary depending on the type of home loan you choose. So, learn your score and clean up any outstanding debts like student loans or credit cards.
*To get a copy of your free annual credit report, go to annualcreditreport.com.
3. Get Pre-Approved
Differentiate yourself as a serious buyer and have a better sense of what you can afford before you start to search for a home. The Family Mortgage Team offers a hassle-free program called the Certified HomeBuyer in which your credit is verified and approved, and the loan application is processed pre-underwritten upfront before you even sign a contract.
*See Also: 6 Steps to Obtaining a Pre-Approval
4. Find A Real Estate Agent
Find a local Buying Agent in your area; one that will help guide you through the process. If you’re not sure who are the best agents to work with, let us know and we can help connect you with the right one!
*See Also: Using A Realtor vs. Finding A Home On Your Own
5. Find A Home
Make a list of what you want vs. what you need in your new home. Your agent will use this list to find the best homes suited for you to tour.
6. Make An Offer
Your agent will help you determine the best price to offer for the home and will help you negotiate the contract. This is also when your Certified HomeBuyer Pre-Approval Letter does most of the heavy lifting to help you stand out.
*See Also: What To Offer On A Home
7. Get A Home Inspection
Once your offer is accepted, you will want to do a home inspection to make sure there aren’t any hidden issues with the home.
8. Get An Appraisal
Your lender should arrange for the home to be appraised to ensure the property is worth the price you agreed to pay for it. The bank will only issue the loan for the appraised value.
9. Close The Sale
Once your loan is approved, your lender will schedule a closing date. This is the day you sign all of your paperwork to complete your home purchase and get the keys to your new home!
*See Also: Getting Ready For Closing and Finalizing The Deal
10. Move In!
Congratulations! You are a new homeowner!