BUYER'S GUIDE
STEP 1 - DETERMINE YOUR BUDGET
The first step in the home buying process is understanding what you can afford. The best way to do this is by setting a realistic budget. Consider your monthly income, debt, savings, and monthly expenses. Typically, down payments range from 3% to 20% of the home’s price. The higher the down payment, the lower your monthly mortgage payment will be. Additionally, obtaining a mortgage pre-approval can give you a clearer picture of your budget. Don’t forget about closing costs, property taxes, homeowner’s insurance, and maintenance costs. These are essential real estate tips to keep in mind as you navigate the home buying process.
STEP 2 - PRE-APPROVAL
Before you start the home buying process, it’s crucial to get mortgage pre-approval. This step helps you understand how much you can borrow and shows sellers that you’re serious about your intentions. Be sure to research lenders and compare interest rates, fees, and loan terms as part of your real estate tips. Additionally, be prepared to provide proof of income, tax returns, credit history, and other financial documents. Your lender will issue a pre-approval letter, which will indicate the loan amount you're eligible for and will help you move quickly when you find a home you love.
STEP 3 - START YOUR HOME SEARCH
Now comes the fun part of the home buying process: finding your dream home! Work with a realtor to start browsing listings that meet your criteria. Utilize the home search tools available on our website to explore listings and get a feel for the market. Don’t forget to get your mortgage pre-approval, as it can streamline your home buying journey. Schedule appointments to see properties in person. A realtor can help you find homes that fit your needs, negotiate prices, and provide valuable real estate tips to guide you through the entire process.
STEP 4 - MAKE AN OFFER
Once you’ve navigated the home buying process and found the perfect home, it’s time to make an offer. Your realtor will assist you in creating a competitive offer based on the market, the home’s value, and comparable sales, ensuring it aligns with your mortgage pre-approval.
Offer Price: This should reflect your budget and the property’s value.
Contingencies: Common contingencies in the home buying process include home inspection, financing, and appraisal contingencies.
Earnest Money: This deposit, typically 1%–3% of the offer price, demonstrates your commitment to the purchase, a crucial step in the overall real estate tips.
STEP 4 - SCHEDULE A HOME INSPECTION
After your offer is accepted in the home buying process, it’s time to schedule a home inspection to assess the home’s condition. A licensed inspector will evaluate the home’s structure, plumbing, electrical, HVAC, and other key systems. If the inspection uncovers issues, you can either request repairs or renegotiate the offer price, which is an important real estate tip to consider. Ensuring you have mortgage pre-approval can also strengthen your position during this critical stage.
STEP 5 - SECURE YOUR FINANCING
With an accepted offer and a successful inspection, it’s time to finalize your mortgage as part of the home buying process. Work with your lender to lock in your interest rate and complete the necessary loan paperwork. As you navigate this stage, remember that mortgage pre-approval is a key step that can streamline your experience. Your lender will also order an appraisal to determine the home's market value. Be sure to carefully review all loan terms before signing the agreement to ensure you understand all aspects, a crucial tip in real estate.
STEP 6 - CLOSING
Closing is the final step in the home buying process where ownership of the property officially transfers to you.
Closing Disclosure: Review this document, which outlines your final loan terms, closing costs, and payments, a crucial aspect of securing mortgage pre-approval.
Final Walkthrough: Do a final inspection of the property before signing documents, an important tip in real estate to ensure everything is in order.
Sign the Documents: Sign the closing documents and receive the keys to your new home!
STEP 7 - MOVE IN
After the closing, it's time to move into your new home! Here are a few real estate tips to help you settle in smoothly: Set Up Utilities: Make sure electricity, water, gas, and internet are set up in your name. Change Address: Update your address with the post office, banks, and other essential services. Get Home Insurance: Protect your new home with homeowner’s insurance. These steps are crucial in the home buying process, especially after securing your mortgage pre-approval.