2021 Guide
Purchasing a new home is exciting. However, buying a house requires a lot of time and effort. It can be stressful and overwhelming for a first-time homebuyer. And understandably so, it’s the largest purchase most people make in their lifetime. The good news is, you are not alone; it’s normal to feel this way.
Understanding the process and knowing what to expect is vital! The more information you have, the easier it is to make a sound decision. When an opportunity arises to purchase a home, you will be ready to make an offer. Here are the nine important steps to help you realize your goal and make your dream of owning a home a reality.
1. Get Pre-Qualified
Before you commence your home search, you’ll need to know how much you can afford. Getting pre-qualified by a mortgage broker lets you know the maximum amount you can borrow and adjust your home wish list accordingly to fit your budget. The amount you can borrow is calculated by taking into consideration your annual income, savings, debts, expected down payment, etc.
2. Choose A Real Estate Agent
Get a professional real estate agent to guide you through the entire purchase process. You do not have to worry about the cost as the buyer’s agent commission will be paid for by the seller. Agents are important as they have market insights, determine the offer price, have negotiating experience, local familiarity, and offer professional recommendations.
3. Find The Right Home
Start your home hunting process and visit homes within your budget in your target areas. When touring homes, keep a keen eye on structural defects, electrical issues, water pressure, door and window functionality and heat retention, exterior and roof quality, and noise and disturbances from traffic and neighbors.
4. Make An Offer
Once you settle on a specific home that fits your search criteria, use the comparative market analysis (CMA) provided to you by your real estate agent as the baseline to make an offer. The CMA determines the value of a home through comparison to recent sales in the locality.
5. Choose An Attorney
Hire an attorney to help you through all the legal aspects of a home purchase. You do not want any detail overlooked, no matter how minor it is.
6. Have The Home Inspected
Conduct an inspection on the home you are about to buy to ensure that the home does not have any major underlying issues. Your agent can recommend a licensed home inspector. Attend the inspection and, after that, discuss the official inspection report with your agent.
7. Obtain Mortgage Commitment or Conditional Approval
Working with a mortgage broker, they will submit the mortgage application to a lender to secure financing for the purchase, once underwriting reviews the loan application and is approved, they will release the mortgage commitment.
8. Appraise The Home
The lender will have an appraiser give an independent estimate of the home’s value. An independent third party, an appraiser, will provide appraisal reports that determine whether you are paying a fair price for the home. An appraisal that matches or is above your offer price gives you the green light to close. A low appraisal assessment means you are overpaying, and you’ll have to renegotiate with the seller or come up with the difference in cash.
9. Close On The Property
Sign all the paperwork that is required to complete a home purchase. Once the signing is complete, and the sale has been recorded, the deal is done, and you’ll receive the keys. To get a free pre-qualification today, call New Dwelling Mortgage via +1-844-317-3050