Buying Real Estate

Buying real estate is an exciting process, but there are many important steps that are required for the transaction. We have prepared a list below for you to follow so that you can be best prepared.

Step 1: Start The Research

Start your preliminary research of areas that you are most interested in. Take note of the properties and price points that are currently out there in the market. This will give you an idea of what neighborhoods might be best for you to consider.

Step 2: Identify Your Comfortable Budget

Consider your comfortable budget, debt and amount of funds you have available for a down payment. A lender will still have to qualify you for a loan, but you should make this call based on your own level of comfort as well given your lifestyle.

Step 3: Get Prequalified

Before you begin looking for your next home you will need to explore how much you can spend. The best and only way to officially go about this is to get prequalified for a mortgage. To get prequalified, you will need to contact a mortgage broker and provide some of your personal information and details. Your lender will then notify you of how much you will be approved for which will dictate what price range of homes you can begin looking for. It is important to provide them with accurate information for the pre-approval as you will have to eventually follow up with supporting documents, credit reports, etc. to verify your financial status.

Step 4: Search for Properties and Make an Offer

Once you start touring homes in your price range, make sure to take notes as you may see many homes. When you visit properties in different neighborhoods, consider things like convenience to local services of interest, your place of employment and other things that address your lifestyle.

Once you find the home of choice, submit your offer with your prequalification letter.

Step 5: Home Inspection

A home inspection is a noteworthy milestone as it can check for signs of structural damage or items that may need repair. Offers are most often made contingent on a satisfactory home inspection to protect the buyer’s interest. Any negotiated items that shall be addressed by the seller can be confirmed before the closing at the walk-through.

Step 6: The Appraisal

Your lender will arrange for the home to have an appraisal performed. The appraiser will be from a 3rd party company that is not directly connected so there is no conflict of interest. The appraisal will solidify to all parties that the price you are paying is a fair price for the property.

Step 7: Complete the Paperwork

Your lender will arrange for a title company to review documents and ensure that the seller is the rightful owner of the house with no issue. In addition, you will need to complete your loan paperwork by providing them with supporting documents that prove your employment and financial status.

Step 8: The Closing

After your final walk-through of the home, you will move on to the closing which is typically at the attorney’s office. Here, you will sign all legal documents to complete the purchase including your loan paperwork. Once complete and the check is delivered to the seller, you are ready to move into your new home as a property owner!