7 Most Important Steps To Home Buying Process

It is never easy buying a home especially if it is your first time. First thing you need to do before starting your home buying process is to discern whether purchasing a home is the right choice for you.

The following steps will guide you through the process of buying a home:

Step 1:  Get A Credit Assessment Report Before Applying For A Loan

Before thinking of getting any financing for your home purchase, always check your credit score. You are allowed by law to get a free copy of your credit report per year. Normally, the higher your score the higher your chance of getting qualified for a loan. Discuss any errors on your report if there are any to better improve your score.

Step 2: Estimate Your Mortgage Capability

Take advantage of several online mortgage calculators that will help you compute the monthly mortgage payment that is within your means. Take into account all the costs involving down payment, closing fees, appraisal fees, inspection, etc. Get expert advice from a home loan expert or experienced real estate agent to assist you with all your home loan opportunities.

Step 3: Locate the Right Lender and Real Estate Agent

Search out for the right mortgage lender by asking for referrals and recommendations from your friends and family. Discuss all your concerns and make sure to find someone you are at ease with.  After locating the suitable mortgage lender, get a pre-approval to gauge how much loan you can qualify for. Your other option would be to get an actual approval before buying a home. This will somehow make the sale go much faster, if and when you are ready to make your offer.

Step 4: Do Your Home Shopping

Now you may begin your home search. Make a list of all the things you need like number of bedrooms, bathrooms, kitchen space, etc.  Look around the neighborhood, nearest schools in the area, local stores, your travel time to and from work, security risks and such.

Step 5: Make an Offer

After you have decided on the home you want, it is now time for you to make an offer. Get a CMA (Comparative Market Analysis) from your real estate agent to compare homes that have recently been sold in the area. Since most sellers price their homes somewhat high, you can ask for a fair amount of discount.  Once you have settled on the price, you need to make a deposit which will go into escrow to give the seller a sign of good faith.

Step 6: Get the Right Mortgage

As there are various types of mortgage programs, being a first-time home buyer, you should be aware of the three basics: adjustable rate, fixed rate and interest-only. Consult with your mortgage lender as to which is the best financing for you and your condition.

Step 7: Do a Closing

Make sure you get a home inspection before you close. It will be well-worth the money spent since it ensures the property's structural soundness and good condition.  Discuss with your mortgage banker regarding all the fees involved with closing. These may include your down payment, title fees, appraisal fees, attorney fees, inspection fees, and points you may have bought to buy down your interest rate.

Step 8: Move In!

Finally, after so much excitement, stress and anxiety, you are now ready to move in to your new home. You are finally done with the home buying process!  It is now time to come up with your plan of turning your empty house into an inviting home.