Eight steps to buying a home
Decide to Buy:
There are many reasons for buying a home; however, an investment ranks among the top of the list. There are solid financial reasons to support your decision for buying a home. During the decision phase, base your decision to buy on facts, not fears.
- If you are paying rent, you very likely can afford to buy
- There is never a wrong time to buy the right home. All you need to do in the short run is find a good buy and make sure you have the financial ability to hold it for the long run
- The lack of a substantial down payment doesn’t prevent you from making your first home purchase
- A less-than-perfect credit score won’t necessarily stop you from buying a home
- The best way to get closer to buying your ultimate dream home is to buy your first home now
- Buying a home doesn’t have to be complicated – Blanca will help you along the way
Hire an Agent:
The typical real estate transaction involves dozens of separate individuals; mortgage broker and their staff, inspectors, appraiser, escrow officers, buyer’s agents, and a seller’s agents. It is the responsibility of your real estate agent to expertly coordinate all the professionals involved in your home purchase and to act as the advocate for you and your interests throughout.
Here are a few questions you should ask your potential agent:
- Why did you become a real estate agent?
- Why should I work with you?
- What do you do better than other real estate agents?
- What process will you use to help me find the right home for my particular wants and needs?
- What are the most common things that go wrong in a transaction and how would you handle them?
- What are some mistakes that you think people make when buying their first home?
- What other professionals do you suggest we work with and what are their credentials?
- Can you provide me with references or testimonials from past clients?
You may find the thought of home ownership thrilling; however, many first-time buyers start out confused about the process or nervous about making such a large financial commitment.
From start to finish, you will follow a six-step, easy-to-understand process to securing the financing for your first home when buying a home.
Six steps to Financing a Home
- Choose a loan officer (or mortgage specialist).
- Make a loan application and get preapproved.
- Determine what you want to pay and select a loan option.
- Submit to the lender an accepted purchase offer contract.
- Get an appraisal and title commitment.
- Obtain funding at closing.
Find your home:
You may think that shopping for homes starts with jumping in the car and driving all over town. However, looking for your home begins with carefully assessing your values, wants, and needs, both for the short and long terms.
Questions to ask yourself when buying a home
- What do I want my home to be close to?
- How much space do I need and why?
- Which is more critical: location or size?
- Would I be interested in a fixer-upper?
- How important is home value appreciation?
- Is neighborhood stability and priority?
- Would I be interested in a condo?
- Would I be interested in new home construction?
- What features and amenities do I want? Which do I really need?
Make an offer:
Now that you’re writing an offer, you need to be a businessperson. You need to approach this process with a cool head and a realistic perspective of your market. The three basic components of an offer are price, terms, and contingencies.
- Price-the right price to offer must fairly reflect the true market value of the home you want to buy. Blanca’s market research will guide this decision when buying a home.
- Terms-the other financial and timing factors that will be included in the offer.
Perform due diligence:
Unlike most major purchases, once you’re buying a home, you can’t return it if something breaks or doesn’t quite work like it’s supposed to. That’s why home owner’s insurance and property inspections are so important.
A home owner’s insurance policy protects you in two ways:
- Against loss or damage to the property itself
- liability in case someone sustains an injury while on your property
The property inspection show expose the secret issues a home might hide so you know exactly what you’re getting into before you sign your closing papers.
- Your major concern is structural damage.
- Don’t sweat the small stuff. Things that are easily fixed can be overlooked.
- If you have a big problem show up in your inspection report, you should bring in a specialist. If the worst-case scenario turns out to be true, you might want to walk away from the purchase.
The final stage of the home buying process is the lender’s confirmation of the home’s value and legal statue, and your continued credit-worthiness. This entails a survey, appraisal, title search, and a final check of your credit and finance. Blanca will keep you posted on how each if progressing, but your work is pretty much done.
You just have a few pre-closing responsibilities:
- Stay in control of your finances.
- Return all phone calls and paperwork promptly.
- Communicate with Blanca at least once a week.
- Several days before closing, confirm with Blanca that all your documentation is in place and in order.
- Obtain certified funds for closing.
- Conduct a final walk-through.
On closing day, with the guidance of a settlement agent and Blanca, you’ll sign documents that do the following:
- Finalize your mortgage.
- Pay the seller.
- Pay your closing costs.
- Transfer the title from the seller to you.
- Make arrangements to legally record the transaction as a public record.
As long as you have clear expectations and follow directions, closing should be a momentous conclusion to your home-searching process and commencement of your home-owning experience.
Protect your investment:
Throughout the course of your home-buying experience, you’ve probably spent a lot of time with Blanca and you’ve gotten to know each other fairly well. There’s no reason to throw all that trust and rapport out the window just because the deal has closed. In fact, Blanca wants you to keep in touch.
Even after you close on your house, Blanca can still help you:
- Find contractors to help with home maintenance or remodeling.
- Help your friends find homes.
- Keep track of your home’s current market value.
Attention to your home’s maintenance needs is essential to protecting the long-term value of your investment.
Home maintenance falls into two categories:
- Keeping it clean: Perform routine maintenance on your home’s systems, depending on their age and style.
- Keeping an eye on it: Watch for signs of leaks, damage, and wear. Fixing small problems early can save you big money later.