Buying a house is a big decision and an important one. As a first-time home buyer you should know what to expect to avoid becoming overwhelmed and confused by the process
Having a strong credit score puts you at advantage for lower interest rates
Check with your mortgage lender for pre-qualification. If you do not have a lender, ask your agent to refer you to one
A deposit, also known as an escrow or earnest deposit, is typically 1-3% of the purchase price, paid upfront to solidify your offer and show the seller you are serious
A real estate expert representing you will make the transaction a lot smoother and provide some peace of mind
A pre-qualification is a letter showing the amount of money a lender is willing to let you borrow to purchase the home. These are typically good for 90 days
Find an agent who specializes in your desired area
Find a home that is not only suitable for you but meets or exceeds your needs. For instance, the location, budget price, condition, and features
Take time to write down your must haves, wants, and don’t want prior to beginning. This will help you narrow your search and focus on the things that are most important to you
Determine a fair price and include any contingencies in the offer
After your offer is accepted, the next step is to schedule a home inspection. This will identify any defects with the home so that you are able to renegotiate the price, have the seller make the repairs or get credited for it
Hire a private closing attorney or use one provided by your lender
A purchase and sales agreement, also known as a p&s, is a legally binding contract written by attorneys to establish the terms and conditions of the transaction, and by which both the buyer and seller must agree upon. The contract outlines the requirements, limitations, contingencies, and price of the transaction. The purchase and sales signing is typically 10 days following the home inspection and is a very important date, so be sure not to miss it!
Apply for a mortgage. Be ready to submit documents regularly and timely, so as to meet the mortgage contingency deadline
The lender schedules an appraisal. The appraiser estimates the value of the home in comparison to recent sales in the area, market trends, public records, location, condition and amenities
These range from basic to comprehensive and protects from damage and thief. Most lenders require insurance on the home before giving you a loan
Typically done a day or two before closing, allowing you to ensure all agreed-upon repairs have been completed. A walkthrough is also a good idea because it ensures you that the home is in the original state as when you first offered to purchase it
Congratulations for making it to the final step of the process! This is where you review your closing disclosures (CD) with your attorney, as it highlights the terms of the loan and provides a complete breakdown of closing costs, fees and charges.
Your lender will send the disclosure to you at least 3 days before closing so be sure to review it early
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