There are multiple steps involved in the process when purchasing real estate. I have compiled a list of tips for you below to help you get you started. Feel free to reach out to me at any time with any questions.
Step 1: Begin The Research
Begin researching the areas that you are most interested in moving to. Make sure to make note of the prices that are currently in the market to see what fits best for your budget. This will give you an idea of what neighborhoods might be best suited for you to actively search.
Step 2: Define Your Budget
Define your budget including the amount of debt and amount of liquid funds that you have available for a down payment. A lender will need to qualify you for a loan, but you should make this assessment based on your own level of comfort as well.
Step 3: Get Prequalified
Before you start looking at properties, you will need to figure out how much you can spend by getting prequalified for a home loan. To get prequalified, you will need to contact a mortgage lender and provide some of your personal information. Your lender will tell you how much you are approved for which will dictate the homes that you will search for. It is essential that you provide them with accurate data 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: Searching for Homes and Making an Offer
When you are viewing homes in your price range, be sure that you take notes as there can be many houses. When looking at different areas, consider things like proximity to local services, your job and other things that cater to your lifestyle.
Once you find the home that fits your needs, then submit your offer with your preapproval letter.
Step 5: Schedule a Home Inspection
A home inspection is a smart idea as it checks for any structural issues or items that may need repair. Offers are typically made contingent of a satisfactory home inspection to protect the buyer’s interest.
Step 6: Home Appraisal
Your mortgage lender will schedule an appraisal of the home. The appraisal will verify that the price you are paying is a fair price for the property.
Step 7: Complete the Necessary Paperwork
Your lender will have a title company review documents to confirm that the seller is the rightful owner of the house. At this time you will need to complete your loan package by providing any back up documents that confirm your employment and finances.
Step 8: The Closing
Once your final walk-through of the property has been completed, you will then move on to the closing. At the closing you will sign all documents to complete the purchase including loan paperwork. Once the check is delivered to the seller, the home is yours and you can begin moving in.