Buying a home can be a exciting and rewarding experience. In order to be sure that the experience is a postive one, it is important to be as informed as possible. Outlined below is a brief description of the home buying process. We always reccommend the professional services of a Realtor® to guide you through the process, and this tutorial is a step in the right direction. If you just need some tools to help you buy that first home, click one of the buttons to the left of the page to assist you.
1. Making a Decision to Buy
The decision to buy is an important first step. You may want to ask yourself some key questionsto help determine if you are ready to be a homeowner.
- Do I need the tax advantages?
- Can I afford a down payment?
- How long do I plan to live at my next home?
- Where do I want to live?
- What will my taxes be?
2. Choosing Professional Guidance
Using a real estate agent or broker will be key to your successful purchase. They are professionals that can take you through every step of the homebuying process and ensure that you are protected and well informed with the real estate transaction. In most cases, their services are FREE to buyers. If you would like help choosing an agent click HERE and you will be directed to a page that outlines what to look for in an agent.
3. Prepare for the Hunt
The best way to prepare to buy is to ensure that your finances are in order. This will strengthen your negotiating power later.
- Know how much home you can afford
- Know how much money you want to put down (if applicable)
- Get "Pre-Approved" with your favorite lender if a loan is needed
- Be prepared to give proof of funds if paying cash
4. Know the market
Knowing what homes are on the market and the features of these homes will help you make an educated offer when you find a one that is right for you. Using an experienced real estate agent in the area that you are looking will be key in this step.
5. Find the House
This will likely be a house that you will live in for several years and is a major investment. You should consider the following factors
- Location
- Price
- Condition
- Potential Re-Sale Factors
6. The Negotiation
Once you find a home that you want to purchase you will begin the negotiation process. You will negotiate all aspects of a rela estate contract such as priice closing date etc. There are 2 stages of the negotiating process outlined below (note: we recommend using a professional to assist with this step to ensure a succesful transaction)
- The Initial Negotiation (prior to completed inspections)
- The Re-Negotiation (After the completed inspections)
7. Complete the Loan Process
Now is the time that you will complete the loan process if you are using a loan to finance the purchase. All of the final loan details should be completed and your homeowner's (hazard) insurance policy should be prepared as well as Flood Insurance if applicable.
8. Close the Deal
Going to the closing at the title or escrow company is the last stage of the process. Be sure to bring proper identification and certified funds if needed made out to the title or escrow company. You will sign any applicable loan documents and the deed will be transferred into your name. Now the home is yours!
|
