STEPS TO BUYING A HOME

 Buying a home is a major undertaking. For most first time home buyers the learning curve for buying a home is a steep one.  These are some of the steps that will help you stay one step ahead of the game.

Your real estate agent and financial institution can help make this an easy process.

1. Get Pre-qualified for financing - Sitting down with a qualified mortgage professional before you start looking at homes can save the heartache you may suffer if you fall in love with a home that you cannot afford. A mortgage professional will help you understand your finances, give you a breakdown of your credit report, and help you determine what you can afford before you kick your search into high gear.

2. Pre-approval - Your mortgage professional can pre-approve the amount of loan you qualify for and provide you with a letter of commitment which can prove to be an invaluable tool when negotiation the purchase price of your home.

3. Realtor interview - A real estate agent is an invaluable tool in helping you find the right home that meets your specifications and price range.  Look for someone who works with buyers and understands the community that you are looking to move into.

4. Shopping for your home - Finding the home that is right for you and your family requires patience. In a buyers market like we have today, you will have multiple homes vying for your attention.  If you are not careful, you can end up looking at 40 to 50 homes and not finding anything.  After a while every home starts blending together and you forget what was important to you when you started looking.  Your Real Estate Agent will help you sort through the plethora of homes and help you narrow your search based on your needs and wants.  Another tip when shopping for your home is to check out the school system, taxes, cost of utilities and the type of community services provided by the city your home is located in.

5. Purchase offer - Your real estate agent will assist in preparing the offer and present it to the seller. When writing the purchase offer be prepared to write out a check for your earnest money deposit. Earnest money will be explained by your agent and can be a strong negotiating tool.  After your offer has been written your agent will present it to the seller's agent who will present it to the seller.  The seller will either accept, reject or make a counter offer.

6. Loan approval - Once you have an accepted offer in place, there are many things to do.  You will first need to let your mortgage professional know that you have an accepted purchase agreement and start the process of loan approval.  The mortgage company will start the process of underwriting your loan.  They will order an appraisal of the home during this process.

7. Schedule Closing - You will also be asked to choose a closing/title company.  You can arrange for your own closing or have your real estate agent arrange the closing for you.

8. Home inspection - If you have selected to have a home inspection, your real estate agent will help you set up the appointment for that inspection.  You will want to be present at the inspection to ask questions and learn more about the home you are planning on purchasing.

9. Utilities - As you get closer to your closing date you will want to call the utility companies; water, gas, electric, and garbage, to transfer the billing to your name as of the date of closing.

10. Closing - Your closing agent will prepare the necessary documents required for closing such as title examination, payoff statements and deed. On the closing day you will sign all documents. The seller will be paid and you will receive the keys to your new home.