Looking for a home to fit your unique needs and lifestyle can be exhilarating but challenging. To help you get started, take a look at the following 6 steps towards closing on your new home:
STEP 1: CHECK YOUR CREDIT
A higher credit score will always help you qualify and obtain a better mortgage or loan. You can check your credit score by visiting annualcreditreport.com. It is also important to know that according to the law, every person is allowed to receive a free copy of their credit report per year!
STEP 2: FIGURE OUT THE PRICE RANGE OF PURCHASING A HOME
Start by looking online. There are several online mortgage calculators (see Finance section of the website) that you can utilize to calculate a monthly mortgage payment that is affordable. Also, don’t forget to include the costs your payments for closings, fees, property inspections and remodeling the home. After receiving a preliminary idea of your costs, it is time to seek for a loan expert.
STEP 3: FINDING THE PERFECT HOME
To find your perfect home, it is important to create a list of features that characterizes your home. Will this house have 2 bedrooms or 3? Will it be a condo or a single detached house? How big will the house be? In addition, you should research on the neighborhood you want to live in, the type of schools there are, the walking score and the safety ratings of the area.
STEP 4: LOOKING FOR THE RIGHT LENDER AND AGENT
To search for real estate and loan experts that are reliable, browse through the “Better Business Bureau” to ensure that these experts are still licensed and are still in business. It is recommended to talk to as many agents or lenders in order to find an expert that you are comfortable with and can trust on. After selecting the right lender, ask him/her your loan options and what type of loans you are qualified for. There are loans that are available that requires 0% down payment. It is important to note that pre approved buyers are preferred over pre-qualified, as it shows that you have gone through a thorough financial background check which will impress sellers.
STEP 5: MAKING AN OFFER FOR THE CHOSEN HOME
When making an offer, you should start 5% below the selling price. You should also request for a report from your Agent to show similar houses around the area to ensure that the selling price is somewhat similar and reasonable. The last thing you would want is to purchase your home that would be twice as much as the current market value.
STEP 6: CLOSING ON YOUR HOME
Before closing a home, make sure a home inspection is done to report that the property is in good condition. Also, make a list of the closing costs that will be included at the closing and this can be obtained from your lender or mortgage banker. After getting your mortgage and having the deal closed, it is now time to move in! Unpack and enjoy. However, if you have any questions, make sure to communicate with your Lender or Agent as they are your source of making home buying and moving in a smooth experience.