Buying a Residential
Buying a home requires a lot of time and effort, but these steps can help make the home buying process manageable and help you make the best decisions possible at right time.
– As soon as you can, start your research early, start reviewing real estate listings. Make a note of particular homes you are interested in and see how long they stay on the market. Also, note any changes in asking prices. This will give you a sense of the housing trends in specific areas.
– Determine how much you can afford. Lenders generally recommend that people look for homes with 45% income to debt ratio. What that means is that if the house-hold income is $10,000, the total expenses cannot be more than $4,500. This number subject to change based on various factors with the buyers income. But you should make this determination based on your own financial situation.
– Get pre-qualified for your mortgage, before you start looking for a home, you will need to know how much you can actually spend. The best way to do that is to get pre-qualified for a mortgage. To get pre-qualified, you just need to provide some financial information to your mortgage banker, such as your income and the amount of savings and investments you have. Your lender will review this information and tell you how much we can lend you. This will tell you the price range of the homes you should be looking at.
– Real estate agents are important partners when you’re buying or selling a home. Real estate agents can provide you with helpful information on homes and neighborhoods that isn’t easily accessible to the public. The agent representing the buyers will use real estate tools to come up with CMA (comparable market analysis) which will provide a market value of the subject property to make an informed decisions on the offer price. Their knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in can be extremely valuable. And best of all, it doesn’t cost you anything to use an agent – they’re compensated from the commission paid by the seller of the house.
– Look for a home and get personalized search alerts from a dedicated team of showing agents help you find and tour homes. Take as much time as you need to find the right home. Then work with your real estate agent to negotiate a fair offer based on the value of comparable homes in the same neighborhood. Once you and the seller have reached agreement on a price, the house will go into Under Contract status, which is the period of time it takes to complete due-diligence of the remaining steps in the home buying process.
– Typically, purchase offers are contingent on a home inspection of the property to check for signs of structural damage or things that may need fixing. Your real estate agent usually will help you arrange to have this inspection conducted within a few days of your offer being accepted by the seller. This contingency protects you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection reveals significant material damage. A detailed inspection report will be available on the home inspector’s findings. You can then decide if you want to ask the seller to fix anything on the property before closing the sale. Before the sale closes, you will have a walk-through of the house, which gives you the chance to confirm that any agreed-upon repairs have been made.
– Work with your mortgage banker to complete the loan process. Lenders have a wide range of competitively priced loan programs and a reputation for exceptional customer service. You will have many questions when you are purchasing a home, and having one of our experienced, responsive mortgage bankers assist you can make the process much easier. Every home buyer has their own priorities when choosing a mortgage. Some are interested in keeping their monthly payments as low as possible. Others are interested in making sure that their monthly payments never increase. And still others pick a loan based on the knowledge they will be moving again in just a few years.
– Lenders will arrange for an appraiser to provide an independent estimate of the value of the house you are buying. The appraiser is a member of a third party company and is not directly associated with the lender. The appraisal will let all the parties involved know that you are paying a fair price for the home. This is the good measure for the value of the property, if the appraised value is less than the offer price, buyers will have an additional chance to renegotiate or walk away from the deal with out any penalty.
– As you can imagine, there is a lot of paperwork involved in buying a house. A title company will handle all of the paperwork and make sure that the seller is the rightful owner of the house you are buying and provide a title insurance for both sellers, and lender side policy.
– Finally, at closing, you will sign all of the paperwork required to complete the purchase, including your loan documents. Once the funding is completed from your lender, and funds delivered to the seller, you will get the keys to the property. You are now ready to move into your new home!