Whether you’re a first-time homebuyer or a seasoned veteran, we understand that it can be challenging to find a house you love and want to buy. When the time happens, it isn’t always solely up to you, as the seller has to accept your offer. From navigating the real estate market to securing a mortgage and closing the deal, each step of buying a home requires careful consideration. In this blog, we break down the home buying journey into 6 manageable steps. We will equip you with the knowledge you need to make informed decisions along the way.
Step 1
The first step of buying a home is to get pre-approved on an amount. With approval, you can set your budget and have a realistic expectation while house hunting. A pre-approval demonstrates to sellers that you are a serious buyer in a competitive market. This allows you to confidently make offers on homes knowing that you have the necessary financial backing.
Step 2
Consult with a real estate agent to start the house hunting process. Searching for homes that meet your criteria and fall within your budget can be a long process. Some people find the home they love immediately, while others look at 100 houses to find what they want. This journey can be discouraging, but rewarding when all the pieces fall into place.
Step 3
Once you find a house that you love, you’ll put in an offer. Offers typically include the purchase price, contingencies (such as an inspection), and any other additional terms and conditions. The seller may accept, reject, or negotiate a counter offer with you. When both parties are in agreement, contracts will be drawn up to be signed.
Step 4
Once the contract is signed, you will work with your lender again and complete the paperwork to finalize your mortgage application. During this process, your lender will ensure that you understand your financial obligations, interest rates, repayment schedule, and any additional fees associated with the loan.
Step 5
Next, it’s time to get your loan processed. Pay stubs, bank statements, W2s, etc. will all be needed for the underwriting process. During the underwriting process, which usually takes 30-40 days depending on the time of the year, the borrower’s financial information, creditworthiness, and the property being financed are all carefully evaluated. Underwriters verify the accuracy of the provided documents, review the borrower’s ability to repay the loan, and assess the overall risk associated with approving the loan.
Step 6
Congratulations! If you’re at the final step, that means the deal is closed and you have a new home. Make sure your insurance has been arranged and that you’ve completed the final walk-through to ensure that the property is in the agreed-upon condition. You’ll sign final documents, transfer utilities, gain the keys to your new home, and more.
Final Thoughts
Remember that this is a general overview, and the specific process for buying a home may vary depending on your location and the involved parties. As always, we advise you to consult with professionals while navigating the home buying process.
© Mortgage Specialists. 