1. Get Your Finances in Order. Consult a lender to find out if you can be approved for a loan, the lender will base a decision on your credit profile, income, assets, job history and debt-to-income ratio.
2. Crunch Your Cash Numbers. To start the home buying process, you need to establish a pattern of fiscal responsibility and develop a budget—and you also need to figure out where you will get the cash you need to move from renter to owner.
3. Check Your Credit (and Repair if Needed) Many consumers are surprised by their credit score and many find errors on their credit reports. Carefully review your credit report and focus in particular on negative items to see if there are ways you can address them and improve your credit profile and your access to a mortgage.
4. Know Your Purchasing Power With a Pre-Approval. Consulting with a mortgage lender is the first step you should undertake in the home buying process. Almost all first-time buyers need a mortgage to finance their home purchase, so get prepared before you look. When you’re armed with the knowledge of what you can afford, it focuses your search and allows you to make a move when you find a home you love.
5. Understand Your Monthly Mortgage Payment If you make a down payment of less than 20%, your mortgage payment may also include mortgage insurance, a fee you pay that protects your lender in case you default on the loan. While there are sometimes exceptions to the rule, lenders generally require your house payment to be 31% or less than your gross monthly income. So when you are calculating how much you can afford to spend on a home, you should keep that figure in mind.
6. Learn About Your Loan Options When you need help understanding the various ways you can finance a home, your lender will be the best resource. But it’s still wise to have an overview of the types of home loans available and how they might fit in with your particular financial plan and your tolerance for risk.
7. Make a Fair Offer In many states, sellers must comply with certain disclosure, and a REALTOR® will ensure that they do, as well as answer any questions you may have during the sale. If you are not working with a REALTOR®, keep in mind that your purchase offer or contract must conform to state and local laws. State laws vary, and certain provisions may be required in your area.
8. Secure a Home Loan Once you’ve made an offer for a home and the sellers have accepted it, you may feel you can relax and just get ready to pack up and move. However, until you get to the settlement date and have the keys to your new home in hand, you will need to stay vigilant about finances and keep in close communication with your real estate agent, the title company and—most of all—your lender: your home loan may still need attention.
9. Get Insured No sensible car owner would drive without insurance, so it figures that no homeowner should be without insurance, either. The essential idea behind various forms of real estate insurance is to protect owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.
10. Enter Escrow Once your offer on a home has been accepted, your inspections are complete, and your financing is in order, you’ll likely breathe a sigh of relief and get focused on packing for the move. But before you’re handed the keys to your new home, you’ll need to attend the settlement or closing. The more you understand about the closing process, the easier it should be.
Source: www.realtor.com
Shauna Quick
Realtor
Exit Realty Success
www.shaunaqsellshomes.com
shaunaqsellshomes@gmail.com
801-550-4419
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