10 steps to help you make the home buying process as easy and stress free as possible.
Determine your readiness: Once you’ve decided that purchasing a home is a good option for your finances and your family, you’re ready to start the exciting process of house hunting. Your current financial decision will be a major factor in this decision. Factors that will determine your financial readiness include your current income, savings, fixed expenses, and your debts.
Become optimal mortgage candidates: Make sure your credit and finances are in great condition – pay off or pay down high balances on credit cards, car loans, etc. This will improve your debt to income ratio and help increase your credit score. It’s a good idea to find a mortgage broker or lender at this point that can assess your debts and income and help you understand which debts will be more beneficial to getting you approved when paid down.
Get a pre-approval letter: If you haven’t already, now is the time to find a mortgage broker or loan officer to guide you through the loan process. A good mortgage broker or loan officer is someone that makes you feel comfortable and has great communication. This will make the rest of the mortgage process as smooth and stress free as possible. When you know what is going on, you can feel more comfortable in the process. Part of that process is getting pre-approved. This lets a seller know that a loan officer has reviewed your finances and credit report and believes you qualify for a loan! It’s a testament to your buying power when you are ready to make an offer on a home.
Determine your budget: Your pre-approval letter will tell you how much the bank is willing to lend you, but how much you can really afford is up to you! The bank takes your fixed expenses into consideration when determining your pre-approval amount, but it’s up to you to determine
Find a real estate agent: Finding the right Real Estate Agent can make a world of a difference for your home buying experience! Make sure you find someone who is knowledgeable and communicates well! With access to the Multiple Listing Service and insight into the market, a Real Estate Agent can help you find the right home and facilitate the negotiating. We have a number of great Real Estate Agents that we work with and can recommend to help get you started.
Select your Property: Narrow down available properties based on what you really want in a home. Your agent will help you arrange viewings. Once you choose the right home for you and your family, it’s time to put in an offer.
Make an Offer: The current market condition, time of year and the length of time the home has been on the market can all affect your offer, not to mention your own budget. You can also negotiate for closing costs and necessary repairs. A good and knowledgeable Real Estate Agent is essential in determining a proper first offer.
Find an Attorney: You want to make sure that you have an attorney on your team who knows what they are doing and will make sure the only thing you have to worry about is moving in! At the Faiella Law Firm, we have years of experience in handling closings with all types of issues.
Inspect the Home: Once your offer is accepted, make sure to schedule a buyer’s home inspection. You can fall in love with a home for many reasons, like it size, an open floor plan, nice backyard entertainment space, the recently renovated kitchen, or the privacy. While the house may look to be in excellent shape, the home’s radiant exterior can hide real problems. Your professional home inspector will point out any real and expensive problems you should be aware of that can affect the value of your investment.
Close the Transaction: The closing is when all of your hard work pays off and everything comes together for you to walk out of there a new homeowner. On the closing date, your attorney will review with you all of your mortgage documents. It is important to choose an attorney that you are comfortable with and can really take the time to answer any of your questions. At the end, you’ll receive the keys to your new home.
If you’re buying a home or are simply looking to familiarize yourself with the process, the attorneys at The Faiella Law Firm are here to help. Do not hesitate to contact us.