Fully consider why you want to buy, and examine your ability to do so. Some helpful questions to answer could be: What is the total annual income for my household? What are my monthly expenses? Could I cut any expenses out? How much debt, if any, do I still have? What do my savings look like at the moment?
You've decided to move forward in the process and you have a better idea of what you're able to purchase, now it's time to choose a lender. A lender will help you find a good mortgage rate, so it's important to shop around and talk to at least a few of them before choosing one that you would prefer to work with.
Once you have chosen a lender, you're beginning the pre-approval process! Here are some documents your lender will need to see to get you going:
Current pay stubs, usually for the last two months
W-2s or 1099s, usually for the last two years
Tax returns, usually for the last two years
Investments/brokerage firm statements
Net worth of business owned (if applicable)
Credit card statements
Alimony/child support payments (if applicable)
Sitting Down with a Realtor
With the Pre-Approval process underway, choosing a Real Estate agent now becomes very important. Because you will be working together for a little while, and especially on a huge financial journey, you deserve an agent who will continuously put you first. An agent who is focused, available, and passionate about your home search will help ease your worries and carry you along in the home buying process.
Once you've found an agent to collaborate with, talk with them about your desired terms of the contract such as: Offer price, Earnest money, Financing arrangements, Inclusions, Exclusions, Inspections, Closing timeline, and Offer expiration.
Shopping and Offer Process
Knowing your rights as a Buyer
As a home buyer, your Real Estate Purchase Agreement will typically include a clause allowing you to conduct. a professional inspection of the property. We recommend that you invest in this objective visual examination of the physical structure and systems as they appear and operate at the time of the inspection. A standard home inspection report usually covers:
Heating and air conditioning systems
Interior condition of walls, ceilings, flooring, windows and doors
Visible attic insulation and ventilation
State law requires sellers to provide buyers with a Residential Property Disclosure Statement. This report indicates any known material defects in the property that the seller is aware of (flooding problems, leaky roof, cracks in the foundation, faulty furnace, etc.).
A seller is not obligated to make repairs, so if you have signed a contract with them but find out about defects that they do not plan to fix, you may rescind the contract.
The final step in the buying process! You will meet with the title representative, the sellers, and the real estate agents to sign prepared documents and the deed to your NEW HOME! The title company will prepare a settlement statement that includes: Taxes and utilities, disbursement of funds to the seller, payment of closing costs, and transfer of property. Once you have signed all the documents, you are a homeowner.
After a long and tedious process, the most rewarding feeling is sitting on the couch in your new home. The fun part will be creating your perfect home layout, and relaxing in the new space.
No problem. Buying a home is a huge decision, we would be happy to provide what information we have about this current market so that you can make the decision that is right for you. Feel free to reach out when you're ready.