The process of buying a home can feel complicated and confusing. With so many different steps to take, and so many factors to consider, this daunting process can take longer than expected. For you, a first-time house-buyer, success can be achieved by following House of Hope’s easy to follow breakdown of the house buying process.
Before you look at houses, you must first evaluate your income, savings, debts, and credit score to gain a proper understanding of how much of a loan you can afford. Finance experts typically recommend not paying more than 30% towards your monthly payment. You can use House of Hope's favorite mortgage calculator to find a price range that is right for you.
Mortgage pre-approval is the process of determining how much money you can borrow from a lender to buy a home. This is where credit scores, income, and assets will be evaluated.
Real estate agents will guide you through every step of the house buying process! Find someone you trust who has the appropriate accreditations. These experts guides will help you with forms, reports, disclosures, and any other legal or financial documents that are necessary in the house buying process. They will ensure that you are following all local regulations and practices.
This is the fun part! This step of the home buying process considers your home wish list. Here, it is important to think about what you want out of your future home. Do you need a large backyard? Or are you looking for a fixer upper? Your real estate agent will show you properties that are a close fit to your wish list, within your desired price range.
Once you find a house that you’re wanting to put an offer on, your real estate agent will assist in making a competitive and well-informed offer on your future property. The negotiation aspect of the house buying process involves the price, closing date, and any other contingencies with the seller.
A home inspection is necessary and identifies any potential issues with the property. The results can be used in negotiations and could result in repairs or an adjustment of the offer. This step of the home buying process could present any safety concerns that might result in the purchase not going through as well. If any issues are discovered that result in huge safety or protection concerns, insurance could refuse to pay.
An appraisal ensures that the loan amount is appropriate for the property's value. This step is required by the lender.
This is the paperwork heavy step of the home buying process. At this point, you will need to agree to a loan term with your lender; this includes monthly payments and interest rates based off of your property appraisal. Be prepared to submit all documents and answer any questions from your lender. At this step it is necessary for you to acquire homeowner’s insurance and title insurance.
As the final step in the home buying process, you will need to sign all necessary paperwork to finalize the purchase of your new home! This also includes paying closing costs, such as attorney fees, property appraisals, and mortgage fees.
The long process of buying a house, from application of an offer to closing, can take a month or even longer. Once these steps are done, you will be ready to move into your dream home! We hope that this informative guide has better prepared you for your house buying process!
Start your process by using House of Hope’s favorite credit score resource!