Want to buy a home but don’t know where to start?
If you want to buy a home but don’t know where to start, here are the first steps and what you should do:
- Pre-qualify – to find out how much home you can afford. The persons that will help you determine how much you can afford would be a mortgage broker or a bank. They will pull your credit report, ask you what your monthly bills are, and write up a pre-qualify letter for you. If you need help cleaning up your credit, they can tell you what would be the best way to do that as well.
- Find a Realtor – now that you know how much home you can afford, ask your friends and neighbors to recommend a Realtor. Meet with the Realtor to see if you like their style and want to work with them. You will be spending time with them and making one of the biggest purchases of your life and it is important to trust them. (I would love to help!)
- Do some research to see what neighborhoods you like and what type of style you are looking for to aid the Realtor in finding you that perfect home for you.
- Make a list of what your must haves vs your wants are in a home. For example, the home must have a two car garage vs a home theater room. These will have save time and the Realtor will be able to show you what you are interested in.
- Loan Process – now that you’ve found that perfect home or the perfect builder to build your home, the loan process starts. The purchase contract that the Realtor wrote up for you needs to be given to the lender once all of the signatures are obtained. The lender will send your contract and financial information to their underwriters. This process can take up to 30 days. Do not open any new credit card accounts or make any big purchases during this time. They will negatively affect your credit and may cause you to not qualify for the home. The bank or lender will order an appraisal on the home to make sure that the home is worth what you have offered to pay.
- Title Company – While the lender is processing the paperwork on the financial end, the Title company researches the past ownership of the property, both the land and the home, to make sure that no one has placed a lien on the property so that you can own it free of any issues or encumbrances. They prepare the transfer of ownership paperwork from the seller to the buyer.
- Recording of the Deed – Once all of the financial approvals and Title paperwork are completed and signed by all parties, the Title company sends the deed paperwork to the county recorders office. After the deed is recorded, you are now on the legal title for the home and are responsible to your lender for payments on the money that they loaned you to purchase the home.
- Now you can build many happy memories!!