In 2020 the number of homeowners in America grew by an astronomical 2.1 million. If you are one of those millions who are getting swept up in the real estate frenzy, you may have found that the process is stressful and downright intimidating.
However, less stress is possible with the right tools. Keep reading to learn the pillars of home buying steps so that you can be a confident buyer in the process.
Step One: Assess Your Situation and Budget
When buying a house, whether on your own or with a partner, be prepared for your bank to take a hard look at your finances. But first, you should determine your own readiness. Ask yourself; how likely you are to stay in one place for a long time and whether or not you see your financial situation changing.
Keep in mind most traditional mortgage lenders look for a minimum credit score of 620. However, someone with a score in the 720 range will receive the best rates and will pay less for their loan over time.
Step Two: Get Preapproved
Once you’ve figured out your home buying budget, it’s time to take that data to the bank. A preapproval letter shows sellers that you are serious and have the funds to match. This is because the preapproval process uses your recent paychecks, tax returns, and a credit check to determine your loan approval.
Note; a preapproval is not the same as a pre-qualification, which is less rigorous and thus less impactful on your home buying process.
Step Three: Start Your Search and Make an Offer
Using popular real estate websites like this one, househuntersofgreenbay, can make the search one of the easiest home buying steps. And for the best overall experience, you should also work with a real estate agent. Their expertise will prove invaluable during the ups and downs of every deal, so find one that you trust.
Finally, after finding your dream home from all the lovely homes for sale in your budget, you will prepare and submit an offer.
Step Four: Your Many Contractual Obligations
This is when the process starts moving fast. On your end, you are working towards the goal of a completed contract. So when your offer is accepted, it’s time to schedule an inspection. Your inspection will guide your decision to purchase this home, and you may even find yourself with the ammo to ask for credits.
Then, you’ll pay a deposit, which allows the seller to sign your contract, bringing you to the completed purchase agreement phase.
At this point, your bank will reaffirm your approval and conduct its own appraisal to ensure that the home is worth your offer amount. If the appraisal comes in for less, you can either try to renegotiate with the seller, come up with the difference yourself, or, in some cases, you can appeal their decision with an independent appraiser.
The Last of the Home Buying Steps: It’s Closing Time
Once you set a closing date, you will conduct a final walkthrough to ensure that the home is in the same state and the seller made the necessary repairs (if that was part of your deal.) Then, on the closing day, if your financial situation hasn’t changed, and there are no errors in your paperwork, this will be a smooth, albeit, boring part of these home buying steps.
Now that you’re planning a move, you may be in search of some moving tips. To start, begin to pare down your belongings and organize your things early on in the contractual process so that packing is a breeze when the time comes.
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