The first step in home buying is to find a lender. Your primary source for finding a mortgage loan is your local bank or credit union. Although these lenders generally will require more paperwork than lenders you find online, they are usually more reputable and are likely to be able to provide you with better loan deals. Another option is to use a mortgage broker, who will find you good mortgage offers and then negotiate the best deal for you based on your financial needs and financial capacity.
The second step in home buying is to get pre-qualified (or pre-approved) for your loan. This means that you have met all the lending criteria set forth by the lender, including your credit score and income information. Once you meet these criteria, the banks and brokers will supply you with offers from various lenders. It is important that you compare loan offers from several lenders, as interest rates and payments can vary greatly between lenders.
The third step in the process is to submit a request for pre-approval to the lender. This allows you to have your application fully examined by the lender and ensure that the loan is in your best interest. Most lenders offer online applications; this makes it incredibly easy to complete the entire process in a few short minutes. The lender will send you a response to your request, which you should follow up with another call if necessary.
Step four of the home buying process is to set up appointments with local real estate agents. During your first visit to the real estate agent, ask them for their opinion on the home purchase price range. Most agents will give you a general price range, but do not allow for you to be pressured into purchasing a specific price range. In the event the real estate agent determines that you are indeed in the market for a home, they may suggest a home inspection. Although not required, having an inspection done will provide you with invaluable information regarding any problems that may be present with the property.
Step five of the home buying process is to contact your financial institution and obtain pre-approval for your loan. Once you are approved, your next step is to pay down any outstanding debt that is left on your credit cards or other financial obligations. As previously mentioned, the real estate agent's fee is not included in the monthly payment amount. You will also need to come up with at least a third of the total loan amount (including the closing costs) to come up with the remaining balance on your mortgage. Your final step in the process is to find a lender that will approve your loan application. Many first time homebuyers are overwhelmed by this point, but there are many resources available on the Internet that can assist you in narrowing down your options to just two or three potential lenders.
Step five of the home buying process is to conduct a thorough home inspection, paying particular attention to any issues that you were not able to detect during the initial investigation. If a problem is found, it is necessary to make repairs or try to make the problem go away prior to submitting the final financing bid. Having a real estate agent present during the inspection will help you stay focused as you deal with these problems. It is suggested, however, that you have the real estate agent submit one offer on your behalf; this will eliminate any possibility that you have agreed upon a price that is too high or that you did not actually find a problem with the home.
Step six in the home buying process involves an escrow deposit. This is an amount of money held by the buyer until all of the required closing costs and any final repairs have been made. Buyers who do not close properly can often fall into trouble with lenders where the escrow deposit is held as a partial refund of the loan. Home buyers who use escrow payments properly can also avoid making unexpected payments that can result in the loss of their homes to lenders.
Comments
Post a Comment