Thinking about buying a home can be both exciting and scary, but it doesn’t have to be stressful. I can help you navigate the waters of buying a home with just eight easy steps!
Step 1: Save for a Down Payment
Of course, you’ll want to start looking at homes right away – that’s the exciting part! First, though, you have to figure out how much you can afford. Buying a house you can’t afford is a costly mistake. Try to pay off debt where you can and save for at least three months of expenses. If anything major happens like an emergency repair, it could hurt your savings if you’re not prepared.
Step 2: Get Preapproved
A lender can prequalify you with a quick phone call if you can provide some basic information such as assets, debt, information about your income, etc. Getting preapproved, however, is more involved. Your finances will need to be verified and your application will go through preliminary underwriting.
Going the extra mile with this step can boost your offer and show you are committed to buying a home! I can provide a list of local lenders to help you get started.
Step 3: Find a Buyer’s Agent (Call me!)
The Internet has made a lot of things much easier, including searching for homes. When it comes to viewing and offers, however, it’s time for a professional. A buyer’s agent can get you into the home to view it and guide you through the home buying process and advise and negotiate with your best interest in mind. The best part? The seller pays your real estate agent’s fees, so using a buyer’s agent is free to you! YAY!
Step 4: Start House Hunting
So, you’ve been preapproved and have a great agent – now it’s time to find the perfect home! Don’t know where to begin? Start making a list of your must-have features such as location, bedrooms, a pool, etc. These preferences may change or be revised once you start to see what is available.
If possible, look past the cosmetics. Paint, appliances, flooring, etc. can be changed and shouldn’t turn you away from an otherwise great home.
Step 5: Make Your Offer
Did you find “the one?” Great! Now it’s time to submit an offer to the sellers. Your offer includes the details such as purchase price, down payment amount, earnest money deposit, items left with the home, contingencies like the home inspection, appraisal and final mortgage approval, and the closing date.
Agreeing on terms can either be fast and easy or very challenging. Sometimes you may have to compromise on little details to seal the deal. Once you come to an agreement, you will be under contract and the countdown to closing will begin!
Step 6: Home Inspections
I highly recommend a professional home inspection, which you have a right to as a buyer. If the inspection reveals major problems with the home, you can ask the seller to fix the problem, reduce the price and accept the home as it comes, or cancel the contract altogether. I also know lots of home inspectors who can do a great job for you!
Step 7: Appraisal and Loan Approval
Your lender will require an appraisal to evaluate the property value if you take out a mortgage for any part of the sale price. This will protect you from paying too much and the mortgage company from lending more than the home’s market value.
I’ve said it before, but it is always worth repeating – don’t open a credit card, take on more debt, or change jobs once you’re under contract. Changes to your financial situation can jeopardize your loan process!
Step 8: Close on your House!
You did it! Finally, it is time to close on your new place! Before you can get the keys to your new home and call it your own, you’ve got one more thing to take care of – paperwork.
You should receive a copy of your closing documents to review so there aren’t any surprises on closing day. If anything is confusing on your paperwork that you don’t understand, don’t be shy about asking questions!
Once you sign all the paperwork, you’re officially a homeowner! Congratulations! The home buying process may not be a walk in the park but having a home to call your own is all worth it in the end.
Don’t forget to keep all closing documents, including the deed and survey in a safe place for future reference!
If you have any more questions or need any assistance buying or selling, let me know and we can schedule a call or meeting. I am here to help you in any way I can!
Contact me and we can work something out!
Diane Waschenko
(914) 447-5847