When it comes to renting, you’ve been there, done that. Now it’s time to buy. Explore the essential steps of the home buying process.
Guide to Home Ownership
1. Check your credit & prepare your finances
Lenders care about your credit, so you should too! Obtain your credit report and ensure the information is correct. It’s also a good idea to check your credit score. Consider paying down debt balances to improve your debt-to-income ratios.
2. Build a budget
Review your household finances and determine an affordable monthly mortgage payment. Use this amount to estimate an ideal home price range.
3. Get pre-approved for a mortgage
Find a lender and go through the pre-approval process. Knowing your pre-approval limit ensures you can make an offer confidently and increases your chances of securing your dream home. Consider a VA loan and compare your options.
4. Find a real estate professional
Seek guidance from a knowledgeable agent who can help you navigate the home buying process. Their experience and expertise will prove invaluable in making informed decisions.
5. Go shopping
Create a list of must-have features and evaluate potential properties.
6. Make an offer
Work with your agent to make a reasonable offer based on market conditions, home value, and comparable sales in the area. Be ready to negotiate everything from sales price to closing costs – and everything in between.
7. Coordinate home inspection & negotiate repairs
Hire a professional inspector to evaluate the property’s condition. The inspection report helps identify any issues that may require negotiation or repairs.
8. Have your home appraised
Appraise the property to ensure the purchase price aligns with its value. An accurate appraisal protects your investment and ensures you’re not overpaying.
9. Lock interest rate and loan term
Compare mortgage options and discuss rates, terms, and monthly payments with your lender. Choose the best fit for your financial situation.
10. Close on the home purchase
Provide necessary documentation to finalize the loan. With guidance from your lender, agent, and title company, navigate the closing process and transition into homeownership.