Buying a home for the 1st time can be a confusing process, but these four steps can help simplify and outline the home buying process.
Step 1 - Get Pre-Approved For A Mortgage
The first step for any potential buyer is getting pre-approved for a mortgage, unless they're a cash buyer. Getting pre-approved lets a potential buyer know if they're able to buy and how much house they can afford. The reason it's the 1st and most important step is because a pre-approval separates a serious buyer from everyone else. Until a potential buyer is pre-approved for a mortgage, they aren't considered a ready, willing, & able buyer in the eyes of sellers. Buyers can get pre-approved within minutes online, just be sure to have the following documents on hand to complete the pre-approval process.
-Recent pay stubs for the last 30 days
-Last 2 years tax returns
-Recent Bank Statements
-Photo ID
It doesn't make sense to start your search for a home until you're pre-approved. Why fall in love with a house before knowing if you can afford it?
Step 2 - Choose A Realtor®
The next step is choosing the right real estate professional to assist in finding the right property. When choosing a Realtor®, its important to select someone who is knowledgeable and trustworthy. Buying a home is a big decision, so it's important to work with someone who is patient, understanding, and willing to help make the process smoother and easier to understand. A buyer shouldn't be afraid to ask questions, it's the Realtors® duty to ensure the client is well informed. Communication is key!
Once the buyer is pre-approved, and has chosen a Realtor®, they're ready to start actively searching for their new home.
Step 3 - Find The Right House
Every buyer is different, so there aren't any set guidelines for finding the right house. Finding the right house could happen with the first showing or it could take 6 months. However, it's very important for buyers to have an idea of what factors are most important in deciding on the right house or area, such as location, property type & amenities. Buying a house is a big decision and investment, so before making a 30 year commitment every buyer should have a professional home inspection completed to know what condition the property is in.
Now that the buyer has found the right house, it's time to get ready to close.
Step 4 - Prepare For Closing
What is closing? Simply put, it's the end of the sales transaction when possession of the property is transferred from the seller to the buyer and money transferred from buyer to seller. Before a buyer is ready to close there are a few things that need to be done. The buyer must meet all conditions their lender requires in order to receive final mortgage approval, such as appraisal, any required repairs, & submitting financial documents. Once all conditions are met, the buyer is almost ready close. The last step prior to closing is doing a final walk-through of the property to ensure the property is vacant and still in the same condition, with the exception of any agreed upon repairs.
If the buyer's mortgage is approved, and the final walk-through is satisfactory, the buyer is now ready to close.
No two real estate transactions are alike, there are many different variables that can effect the course and outcome of a transaction, but these 4 steps are like a blueprint of how the home buying process works. If you're considering buying a home, Dewberry Realty is here to help.
