Understanding the Home Buying Process

Understanding the Home Buying Process

Purchasing a house or a home is an exciting time of your life. It doesn’t matter if it is your first home or your 50th; there is a real sense of excitement and achievement associated with completing the papers and getting the keys to your new property.

However, it is useful, especially if you are a first time buyer, to know the home buying process:

Research

 

You need to see what sort of houses are on the market, the rough price they are going for and how long they are taking to sell. This will help you to decide whether it is a good time to buy and how quickly you will need to move when you do find a home.

Budget

 

There is no point at looking at homes twice your budget! You need to see a mortgage broker and establish how much you are likely to be able to borrow. At this stage you do not want to apply for a mortgage; just know what you are likely to be able to get.

Don’t forget you will need a 20% down payment.

Real Estate

 

You now need to speak to the real estate agents and find out what properties they have which will meet your requirements. You can also look online and should go on their mailing lists.

You can find the right realtor by asking friends who they use and speaking to a number of different ones. It is possible to associate yourself with several realtors; this can help to make sure you see all the houses which come onto the market.

Look At Property

 

This is definitely the fun stage! You can g and view each home you like. It is important to visualize yourself in the property and see how you would find it to live there. You should think about the location and access routes to your work.

Generally speaking you will know when you have found the right one; then it will be time to make an offer.

Making an Offer

 

Decide how much you are prepared or able to offer and then put in a bid. Don’t start at your maximum price; give yourself some room to negotiate. The realtor should help you with this.

Once your offer has been accepted you are one step closer to the home of your dreams!

Mortgage

 

Now your mortgage broker will need to apply for your mortgage. You will quickly receive a decision in principle which will confirm you have the available funds to complete the sale. The mortgage broker will deal with all the forms on your behalf and arrange for the funds to be ready when you need them.

Surveys

 

It is normal to have surveys carried out to check the condition of the home and that the value is fair. You and the seller should get copies of all surveys completed. If this throws up any major issues you may need t speak to your realtor about adjusting your offer. Your mortgage broker can also help with this.

Finish the Process

 

Once all the paperwork has been completed and signed in all the right places your mortgage company will release the funds and you will be able to collect the keys. Then you just need to move all your belongings….

 

Categories: Finance

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