10 Steps to Buying a Home

When you decide that it is time to buy your own home, you must have cash for a down payment.  You may choose to open a savings account or a family member may give the down payment as a monetary gift.

Depending on the type of loan and any loan programs you will qualify for, typically, you would need down payment that ranges from 3% - 20% of the purchase price.

Evaluate your finances. Your credit reports are an ongoing record of how you manage your finances.  It plays an important role in the mortgage approval process and in determining the interest rate and other loan terms that a lender offers you

Real estate agents are essential partners when you are buying a home. They can provide you with home searches as well as valuable information on homes that are not easily accessible to the public.
 
Here are some of the exceptional values that real estate agents can provide you during your home search:
​
1. Knowledge of the home buying process 
2. Negotiating skills
3. Familiarity with the area you want to live in 
 
On top of that, using a real estate agent does not cost you anything as they are compensated from the commission paid by the seller.

Once you found the perfect home, it is time to make an offer on the property. This is an area in which your real estate agent is invaluable. Work with your real estate agent to negotiate a fair offer based on the value of comparable homes in the same neighborhood. Your real estate agent will draft a contract which will include the price of the offer, as well as the terms that will then be submitted to the seller.  Once you and the seller have reached an agreement on a price, you can move forward to complete the home buying process.

​

Depending on the State where you are buying your home, your real estate agent may recommend using a real estate attorney who will ensure that the contract meets all of the necessary legal requirements.

Lenders have a wide range of competitively priced loan programs and a reputation for exceptional customer service. Ask your real estate agent to introduce you to the preferred financing consultant.
You will have many questions about financing a home, and having an experienced, responsive lender to assist you can make the process less stressful.
​
Be prepared to provide financial statements and other documents that the lender would require from you.

As you can imagine, there is a lot of paperwork involved in buying a house. Your lender may require additional documents to be reviewed before they can approve your loan and issue clearance for closing the sale.

It is important to take note of the things that you cannot do when obtaining a mortgage loan as it might result to being denied of your mortgage application.

Lenders require Home owners insurance for the property to be purchased before you will be cleared to close on the transaction . This will protect the home in the event of fire, theft, or other potential liabilities.

In case your property is located in a flood zone, you may be required to purchase a separate flood insurance. Find out if the property you are looking to buy is on flood zone.

Title insurance is another type of insurance that is considered and is handled by the Title company that is hired to do the title searches for the home you are buying. This will protect you against liens that is placed on the property and make sure that the title is clear and marketable. Title insurance should be equal to the home's full value.