Buying a home is exciting however it is also is a very stressful process especially if you are a first time home buyer. You have to be prepared and understand the process in order help your home buying experience manageable and help you to make the best decisions.
Here are the step by step process in buying a home
Step 1 – Check Your Credit Report and Score
Check first if you are qualified to get a loan before applying for a mortgage. So make sure check your report for errors. If there are any, dispute them.
Step 2- Get pre-approved or pre-qualified for a loan
Before you begin your home buying process the first thing that you should do is to get pre-prequalified. Pre-qualification is the dry run of the application process. The mortgage company will use the details you have provided such as your income, assets, credits and debts. This may only take for minutes to few hours. Where in pre-approval is the verification of your income, asset, debts and credit history.
Step 3 – Find an Agent
Finding a good real estate agent is important to help lessen the stress and for you to enjoy the home buying experience. They know your interests and aims and helps you find a home that best suits for you.
Step 4: Look for the Right Home
Have a list that you want to have in the house. Ask yourself how many bedrooms and bathroom you’re going to need and how much space you desire for your home. Once you have completed your list. Discuss it with your agent so that he or she will know what preferences you are looking for a home.
Step 5: Make an offer
Once you’ve found a home that you like, you have to make an offer. Usually this will be done by your real estate agent. In making an offer make sure to offer a reasonable price. Price is the major factor to consider in making a deal. As a home buyer, before you make an offer you must take consideration on the seller side. Don’t make an offer that is too low, this will make the seller get insulted with your offer. Since this is their home and though they are selling it they also have personal attachment to the home. Be considerate so that you can develop the trust of the seller. If the seller agrees to the offer then the buying process can go ahead.
Step 6: Escrow and closing
Once the offer was accepted the buyer and seller will now sign the RPA or the Residential Purchase Agreement. The buyer will give an earnest money deposit, which is a money that goes in escrow to show in good faith in purchasing the property.
Step 8: Home Inspection
Make sure to get a home inspection before the final walk through and closing. This is where you can discuss the necessary repairs that needs to be done to the property.
Step 9: Closing
The title is now being transferred to the new owner. You can now move in to your new home.