What You Can Expect During The Home Buying Process



It may be a goal you have had since childhood. Perhaps, you have rented for most of your adult life and now want to experience the joys and satisfaction of home ownership. Buying a home is a big step and requires a lot of important decisions along the way. With some advanced planning and research, you can be sure your home purchase is something you feel good about for many years ahead. Here are the basic steps that lead you to a successful transaction.

What You Can Afford

This is different from qualifying for a loan. This is calculating how much of your budget you will devote to your home and how much money you want for other things. For a person who values travel, they can afford more house than they should buy. Some of their money will go toward accommodations on the road or other travel expenses. If you love fishing, boating, or a hobby such as restoring classic cars, factor the required budget for your preferred pastime into your overall household budget. With that in mind, think twice about buying a home the bank says you can afford. You will be happiest in the home that allows you to enjoy existence to its fullest.

Your Credit Report

Know your credit score prior to meeting with any loan officers or mortgage brokers. A lower score will result in a higher interest rate and possibly prevent you from qualifying for the mortgage you want. It can take several months to correct any errors in your report. By reviewing your statement a few months before home shopping, you could save yourself several thousands of dollars over the life of your loan.

Choosing The Right Professionals
Take time to interview several loan professionals before signing with one. You can be pre-qualified by your bank or any loan company. That does not obligate you to choose them for your home loan. Discuss your goals with a REALTOR®. They are here to consult with you at each step of the process. Also, it is a good idea to know who will be your attorney for the closing. Many builders need you to close the transaction with their lawyer. As the home buyer, it is your right to choose the attorney who'll represent you in the closing.

Selecting Your Home
Once you are pre-qualified, you are ready to begin hunting for your new home. Take your lifestyle and future plans into consideration as you view homes. If you plan to move in a few years, you may want to choose a simple, easily affordable home that will always be in demand and fairly easy to sell. It is best to have a second and third choice in mind that you can go to if you have to walk away from negotiations on your first choice.

Negotiating

Buying a home is an emotional experience. Trust your REALTOR® for guidance. They work with lenders, home sellers, and other real estate agents every day. They will advise you on negotiation strategies and be there to provide objective advice that protects your best interest in the transaction. Most contracts have contingencies, and the negotiation is not complete until all contingencies are met.

Get a Home Inspection

A thorough house inspection by a certified professional is crucial for any home purchase. You should attend the inspection and feel free to ask questions about any areas of concern. Once you have received the house inspection record, your agent will review it with you. You may choose to ask the seller to make some needed repairs, negotiate a lower price, or accept the survey and move forward with the transaction as it is.

Closing
For any changes in amounts before or after closing, the lender must provide you with a corrected Closing Disclosure showing the actual amounts. You can relax, sign the necessary paperwork, and receive the keys to your brand-new home.

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