Steps to Home Ownership
Get Pre-Approved
Shop around for lenders and get pre-approved for a mortgage. Your lender will look at your income, credit scores, revolving debts, obligations such as child support as well as the type of loan you choose. Other factors that impact how much home you can buy is the down payment; smaller down payments mean higher monthly payments. Last, the interest rate and terms (30-year,fixed or adjustable rate)will determine what you can afford in monthly payments. This step will give you an idea of your budget and demonstrate to sellers that you are a serious buyer
Make your wishlist
Location, commute, property features, and your budget are all things to conider. Decide where you want to live and how many bedrooms and baths you'll need. Think about your lifestyle - condominiums offer shared amenities, with little responsibility. Single-family homes offer more space and privacy, but much more exterior and yard maintenance. There are resources available to help you find the perfect fit.
Hire a real estate professional
Your real estate professional should be expert in the area where you want to live and familiar with the type of home you want to buy. They should have house-by-house experience in your neighborhood and can offer the best advice on homes in your price range, as well as negotiate offers, and answer any of the question you may have throughout the process
Select your home
No home is perfect, so don't let minor flaws influence you. Think long-term. Which home best suits the actvities and needs of your household now and in the years ahead? Don't buy more than you need or can comfortably afford.
Make an offer
Your agent will help you craft a competitive offer that considers the property's condition and current market value. If a home has been on the market a long time, you can ask the seller for a price reduction, but if it's new on the market, the seller is unlikely to accept a low offer. Ask your real estate professional for advice .
Get an inspection
A home inspection is a professional third-party opinion of the home's condition. A licensed inspector will thoroughly examine the property's condition, including the foundation, roof, plumbing, electrical system, HVAC system, and major appliances. This helps you identify any potential problems and estimate repair costs. While not mandatory, a home inspection is highly recommended, so you'll know what you're facing as the next owner.
Get an appraisal
The certified appraiser determines the market value of the property. This evaluation considers the property's features, condition, and comparable homes in the area. The appraisal is typically required by your mortgage lender to ensure the loan amount doesn't exceed the house's value. If the home doesn't appraise for the purchase price, the bank will refuse to make the loan unless you renegotiate with the seller. If it appraises, the lender will move toward closing.
Go to closing
Once final negotiations and the offer are accepted, the lender will verify your financial information. After a successful appraisal and inspection, the parties involved in the transaction will meet at the escrow office, which could be a title company or a real estate attorney's office. During this meeting, you'll close the deal and officially become a homeowner. The lender pays the seller, deducting any liens against the home, such as the seller's mortgage. Once all the disbursements have been made, you will receive the keys to your new home according to your agreement.
Congratulations! You're ready to move into your new home