Steps to Buying a Home
Whether you are a first-time homebuyer or seasoned pr, following the basic steps outlined can make the experience less stressful. Buying a home will be the biggest investment of your life and what better way to accomplish your goals than to have an Exsell Expert help guide and educate you on the following steps:
Step 1 – Check your credit score
Step 2 – What can you afford?
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Step 3 – FInding the right Real Estate Agent and Loan Officer
To find the right mortgage lender, it’s best to shop around. Get recommendations from your friends, family, and check with the Better Business Bureau. Talk to at least three or four mortgage lenders. Ask lots of questions and make sure they have answers that satisfy you. Make sure to find someone that you are comfortable with and who makes you feel at ease.Once you have the right mortgage lender, make sure you at least get a pre-approval. Pre-qualifications are only a guess based on what you tell the lender and there are no guarantees, whereas a pre-approval will give you a better idea of how big a loan you qualify for. The lender will actually pull your credit and get more information about you and your finances. However, you could even take it one step further by getting an actual approval before you start home shopping. That way, when you’re ready to make an offer to buy a home, it will make the sale go much quicker. Besides, your offer will look more appealing than other buyers since your financing is guaranteed.Selecting the right real estate agent is much like selecting the right lender. Of course, Exsell would love to be your agency of choice, but go ahead, shop around! We are confident that you will feel more at ease and confident in our ability to help you buy a home and we encourage you to contact us today!
Step 4 – Looking for the right home
How much space are you looking for? More? Less?
How big do you want the kitchen to be?
Do you need lots of closets and cabinet space?
Do you need a big yard for your kids and/or pets to play in?
What is important in a neighborhood for you?Once you’ve made a list of your needs, don’t forget to think about the kind of neighborhood you want. This includes the types of schools in the area, the length of your commute to and from work, and the convenience of local shopping. Take into account your safety concerns as well as how good the rate of home appreciation is in the area.
Step 5 – Making an offer to buy a home
Step 6 – Get the right mortgage for you!
There are many different types of mortgage programs out there, but as a first-time home buyer, you should be aware of the three basics: adjustable rate, fixed rate, and interest-only.Adjustable rate mortgages (ARMs) are short-term mortgages that offer an interest rate that is fixed for a short period of time, usually between one to seven years. After that, the interest rate can adjust every year up or down, depending on the market. These are good for people who don’t plan on living in their home very long and/or are looking for a lower interest rate and payment.
Fixed-rate mortgages are more traditional and offer a fixed interest rate (and thus a fixed monthly payment) for a longer period of time, usually 15 or 30 years, though they’re available in 20 or 25 year terms. These are good for people who like a predictable payment and plan on living in their home for a long time.
Both fixed and adjustable rate mortgages can have an interest-only payment. What this means is that for a certain amount of time during the loan term, you’re allowed to pay only enough to cover the interest portion of your payment. You can still make principal payments when you wish, but you don’t have to if your budget is tight. There is a myth that with interest-only mortgages, you don’t build equity. This is not necessarily true, since you can build equity through home appreciation. The benefit to interest-only mortgages is that you increase your cash flow by not paying on the principal.
Remember to ask your mortgage lender or mortgage banker plenty of questions about which mortgage is right for you and your situation.
Step 7: Close on Your Home
Make sure you get a home inspection before you buy a home. It will be well-worth the money spent since it ensures the property’s structural soundness and good condition. These steps will be closely monitored by your buyers agent. Setting the closing date that is convenient to both parties may be tricky, but can certainly be done. Remember that you may have to wait until your rental agreement runs out and the seller may have to wait until they close on their new house. Be sure you talk to your mortgage banker to understand all of the costs that will be involved with the closing so that there are no surprises. Closing costs will likely include (but are not limited to) your down payment, title fees, appraisal fees, attorney fees, inspection fees, and points you may have bought to buy down your interest rate.START HERE! Exsell Can Help!
Step 8: Move In!
Congratulations! You’re finished with the process of buying a home. You’ve closed the deal and now it’s time to move in! Just start unpacking and start enjoying your first home! Buying a home for the first time doesn’t have to be a hassle if you’re prepared and have the support you need. At Exsell, we pride ourselves on our knowledge, expertise, and the ability to make the home buying experience an enjoyable one!To talk to one of our agents CLICK HERE