Ten steps to make your home buying process more manageable.
1. Figure out how much money you have for a down payment on a home.
2. Set up an appointment with a local bank or mortgage lender to determine your borrowing limit and other expenses, such as closing costs and special programs, that you may qualify for. This is called a Pre-Approval.
3. Make a wish list of what you want and need in a home, where you would like to live, what you would like to do related to work, schools, and family, and the number of bedrooms and baths.
4. Find a local real estate agent to help you. It's most common that a real estate agent is needed to sell a home, but it is equally important that you have someone representing you to negotiate the best deal and find that special home for you.
5. Start looking at homes online or visit them with your real estate agent. Research the neighborhoods and homes in the area that can help you build equity in your new home.
6. Make an offer to purchase within your budget and include a home inspection in your purchase offer. A home inspection by an independent inspector can help identify any issues that may cause you unexpected expenses down the road. You may consider asking the current owners what these average expenses cost on the home, such as homeowners insurance, annual taxes, and even utilities.
7. Finalize your mortgage application and keep in touch with your bank or mortgage lender to ensure all necessary documentation is in order.
8. Select an attorney to search for a home title and secure a clear title to the property. This will be included in your mortgage documents and who you want to provide your homeowners insurance to.
9. Do not change jobs or make purchases that would create a loan credit inquiry or reduce your monthly income needed for your mortgage approval. So hold off until you close on any financed purchases of new appliances, furniture, or an auto. You will have plenty of time after you move in.
10. You can close your new home purchase by signing the necessary paperwork, paying closing costs, and moving into your new home.