The Home Buying Process

Steps to Buying a Home

Step 1: Figure out How Much You Can Afford

You can calculate how much you can afford by starting online. There are several online mortgage calculators that will help you calculate an affordable monthly mortgage payment. Don't forget to factor in money you'll need for a down payment, closing costs, fees (such as fees for an attorney, appraisal, inspection, etc.). An experienced mortgage expert and attorney can help you understand all of your loan options, closing costs and other fees.

Step 2: Find the Right Lender and Real Estate Sales Representative

To find the right mortgage lender or broker, it’s best to shop around. Get recommendations from your friends and family and check with the Better Business Bureau. Talk to at least three or four mortgage lenders/broker. Ask lots of questions and make sure any concerns you might have are satisfied. Make sure to find someone that you are comfortable with and who makes you feel at ease.

Once you have the right mortgage lender/broker, obtain a pre-approval. 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. That way, when you're ready to make an offer, it will make the sale process go a lot quicker. Besides, your offer will look more appealing than other buyers since your financing has been approved.

Step 3: Look for the Right Home

Make a list of the features your looking for in a new home. Ask yourself how many bedrooms and bathrooms you'll need and get an idea of how much space you desire. 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?

Once you've made a list of your must-have's, don't forget to think about the kind of neighborhood you want, types of schools in the area, the length of your commute to and from work, and the convenience of local shopping.

Step 4: Make an Offer on the Home

Now that you've found the home you want, you can make an offer. Most sellers price their homes a bit high, expecting that there will be some haggling involved. You can also get a list from your Real Estate Sales Representative to find out how much other comparable properties have sold for. Once you've made your offer, don't think it's final. The seller may make a counter-offer to which you can also counter-offer. Now that you have agreed on a price and possible conditions, your one step closer to purchasing your home.

Step 5: Get the Right Mortgage for Your Situation

There are many different types of mortgage programs out there.

Remember to ask your mortgage lender/broker lots of questions about which mortgage is right for you and your situation.

Step 6: Close on Your Home

You may want to consider a home inspection before you close. It will be well-worth the money spent since it ensures the property's structural soundness and condition.

Setting the closing date that is convenient to both parties may be tricky, but can certainly be done.

Be sure you talk to your mortgage broker/banker and attorney to understand all the costs that will be involved with the closing, so there are no surprises.

Step 7: Move In!

You've got your mortgage, closed the deal and now it's time to move in! Whether you use a mover or not will depend upon on your financial situation and how much stuff you have to move. Perhaps, you have a lot of friends willing to help you move. Either way, you're done with the home buying process! Just start unpacking and start enjoying your home!