When you are ready to buy real estate it can be an exciting time, but there are important steps to follow for a successful transaction. Here is a list for you to follow so that you can be best prepared.
Consult With a Mortgage Agent:
Speaking with a mortgage agent is one of the first steps that you will want to take. A mortgage agent can assist you with checking your credit score as well as pre-approve you for a loan. This will determine the price range of properties that will be in your search. They will also provide you with a pre-approval letter that you will need to accompany your offer.
Control Your Spending:
A key part of planning to purchase real estate is to save your money. You will need to have money available for a down payment, closing costs and other moving associated expenditures during the process. A mortgage agent can give you a good faith estimate of what costs to expect depending on your situation. It is best to keep from making any large purchases during this time as that can affect your qualification for a mortgage.
Each neighborhood offers different amenities and services so be sure to do your homework and research which areas may be best for you. Proximity to transportation, your work commute as well as cost of the homes that are suitable for your needs are some good basics. I can also help help you and find the right areas based on my years of experience and area knowledge.
Ordering a home inspection is very important for having a clear understanding of what your potential home may need for repairs. Not only will an expert know what to look for, but this information can assist you best in budgeting for future expenses. Should any significant repairs be needed, this can sometimes lead to further negotiation with the seller.
After the inspection has been done, the next step is to sign the Purchase and Sale Agreement, commonly referred to as the “P & S.” This contract lists all of the terms of your offer including milestone dates and will be accompanied with your down payment funds. You may have additional steps for financial approval, but this will be the next step until your walk-through which will be followed by your actual closing.