Learn more about the home buying process and help prevent delays and frustration. Spend time on research to limit stress and get a sense of confidence in the buying process.
Step 1 – Check Your Credit Score
Due to the Fair Credit Reporting Act, you can order a free copy of your credit report from each of the three major credit reporting agencies. Major companies include Equifax, TransUnion, and Experian. Check the reports for errors and delinquent accounts. Report errors and create a plan to pay off delinquent accounts. Lenders check your report to determine your credit worthiness. You want the credit report to present an accurate picture of your stability and reliability. In the months before and during the home buying process, refrain from making expensive purchases that require monthly payments. Added debt will impact your debt to income ratio. If you’re considering a career change, you may want to delay that until after you purchase your new home.
Step 2 – Increase Your Savings for Buying a Home
Most people find that getting a home mortgage loan is the best choice for buying a home. Even with this loan, there are other expenses to consider. Additional costs include the down payment, closing costs, and moving expenses. You can expect to pay around 20 percent of the selling price for a down payment and up to eight percent of closing costs. Don’t get caught short on cash and delay the purchase of your new home.
Step 3 – Choose a Real Estate Agent
Your real estate agent is valuable when it comes to managing the home buying process on your behalf. They handle paperwork, answer your questions, help you narrow down your search, and negotiate with the seller. Choose an agent who listens to your needs, communicates at a high level, and is dedicated to providing a positive experience. Honesty and integrity are important when it comes to getting straight answers that will save you time and money.
Step 4 – Apply for Home Mortgage Pre-Approval
Dreaming of a new home with all the amenities you could ever want is thrilling, but the reality if often more down-to-earth. Don’t set your sights on a home outside of your budget. Applying for a home mortgage loan is an excellent way to learn how much you can afford. Searching within your target price range saves time and frustration. When it comes to offers, your pre-approval sends a message to the seller that you are serious about buying and can follow through to the end.
Step 5 – Place an Offer on the Home
Your offer should impress the seller. At the same time, you want to be cautious about overpaying. The right offer increases your chance of success. Consider that other buyers may be interested in that home, so you want your offer to stand out above the rest. Trust your real estate agent to provide helpful advice on creating the right offer. Their experience and knowledge can help to create one that catches the sellers attention.
Step 6 – Reach Closing Day
The seller accepts your offer, and the home buying process proceeds to the next stage. The lender will schedule an appraisal and inspections. Once the investigations are complete, and everything is in order, you will arrive at closing day. Celebrate this day! You sign any required paperwork, pay all fees, and collect the keys to your new home.
Your real estate agent is the best source of information about the local community and real estate topics. Give EXIT Real Estate Solutions a call today at 803-667-8626 to learn more about local areas, discuss selling a house, or tour available homes for sale.