Think you are ready to dive headfirst into buying your dream home? You may find that the process is as overwhelming as it is exciting. This is usually due to not knowing what to expect.
To give you some peace of mind, this home buying process checklist can help you see the bigger picture so you can know where you are on your journey.
Prepping for Home Buying
Before you can even think about buying a home, you have to take care of a few things. For one, you need to address your finances. How much can you afford to pay for a home? How much money do you have set aside for a down payment? Take an honest look at your income, your savings, and your monthly expenses. If you intend to finance, apply for mortgage pre-approval with your lender so that you have a better idea of your buying power.
Next, decide what it is you want in a home and know the area where you’d like to find it. Then, of course, you will want to hire a realtor. Be sure you choose someone who comes with a lot of experience and is well-versed in the local market.
Begin the Search For Your New Home
Your realtor will find listings that match your preferences. Review them and select those that catch your eye. You can take a closer look at them online, attend open houses, and have your realtor schedule in-person viewings.
Once you find the one that you know is right for you, talk to your realtor about making a competitive offer — and be ready to negotiate.
If your offer is accepted, move on. If the seller chooses to go with another buyer, keep looking.
Choose Your Lender and Obtain Your Loan
Now is the time to begin the mortgage process. You can either contact the lender who gave you pre-approval or select a different lender instead.
You will need to complete all of the formal paperwork to obtain the loan and make the purchase. Know that this can be tedious and time-consuming, but staying on top of it can keep the home-buying process inching forward.
Get an Appraisal
There is a high chance that your lender is going to require you to get an appraisal on the property before the loan can be finalized. This will assess the home’s value and help the lender determine if the appraised amount lines up with the purchase price.
Your lender is not likely going to be willing to give you a large loan for a house that is appraised for much less. Should you find yourself in this situation, there are ways to handle it so that you can still buy the property. Your realtor can guide you on the steps to take.
Schedule an Inspection
Getting an inspection is always a smart idea as it will uncover any issues with the property before you purchase it. Sometimes these issues can be significant and can help you either negotiate a lower price or allow you to walk away.
Be sure to review your inspection report carefully before proceeding.
Prepare for the Closing
In preparation for the big day, you will be given a chance to review the documents you will sign at closing. But that isn’t the only thing you need to do. For instance, you will need to complete the loan process, invest in title insurance and homeowners insurance, and do a final walkthrough of the property. You will also need to have your closing costs ready, as well.
If you aren’t sure about any part of the closing process, talk to your realtor.
The Closing
This is the day you have been waiting for. The closing is when you will officially sign off on your loan documents and property documents. The money for the purchase will be transferred and closing costs will be settled.
If all goes well, you will walk out of the closing with the keys to your new home.
Do You Still Have Questions About the Home Buying Process?
At Shepherd Homes Group, we specialize in residential real estate. We can walk you through the process of finding and buying your dream home — and we can answer all the questions you may have along the way.
Contact us today at (703) 997-1462.