10 Steps to Buy a House.

10-step overview of what the home-buying process is like.

Step 1: Start Your Search Early

You can start looking over websites and other sources with real estate listings as soon as possible. Please note particular homes you would be interested in and see how long they stay on the market. Also, please keep in mind any changes in asking prices. This will give you a good sense of the housing trends in specific areas.

Step 2: Determine How Much House You Can Afford

Lenders generally recommend that people look for homes that cost no more than three to five times their annual household income if the home buyer plans to make a 20% down payment and also has a moderate amount of other debt. However, it would be best if you made this determination based on your financial situation. 

Useful affordability calculator:  affordability-calculator-1   

Useful mortgage calculator: mortgage-calculator-1. 

Step 3: Get Prequalified and Pre-approved for Credit on a Mortgage

Before looking for a home, you must know how much you can spend. The best way to do that is to get prequalified for a mortgage. To get prequalified, you must provide financial information to your mortgage lender, such as your income, savings, and investments. Your lender will review this information and tell you how much they can lend. This will tell you the price range of the homes you should be looking at. Later, you can get pre-approved for credit which involves providing your financial documents (W-2 statements, paycheck stubs, bank account statements, etc.) so your lender can verify your financial status and credit.

Step 4: Find the Right Real Estate Agent

Real estate agents are essential partners when buying or selling a home. Real estate agents can provide helpful information on homes and neighborhoods that aren't easily accessible to the public. In addition, their knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in can be precious. And best of all, it doesn't cost you anything to use an agent – they're compensated from the commission paid by the house's seller.

Step 5: Shop for your Home and Make an Offer

You can start touring homes in your price range. Taking notes (using this helpful checklist) on all the homes you visit might be beneficial. You will see a lot of houses! It can be hard to remember everything about them, so you should take pictures or videos to help you remember each home.

Make sure to check out the little details of each house. For example:

• Are the other homes on the block well-maintained?

• How much traffic does the street get?

• Is there enough street parking for your family and visitors?

• Is it conveniently located near places of interest to you: schools, shopping centers, restaurants, parks, and public transportation?

Take as much time as you need to find the right home. Then work with your real estate agent to negotiate a fair offer based on the value of comparable homes in the same neighborhood. Once you and the seller have agreed on the price, the house will go into escrow, which is the period it takes to complete all the remaining steps in the home-buying process.

Step 6: Get a Home Inspection

Typically, purchase offers are contingent on a home inspection of the property to check for signs of structural damage or things that may need fixing. Your real estate agent usually will help you arrange to conduct this inspection within a few days of the seller accepting your offer. This contingency protects you by allowing you to renegotiate or withdraw your offer without penalty if the inspection reveals significant material damage.

You and the seller will receive a report on the home inspector's findings. You can then ask the seller to fix anything on the property before closing the sale. Before the sale closes, you will have a walk-through of the house, allowing you to confirm that any agreed-upon repairs have been made.

Step 7: Work with a Mortgage Banker to Select your Loan

Lenders have a wide range of competitively priced loan programs and a reputation for exceptional customer service. However, when purchasing a home, you will have many questions, and having one of our experienced, responsive mortgage bankers assist you can make the process much easier.

Every home buyer has their priorities when choosing a mortgage. Some are interested in keeping their monthly payments as low as possible. Others are interested in making sure that their monthly payments stay the same. And still, others pick a loan based on the knowledge they will be moving again in just a few years.

Step 8: Have the Home Appraised

Lenders will arrange for an appraiser to provide an independent estimate of the value of the house you are buying. The appraiser is a member of a third-party company and is not directly associated with the lender. The appraisal will let all parties know you are paying a fair price for the home.

Step 9: Coordinate the Paperwork

As you can imagine, a lot of paperwork is involved in buying a house. Your lender will arrange for a title company to handle all the paperwork and ensure that the seller owns the home you are buying.

Step 10: Close the Sale

At closing, you will sign all the paperwork required to complete the purchase, including your loan documents. Funding your loan typically takes a couple of days after the paperwork is returned to the lender. Once the check is delivered to the seller, you can move into your new home!

I hope this information helps!