Ready to Buy a Home? Here are a Few Tips!
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Purchasing a home is an exciting event! You’re also making a great investment in your future. There are several steps to the home buying process, let’s look at what to expect.
Learn About Loan Options.
Even before you begin the search for your new home, you should meet with your lender to see what mortgage options are available for you. If you are a first-time home buyer, you may qualify for special mortgage options to make that purchase more affordable. You will also need to be pre-approved for a mortgage before you begin the property search.
Find Your New Home
The fun begins when you work with a real estate agent to see the homes available that match your mortgage budget. Educate yourself about the area where you’d like to live. And carefully consider the options you need to make a house your home.
Make an Offer
Once you’ve found the home you’d like to buy, your real estate agent will make an offer to purchase the home on your behalf. The owner may accept your first offer, but it’s not uncommon for the seller to make a counter offer. Your real estate agent will work with you to ensure that this step is well taken care of.
Sign the Purchase Agreement
After your offer has been accepted, it’s time to sign the purchase agreement. This agreement contains all the details of the purchase. Be sure to review this carefully, and to make sure that you understand what you are buying.
Finalizing the Mortgage
The next step in the home buying process is to return to your lender to complete the mortgage application. In your first meeting with the lender, you considered your mortgage options and got pre-approved. In this step, you will decide which mortgage is best for you. Your lender will help you through this process.
Buy Insurance
In addition to purchasing homeowners insurance to protect your property, you’ll want to purchase title insurance as well. For a one-time fee, your title insurance policy provides coverage for as long as you own that property. Title insurance protects your title from forgery, fraud, outstanding liens against the property and so much more.
Time for the Closing
Once the mortgage work has been completed and the insurance purchased, it’s time to schedule the closing. During the closing, you will sign a number of legal documents. Those documents will include the closing disclosure, promissory note, and deed of trust.
The closing disclosure will provide you with the terms and all costs of your new home purchase.
The promissory note details the information about your home loan and is your promise of commitment to repay the loan.
The deed of trust is the document that records the legal transfer of ownership of the property you are purchasing from the sellers to you the buyer. It also explains the conditions of foreclosure if you fail to repay your mortgage.