First Time Home Buying Process Explained
The Pre-Approval Process
Pre-approval for a house loan provides you a leg up on the competition when it comes to making an offer on your ideal property.
To secure a mortgage pre-approval, your lender will examine your credit and financial situation carefully.
Verify your earnings. While a pre-approval letter does not guarantee that your loan will be approved, it does help.
approved, it does give home sellers information into your willingness to buy and that you’re serious about it.
prepared to satisfy any down-payment and income requirements that may be required.
Your Credit Score
Your credit score will be one of the most important factors in determining whether you qualify for a mortgage and, if so, what your loan terms will be.
If you’re concerned that your credit needs to be improved, our Home Buyer Solutions Group can assist you. At no cost to you, our team of expert Credit Specialists will give you with the guidance you need to improve your credit scores and successfully prequalify for a mortgage.
Location, Location, Location!
There’s a reason why the most crucial component in real estate is location. The location of your home will influence not only the future worth of your home, but also many aspects of your daily life. Consider what is most important to you and your lifestyle before making this selection. Take into account local house pricing, work prospects and/or travel times, schools, safety, and proximity to family.
Go shop for a home!
This is the most enjoyable part! As a house buyer, you can search thousands of real estate listings on sites like realtor.com, then ask your agent to schedule appointments for you to see your favourites in person.
Because the sheer number of houses available can be intimidating, it’s best to distinguish your must-have characteristics from those you’d like but don’t require. Do you really desire a brand new house or would you rather have a fixer-upper? To begin, make a list of your wants and needs and narrow down your choices.
Make an offer
Have you found your ideal home? Then it’s time to approach the seller with an offer.
Get a home inspection
A home inspection is when you hire a professional to look over the house from top to bottom to see if there are any issues that would make you reconsider moving forward. Consider the following: termites, a poor foundation, mould, asbestos, and so on. Sure, a lot can go wrong, but the majority of issues can be resolved.
Even if you were pre-approved for a mortgage, your lender will require a house appraisal. This is where the lender inspects the property to ensure that it is a sound investment. It’s like a home inspection, but it’s for your lender.
Head to closing
Closing, also known as settlement or escrow in some regions of the country, brings together a number of parties involved in the real estate transaction, including the buyer, seller, mortgage agent, and others.
Closing is the day you receive the keys to your new home and pay all of the necessary fees. This will include your loan down payment as well as closing expenses, which are the additional fees you pay to execute your loan.
Closing fees can be substantial, ranging from 2% to 7% of the home’s purchase price.
Are you finished with your closing? Have you received your loan? Congratulations on making the transition from the home buyer to homeowner! After all, the long-term process of purchasing the first house wasn’t so terrifying, right? It’s now time to relax and enjoy the many advantages of becoming a homeowner.