#1 Financial Benefit of Homeownership: Family WealthWhile growing up, we were taught by our parents and grandparents that owning a home is a financially savvy move. They explained how a mortgage is
10 Steps To Buying A Home
Buying Step #1: Figure Out What You Can Afford
In other words, account for expenses. The purchase of a home is a complex process. In particular, buyers will often feel troubled by the huge expenses involved. Before setting out to buy a home, consider its affordability. You need to know if the particular home is in your budget. A home may seem affordable to you at a glance, but there are hidden expenses involved in buying. The actual cost of a home will always end up being more than the selling cost indicates because there are added fees.
Buying Step #2: Make Sure You Can Get A Loan
Buying a home requires an amount of money normally not available to a buyer in their pocket or bank account. For this reason, buyers contact lenders for loans. For potential homebuyers, it is important to stay disciplined and go for an affordable home purchase. The best approach to buying a home is pre-approval by a reputable and prudent mortgage lender with whom you have worked to assess affordability of a mortgage within your budget.
Buying Step #3: Create A List of Wants And Needs
A certain amount of energy is required when deciding your list of wants and needs for the home. Based on your specific budget, you must figure out what’s important to you and what you are willing to compromise. When estimating all your needs and wants, it can be productive to assign a numerical value, such as 1 to 10, on the items that are important to you. While visiting homes, you can then visibly chart which homes have the highest value to you.
Buying Step #4: Contact and Agent
Contacting a reputable qualified professional real estate agent is highly advisable; one would be safe to say it’s downright mandatory. The agent will find a house for you according to your needs and desires and start a home search for you. Agents not only have all kinds of different choices and options to present you, they can also show you various quality locations and guide you through the buying process.
Many buyers are confused about how buyer’s agents get paid. The seller pays the buyer’s real estate commission to the listing brokerage. The buyer does not pay their agent.
Buying Step #5: Look At Homes
After your Realtor(R) creates your home search, the houses that come under your budget requirements and criteria should be visited. Before buying a home, visit it and consider every aspect of it.
Buying Step #6: Make An Offer
The first step to actually buying a specific home, once you researched, compared and visited, is to make an offer. This means proposing a price to buy the property. Upon drafting and signing the offer, it is forwarded to the seller through your real estate agent. The purchase offer is not a binding sales contract. It is the buyer’s offer on the house based on its current condition. If the seller doesn't agree to your terms, the listing agent and seller can respond back with a counter offer. Any change the seller make to your offer voids it and you can either accept, refuse or create another counteroffer to send back to the seller. Offers can go back and forth several times during negotiations. The offer does not become a contract until everyone agrees to all changes in writing.
Buying Step #7: Put Money In Escrow
While purchasing a home, the buyer is expected to put money into escrow within 48 hours upon accepted offer. This deposit is considered Earnest Money or EMD and makes the contract binding and subsequently moves it through closure. Escrow is the period between the time a purchase offer is made on a property and the time when that property’s title is transferred to the new owner. An escrow agent is a third party enjoying a neutral state between the buyer and seller. The escrow is assurance to both parties and is involved in the transaction so that the clauses of the offer will be met completely. The money collected from the buyer is held in escrow until the seller completes their obligations and transfers the title to the buyer. After this, the payment is remitted to the seller. The EMD is used to cover some or all of the down payment, purchase price, and closing costs.
Buying Step #8: Watch The Contingency Dates
The moment you go under contract, your contingency periods begin. These contingencies include due diligence, appraisal and financing. First, the most straightforward is the due diligence, which is whereall necessary inspections are done and if the house isn't in sound condition, the purchase might not go through. Low appraisals are another of the major breakers of these deals. If the appraisal is too low, the lender will not give you the full amount of the loan for your deal. Lastly, as you finalize the deal with the seller, it is important to make sure your loan will be approved and financing is not an issue.
Buying Step #9: The Closing Process Begins
Also referred to as settlement or escrow, the closing process is highly automated and computerized. In most closings, the buyer and seller are present in an office setting and review the property's ownership. The objective of the closing process is to transfer title of the property to the buyer. During the closing process, the deeds, loan documents, and other papers are prepared, duly signed and submitted to offices maintaining property records. The end result of the closing process is that the buyers receive the title to the property, the lenders get their loans documented in public records, and the state government gets to collect the taxes generated by the transaction.
Buying Step #10: We Closed
Congratulations! You are now a homeowner. The deed has been recorded into the new buyers name, funds have been wired to the seller and keys have been handed to the new buyer.
If you or anyone you know is interested in buying a home, call/text me at 702-415-6348!
Ashleigh moved to Las Vegas from Lake Charles, LA where she studied Instructional Design and Mass Communications at McNeese State University. She proceeded to work in a fast, upscale environment provi....
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