Recently I was involved in a Home Purchase. I doubt i did everything correctly but here are the steps that may help you make the right choice. First, find out what you can afford. How do you do that? There are many different websites to help you. One for example is https://www.wellsfargo.com/mortgage/. Get pre-approved from a bank such as Wells Fargo. That way you know you are not wasting your time looking at houses that are below or above your price-range.
Figure out what your payments are going to be. Make sure that its in your budget. Nothing is worse then buying something you can not afford. Foreclosure is not a fun thing. Second, start looking. You can do this a number of ways. Pick up the local paper, speak to reputable Real Estate Agent(find one at http://www.myagentreview.com/), look online, or even just drive around the neighborhood you're interested in. Once you find your home you can have your Real Estate Agent put an offer on the home.
However, before you go offering your life savings up for your dream home, stop and consider a few things. Are homes in the area selling for the same general price, you do not want to find out later you bought a home for $50,000 more then your new neighbor within months of purchasing your home. http://www.zillow.com maybe a great place to start figuring that out. A good Real Estate Agent will also help you out with this. Next figure out the property taxes on your new home before you buy it. 2.0% is a pretty hefty sum but very typical in new neighborhoods. Do not get shocked when you get a bill for property tax, figure it out first. Have your agent get you a property profile.The property profile may have a lot of information that you would want to know about your new neighborhood.
After you have your heart set on a new home, put an offer on the home, your agent will help you with this process. Typically offers require a deposit, letting the buyer know you are serious. Generally in about 3 business days you will get a reply. Maybe they accepted, maybe they counter offered. Once a price is agreed upon you will have an x amount of days to close escrow.
Now its time to get serious about your loan. Make sure you choose the right loan for you. http://www.bankrate.com maybe a great place to shop your loan around. Yes, you are pre-approved but maybe you can do better with another lender. Do not try to get a quote from everyone and remember to ask for GFE(Good Faith Estimates). We will cover shopping for a loan in more detail in another article, however for now make sure you do not go giving out your social to everyone because thats going to hurt your credit score. I'd recommend to at least get three different people to give you estimate. Find the Loan and Loan Processor that you are most comfortable with. I CAN'T STRESS THIS ENOUGH, READ THE FINE PRINT.
Once you have selected loan, no the process is still not done, its time for you to put up your down payment and have the bank pay the seller. You will most likely wire, or give the bank a cashiers check for your down payment. In a few days they will record the transaction with the city and you can take delivery of your home. You may want to hire a private inspector to make sure the home is in good condition. Ultimately it rests upon your own shoulders to make sure that your house is in sound condition.
A good real estate agent will make sure that they are there to help you every step of the way. Agents make a commission off the transaction and represent you. A good Agent will make this process smooth and hassle free. They will most likely explain every step of this process more clearly then I have.
-MyAgentReview.com
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