You have the thought: Maybe I’d like to buy a house. Below are some steps to buying a property.
- Contact a trusted lender. Advanced companies are likely to be the best. Credit Unions are a close second. Banks work too, but tend to be more “big business” than in your corner. Last, but better than nothing, are your online lenders. These lenders will help you establish what you can afford at the present time, and will help you to financially plan if you want to be able to afford something better. Lenders are professionals who do this all day long, and are not judgmental. No matter your situation, they will try to help you (and if they can’t, they’ll help you to set goals and reach them).
- The best way to start is to ask family or friends who may have recently purchased who they used, and if they would advise them. Full-time agents are better than part-time agents and will be far more well-informed on the current market conditions and changing legal view. Also be aware that if an agent takes you to see a house, that agent will be due a commission from the seller if you buy it. The fee for a buyer’s agent is already factored into the selling price of a home, between 2.5% and 3% of the cost.
- Give your agent a list of necessities you want in a home, but try not to be too restrictive. You’re better off casting a wide net first, and then refining it as you go. The perfect house for you on paper maybe doesn’t exist, but often you’ll find something great that you may not have considered until seeing it.
- Put in an offer! The goal is to try and get a good price without being overly insulting to the seller. Your realtor is a good resource for doing this, and will be able to offer you comp for comparison.
- Hire a real estate legal representative. This person will perform your title search and conduct closing of your purchase. Also start Inspections. Find out something you don’t like and the seller’s won’t fix things.
- Sign the purchase and sales agreement. If your realtor writes it, have your legal representative review it. Make sure you read it, have everything explained to you that don’t understand, and read it again. Once you sign it, you’re in a legally binding contract for the biggest purchase of your life.
- Contact your lender again and give them the contact info for your real estate agent, your closing attorney, and start the formal application for getting a mortgage (the date by which you must do this will be on the P&S).
- Get all the relevant signatures and paperwork requested by the lender to them in a timely fashion to complete the advance process.
- Conduct a walkthrough on the property the day before (or day of) closing to make sure you’re getting the property in the situation you imagined.
- Go to closing, sign a bunch of papers. Get keys and enjoy your new home.
Above are some steps to buying a property. Hope it helps.