First, are you ready to buy a home? Home ownership can be more expensive than renting. You are responsible for paying for all the repairs. You may also have added utility costs, such as garbage and water, property taxes and insurance related to your home. These costs add up quickly, and if you are not financially prepared, you may end up in a very negative position. You should take the time to get out of debt and save up an emergency fund, before you purchase your first home.
Second, you need to get preapproved before you shop for a home, contact a local Morgage Broker that can help you with your options. This will help you to look within your price range. A mortgage broker will look at several different loan companies to find you the best rates. However, your small local bank or your credit union, may have options that will save you money as well. Once you find a loan with the correct terms you can begin shopping.
You also need to determine how much you can really afford, experts can advise you to make sure buying a home wont make you house poor. If you spend too much on your mortgage you may not be able to meet your daily obligations let alone save for retirement or have a life. A smaller house is worth the peace of mind.
Once you have determined how much you can really spend and are preapproved you need to find a good REALTOR®. A good way to find a REALTOR® is through the recommendations of friends and colleagues, and if you are relocating to a new area ask your current REALTOR® to refer you to an agent in the area you are reloacting to. Your REALTOR® should listen to your wants and needs carefully, they may make recommendations or explain the market to help you find a home that suits your needs and that you can afford. They should offer several different options and be someone that you trust to have your best interests at the forefront. Once you find a home and decide to make an offer your REALTOR® should work to negotiate terms that you are happy with.
Another important step is a thourogh home inspection. This is different from an appraisal, the home inspector will look for hidden problems with the home. Through the home inspection you can learn about any issues that may prevent you from buying the home. This may include mold problems, termites, foundation problems and a bad roof. The inspection can save you thousands in repairs later on. Additionally you may be able to negotiate a lower price or have the issues repaired prior to completeing on the sale of the house.
Once you have bid on your home, offer is accepted, and completed your du-dilange by satifiying yourself with the subjects, you then remove all of the subjects and the deal becomes unconditionally sold. At this time all of the documents, money and other necessary information is sent to your lawyer of choice, to prepare all the documents to close the sale. Lawyers are there to protect you the buyer or the seller and the lender. The lawyers will have you go in and sign all of the documents a few days prior to closing to complete the sale.
Once the sale has closed and has been registered with the Land Title Office, you get possession of your new home and it is time to move in. You can paint, unpack and enjoy your new home. Be sure that you change your address with your bank, and other accounts. You can set up your utilities and cancel your old ones as well (this can be set up prior to closing on your sale). This will save you time and money, because you will avoid late fees. Some companies will waive installation fees if you transfer your old account to your new address.
These are the general steps to purchasing a home and there are many mini steps in between. For more information on the process or for any questions, don't hesitate to call me.
I look forward to hearing from you.
Century 21 Executives