10 Steps To Home Buying

   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Buying a home is a big decision and often may be mayhem not just doing the transaction but also following the next steps can be difficult especially if you are doing things the first time you will be drained down with so much information. Don't worry to help you transition into your new home successfully with minimum stress follow the road map below; 
  • Credit Score: Your credit score indicates the health of your credit. The higher the score, the healthier your credit and the more likely a lender will approve a loan with good terms. Some of the key factors that help to establish a good credit ; If you have been working and had a steady income this will to boost your score. Also paying your  bills on time, managing long-term debts low and putting money in a savings account are all recommended best practices to influence your credit score. 
  • Mortgage: While deciding on Mortgage be sure to understand how much house you can afford. A pre-approved mortgage is the ideal approach when deciding to buy a home as this assures the seller that you are a serious buyer.
  • Offer Acceptance: Everything starts the day you have made up your mind and accepted the offer this may sometimes vary depending on the terms and conditions you agreed as per the contract. 
  • Deposit: Once you have agreed upon a offer a small amount of the agreed upon price is paid generally 1% or $10,000 (agreed as per offer) which is held in an escrow account. This deposit is accounted as the initial deposit towards the property. 
  • Appraisal: This helps to understand the accurate market value of the real estate you are looking to buy. An appraisal is always advised under expert assistance to make sure the proposed purchase price in the contract is correct. 
  • Home Inspection: Hiring a licensed inspector is the best practice and at the end of the inspection you can get access to all the findings. An home inspection is important because this helps you to find out about all the hiding faults in the home and gives you a chance to ask the seller to make repairs or credit if problems where found during the inspection. Submit request for repairs before the inspection period is over so that you can negotiate repairs with seller before you sign off on your inspection contingency.
  • Review Disclosure: The seller is required to disclose all material facts relating to the property. You will sign a variety of documents which provide information about natural hazards, property taxes, lead paint, carbon monoxide detectors, permits, upgrades made to the house and anything else which may influence your decision to purchase or not purchase the property.
  • Contingency: Your purchase contract guarantees you a specific amount of time  to inspect the property and get your loan together. If you are not able to obtain a loan, or if you find a serious problem during your inspections, you can cancel the contract and have your earnest money deposit returned.
  • Signature: You should also conduct your final walk-though and sign all the necessary documents. Make sure the property is in the condition it was in when you first made the offer or better condition if the sellers have agreed to do repairs.
  • Funding and Recording: Once all the paperwork you signed at the title company is submitted to your lender, the lender will fund your loan. The bank will wire the money directly into an escrow account and funds will be dispersed according to the terms of the contract.

Next the change of ownership will be recorded by the county recorder’s office. Once we have confirmation that the property has been recorded, you get the keys. Congratulations, you are now a homeowner! I've tried to simplify the real estate jargons widely used in the home buying process to help you understand and transition smoothly in your new home. If you have any other suggestions or would like to add to the list feel free to leave comments

 

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Gurcharan Garry Bhaura

Gurcharan Garry Bhaura

Broker of Record
CENTURY 21 President Realty Inc., Brokerage*
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