If you are tired of paying off someone else’s mortgage or acting as a revenue stream for your landlord, it may be time to purchase a home of your own. Let’s take a look at what it takes to purchase real estate.
1. Get Preapproved for Financing
Call a variety of mortgage lenders and get preliminary approval. The process generally takes a few minutes if you have your income and credit information available.
2. Find a Real Estate Agent
Meet with a real estate agent to talk about your budget and what you need from a property. Once you agree to be represented, your agent is entitled to a commission even if you later drop this person.
3. Find a Home
Once you have preliminary financing and an agent to represent you, you can seriously start shopping. Your agent can help you find homes or you can look at online listings that meet your needs.
4. Put in an Offer
When you find a home you like, your next step is to put an offer on the house. The seller should approve or deny it within a day or two.
5. Get the Offer Accepted
If your initial offer is declined, you can revise it. However, once it is accepted, you are now entitled to learn more about the house before closing.
6. Inspect the Home
The inspection process takes about two hours and is conducted by a professional of your choosing. Although its an optional step, you should never skip it.
7. Get Your Mortgage Application Approved
Now is the time to submit a formal mortgage for approval. The lender will look at your financial information to determine whether your qualify and what the terms will be.
8. Agree on a Closing Date
After the loan is approved, you can formally choose a closing date. Generally, the date is 30 to 60 days after the offer is accepted.
9. Close the Deal
Your attorney, the attorney for the bank and the seller’s attorney will meet to sign the loan documents. You will also get a deed to the property at the time of closing.
10. Take Possession of the Home
The final step is to move in to your new home. This can happen any time after the transaction closes, or it can happen before closing if the seller agrees to prior possession of the property.
Your first home purchase is an event that you won’t soon forget. Instead of paying rent to someone who dictates how you use your space, you are in control of your own destiny and can enjoy the stability that comes with it.