Step By Step Guide to Home Buying Process

Determine Your Budget

The first step is for you to determine your budget. Remember that you can get a free credit report once per year that can help you identify and clean up any inaccuracies on your credit report before you actually apply for a mortgage. Then, you should determine your budget. One of the top home buying tips, most financial professionals recommend that you spend no more than 28 percent of your pre-tax monthly gross income on your mortgage.

Find Your Location

A key piece of home buying advice, narrow down where you would like your new home to be located. Think about lifestyle preferences, your commute to work, the quality of the schools, and the average price per square foot of homes in the area.

Get Pre-Approved for a Mortgage

One of the top tips for home buyers, you must get pre-approval quotes. Of note, you do not have to get your final mortgage from the lender who preapproved you; however, It is important to get pre-approved because this will give you a budget for your loan in addition to making you look more competitive when you start placing offers on homes.

Find the Right Real Estate Agent

You should hire a real estate agent to guide you during this process. Read some reviews of local agents in the area and see who you communicate best with. You and your real estate agent need to be on the same page in order for him or her to find you the best house to meet your needs. 

Start the Home Search Process

Finally, the fun part can begin. It is time to start looking at homes and envisioning your life and the various opportunities. If you are starting your home search, it is critical for you to work with so that you can take a look at everything that is out there. Furthermore, with a wide array of resources that can help you during the home search process, you can rest easy knowing that will find you the best home for your family. 

Make an Offer

Once you find a house that you love, it is time to make an offer. Depending on the location, you may want to make an offer sooner rather than later. Your realtor should let you know how quickly homes are sitting on the market, on average. The shorter the average “days on list,” the faster you will need to make an offer. You should also be prepared for a counter-offer as well. Some of the areas that can be negotiated, other than price, include closing costs, moving expenses, and even furniture the owner might be leaving behind.

Schedule Your Inspection

You should never purchase a home without getting a home inspection. If you find there is a problem with the roof or the HVAC unit, you might be able to negotiate a better price for the home. 

Lock Down Your Financing

Once your offer has been accepted, you need to complete the mortgage process. Even though you do not necessarily have to complete your mortgage with the lender who pre-approved you, many homeowners decide to do that. 

Get Homeowner’s Insurance

A home is a valuable asset and you need to protect it with homeowners’ insurance. Your lender should be able to help you find the right homeowner’s insurance policy for your home. 

The Closing Process

Finally, it is time to close. The seller, the buyer, the lender, and the real estate agents will all be involved in the closing process. This includes signing documents at the title company, exchanging funds, and signing the mortgage documents. Usually, closing costs are going to cost somewhere between three and five percent of the sale price. Even though the seller usually covered this cost, this can be negotiated.

Move In!

Finally, it is time to move into your new home! 

Work with an Experienced BCS Realtor

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