Buying a home is a big job; however, there is no reason to feel overwhelmed. Everyone starts from square one and it starts with step one. There are plenty of things which can be read books or found on the internet. If you can connect with an experienced a loan officer who will listen to your concerns and draw on their experience to educate you further and make you feel comfortable with your choices. The loan officer will allow you to understand the numbers (money needed and debt to income ratios) and confirm that your credit is satisfactory. Having an experienced real estate agent is important too, they will serve as your guide in locating your property and writing the contract offer.
Usually, the two most important people you are likely to work with in your quest for a home are your realtor and your mortgage officer. While you don’t have to hire a real estate agent to make a purchase, it’s difficult to go it alone, and most people do need to get a mortgage to purchase a property.
Many buyers rely on real estate agents to help them find the dwelling that best suits their budget and their needs. Realtors are aware of what homes are on the market and future upcoming buying opportunities. You should discuss with your agent issues as price negotiation, home inspections and homeowner association fees. The loan officer will educate further on mortgage loans, escrow, and closing costs.
Realtors often can put you in touch with reputable lenders or mortgage brokers who can help you get preapproved for a loan and lenders will also know who are the better agents and can help with advice.
Although shopping for a home and securing financing takes time, the rewards of homeownership can be great. Owning a place of your own is one of life’s great accomplishments. Homeowners are not at the mercy of landlords who can abruptly raise the rent or decline to extend a lease. Over time, most residential real estate appreciates in value, creating financial security for the owners.
While it’s fine to seek the advice of trusted professionals, in the end you will be the one who has to live with your home-buying choices. If you take a little time to prepare before starting your search, you will increase your chances of finding a home that enhances your lifestyle and helps secure your financial future.
Your lender should be able to tell you what house price that you qualify to purchase and approximate payment. Armed with that knowledge, you and your real estate agent can locate the houses you wish to see in your price range. After you have viewed the house choices and determined that you wish to offer a contract on one of the homes; you, your agent and lender will come up with an offer that gives you the best chance of getting the house. If the contract is accepted, then a home inspection and appraisal need to done. Hopefully, you have already begun your application with your lender; however, if you have not then you should begin.
Once your application for a mortgage loan has been approved and you have received a “commitment letter” (Approval) from the lender, the final step before you can call the house your own is the closing, or settlement, of the purchase transaction and mortgage loan. Even though you have signed purchase agreement and your loan request has been approved, you have no rights to the property, including access, until the legal title to the property is transferred to you and loan is closed. You should have a good understanding of what is involved in the closing process, because there are a number of things that you can do to make sure that it goes smoothly and on time.
At closing, you will sign the mortgage loan documents, the seller will execute the deed to the property, funds will be collected and disbursed and the closing agent will record the necessary instruments to give you legal ownership of the property. Settlement of a mortgage loan is a legal process, so specific procedures and requirements will vary according to state and local laws. You are not finished, but the hardest is behind you.