Essential Steps to Buying a Home
By Susan M. Keenan
Photo: © Marilyn Volan - Dreamstime
Shopping for a home is a huge endeavor, so it is critical that consumers do a bit of research and get familiar with the home-buying process before they actually begin to shop around. This article outlines the basic steps to buying a home.
Step 1. Pre-qualify for a home mortgage.
Take the time to search for a mortgage lender or bank that provides home mortgages. Complete the paperwork and get pre-approval for a mortgage. Not only will you find out how much you can afford to borrow, but also, it will give you an edge above other potential homebuyers who make offers without first having gotten their pre-approval letter. Sellers feel more comfortable about accepting an offer from a potential buyer if they have already been approved for a loan.
Step 2. Shop for your home.
Put together a list of essential features that you must have, as well as a list of features that you would like to have with your new home. This will aid the real estate agent in locating properties that meet your criterion. |
Step 3. Make an offer.
Once you find a home that you like and wish to purchase, make an offer. Your real estate agent will help you determine what your offer should be. In general, the closer you come to the asking price, the more likely it is that your offer will be accepted.
Step 4. Arrange for a home inspection.
If your offer is accepted, arrange for a home inspection to check out the functioning of the utilities, the roof, the construction, and such. Although an inspection will add to the overall cost of the home, it is definitely worth it in terms of finding out what to expect when you move in. It also lets you discover whether the sellers are hiding anything from you.
Step 5. Arrange for homeowner's insurance.
Homeowner's insurance is required to protect your lender's investment. Bundling your insurance policies, for example, getting homeowner's insurance and car insurance from the same company, may get you a discount.
Step 6. Gather contact information for the utilities.
Get pertinent information for the telephone service, trash service, cable television service and other utilities, before you make settlement. Arrange to have power reinstated and billing sent in your name.
Step 7. Finalize the deal.
Finally, attend settlement and sign on the dotted lines. This process is typically streamlined with the real estate agents on both sides providing most of the necessary documents. Be sure to bring any paperwork that will be expected from you along with payment. |
