Home Buying Steps
Step 1: Understanding what you can Afford
Before buying a home, you’ll want to understand your financial situation so you can properly budget for your home. Take inventory of your finances, including income, debts, savings and your monthly expenditures to assess how much you can afford.
Step 2: Down Payment
Most people don’t realize that you have options when it comes to making the down payment on your home purchase. You'll want to talk with your lender about what makes the most sense for you, but qualified borrowers can put down as little as 3%. Don’t fall for the common 20% down misconception.
Step 3: Find a Real Estate Agent
It’s important to have the right people by your side when you’re ready to buy a home. Consider reaching out to a real estate agent and lender to help you achieve your homeownership goals.
Step 4: Get Pre-Approved
Your agent will have a list of lenders that you can work with to get pre-approved for your mortgage. Your lender will play a critical part in helping you determine how much home you can afford in addition to securing you the best mortgage option.
Step 5: Go Home Shopping
Make a list of what you want vs. what you need in your new home. Your agent will use this list to find homes for you to tour.
Step 6: Making an Offer
Once you've found the right home, your real estate agent will help you determine the best price to offer for the home. In a competitive market you may not be the only one bidding and will want to stand out.
Step 7: Home Inspection and Appraisal
Once your offer is accepted, you will want to do a home inspection to ensure there are not any hidden issues with the home. Your Lender will arrange an appraisal to ensure that the property is worth the price that you have agreed to pay for it.
Step 8: Closing
Once you loan is approved your lender will schedule the closing which is the final step in purchasing a home. During closing, all mortgage documents are signed, and the property is legally transferred to you.