Think You Are Ready to Buy a Home? Here Are Steps to Follow.
Knowledge is power! The steps listed below will empower and prepare you for the home buying
process.
Step One: Check Your Credit
Your FICO score is used by lenders to determine if you qualify to purchase and what interest
rate you will receive. The FHA guidelines state that the lowest interest rate needed to purchase
is a 580. Most lenders however, require a score of 620. The higher your score, the better your
loan terms will be. You can get your free credit report every 12 months from
annualcreditreport.com authorized by federal law.
Step Two: Find a Lender
There are many banks, credit unions, and mortgage companies to choose from. Shop around
and compare the loan products each offers, to find the best fit for you. A good loan officer will
take the time to explain the products offered by their company, again knowledge is power!
Step Three: You are Pre-Approved!
Your loan pre-approval says to your Realtor and home sellers that you are financially solid. An
offer backed by a loan pre-approval speaks volumes about your ability to purchase, most
seller’s will not consider an offer without one.
Step Four: Find a Realtor
A buyer’s agent is what you will need. The seller will be represented by a seller’s agent. The
buyer’s agent represents you. Your agent will work to make sure your interests are protected
and the deal is balanced. It is a good idea to interview a few agents to find the right one for you.
(FYI, buyers do not pay agent commissions).
Step Five: Find a Home
Now you are ready to start house hunting! The internet has made home shopping easier, but
online shopping can cause sensory overload. The best thing to do is talk with your agent about
the features you like and the areas you are most interested in. Write down a needs vs. wants
list. Doing these things will help to narrow your search.
Step Six: Make Your Offer
Your real estate agent knows the market and will help you determine a strong offer, based on
recently sold homes in the area. This data will reveal if the asking price is a reasonable one.
Step Seven: You Are Under Contract! Home Inspection/Home Appraisal
Buying a home for most people is one of the biggest investments they will ever make. That is
why it is so very important to get a professional evaluation of the home’s condition and value.
The lender will order an appraisal to get a professional valuation of the home. The appraisal is
required by the lender to secure your financing and it protects you and the mortgage company
by making sure the home’s value matches the agreed upon sales price.
A home inspection will reveal any underlying issues with the home. Having the home inspected
is well with the peace of mind it provides. Your agent should be able to recommend several
licensed inspectors or you may choose your own.
Step Eight: Closing the Deal
The closing table is where the magic happens. Closings usually take place at the title company
or attorney’s office.
This final step of the home buying process is when the deed, note, and title
documents are signed. Once the paperwork is executed and funds are released, you will
receive the keys to your new home!
Let’s Talk!
If you are considering buying or selling your home, The Superior Agent can help! I am here to
answer any questions you may have. Fill out the form below and I will personally reach out to
you and provide you with a free phone consultation.