Home Buying Process :
Buying a home can be an exciting as well as stressful affair especially for first time home buyers, because they experience a wide range of emotions during the course of the buying process. Here is a simple step-by-step description of the entire home buying process.
Step -1: Getting your Credit Pre-Approved
Getting your credit pre-approved through a mortgage company means obtaining a loan commitment from the mortgage company for up to a certain amount based on an evaluation of your credit, income, assets, and debts. Although a credit pre-approval does not include information about the property that you plan to purchase, it makes home hunting more efficient by narrowing down your attention to focus only on those homes that are within your price range. It lets the seller know that you are a qualified buyer and also ensures speedy completion of your transaction.
Step – 2: Find the Right Home
The buyer must keep an open mind and focus on the things that are important such as safety, good schools in the vicinity, proximity to the market, play grounds (in case there are young children in the family) and places for unwinding such as parks or other entertainment options near the home.
Step – 3: Deciding on an Offer Price
The buyer can benefit a lot by studying and comparing a list of home sales in the neighbourhood to get a general idea of the price range in that area. Based on factors such as the condition of the house (the amount of repairs or renovations required), the market situation (in locations where there are surplus homes for sale than there are buyers, the real estate prices are bound to be much lower), and the budget (a credit pre-approval tells you how much loan amount you are eligible to borrow for purchasing your home), the buyer can make an offer. It is advisable to get the home inspected by a qualified inspector before you make your final decision to purchase the home. He will examine the exterior structural components (such as the foundation and roof), interior structural components (such as the basement, attic, flooring, and ceilings), and other major systems in the home (such as the heating and cooling system, electrical wirings, and plumbing) and record any problems in his inspection report, which will be immensely helpful while negotiating the price of the home.
Step – 4: Closing the Deal
The final step of home buying is closing wherein the buyer pays the seller, in the presence of an attorney, the closing agent, mortgage company representative, realtor, and the title company representative. It involves a lot of paper work and the buyer will need to review and sign a lot of documents. After settling all the closing costs and signing all the relevant documents, the keys of the home are handed over to the buyer.
