Despite the changes that have taken place in the real estate and finance sectors over the last few years, the property sector remains robust, as evidenced by the strong demand for properties.
Certainly, there are some families that are reluctant to face the idea of buying a home, preferring to rent instead.
But if you and your spouse have decided that buying a home is the right decision for you, there are a few steps in the home buying process that you need to be acquainted with before you actually search for properties for sale.
For certain, buying your first home can be a daunting experience, especially because you are investing a massive amount of money. You are making a decision that will affect your finances over the long term.
What is the Home Buying Process Like?
Here’s an overview of the process.
Once you have decided that buying a home is the best option for your family, the first step that you will need to do is to search for suitable properties based on your budget as well as your family’s needs.
Initially, you might want to check listings, both online and offline, and drive around the neighborhoods that interest you. You may also enlist the aid of a real estate agent to help you in searching for properties.
Get Your Finances Together
While you are searching for homes that interest you, you can also check available financing options. If you are buying a home for the first time, there are a few options that you can consider, including first time home buyer programs.
You should also check your IRA. Each person can withdraw a $10,000 lifetime amount from his or her IRA without incurring penalties. A couple can withdraw as much as $20,000 which can be used for paying for their first home.
Take note that the money withdrawn should be used within 120 days. Otherwise, you will be given a 10 percent penalty.
In searching for financing options, you have to do a little leg work in order to ensure that you get the best financing deal.Even if you qualify for a loan, it is a good idea to have a backup lender should your initial application fall through.
Ideally, you should make an offer to a home seller when your application for a loan has been approved. This signals to the seller that you are serious with your offer.
In making an offer, it is best to ask your property agent about how much you should offer. Your agent will then forward your offer to his counterpart.
The seller can either accept your offer or make a counter-offer. If the seller makes a counter-offer, you can either accept that offer or negotiate and make counter-offers until mutually acceptable terms are made.
Once an agreement has been reached between you and the seller, you need to make a deposit.
Don’t Forget to Inspect Before Signing
The process now becomes what is called an escrow or a period of time where the property is taken off the market. In turn, you are contractually bound to purchase the home unless you find serious issues in it.
And speaking of serious issues, one important step that you should take is to hire professionals to conduct an inspection of the property.
Even if the house looks good from your end, getting an objective and impartial third party to conduct an inspection will ensure that no serious issue is left unseen.
These serious issues can translate to great costs later on. If there are serious flaws that the seller did not disclose, you can take back your deposit and withdraw your offer to buy the home.
If you decide to push through with the sale, you will then have to complete a lot of paperwork. At this point, the home will be appraised by your lender.
You will also need to check if the title is clean and to complete the paperwork associated with the mortgage.
Wether you’re looking for your first home or fifth, Golden Eagle Mortgage will make your home buying process nice and simple. Click here to contact a representative today!