5 Steps For Buying A Home
A Step-By-Step Guide For Buying A Home
The home buying process can seem complicated and overwhelming for first-time home buyers and experienced home buyers alike. These five steps will help prepare you for what to expect as you purchase your new home.
1. Get your finances in order. Pay down or completely pay off any credit card debt. While looking for a home don’t make any major purchases. Save for a down payment. For the very best terms you may need a 20% down payment, but certain mortgages may require as little as 10%, 5%, or 0% (e.g. VA loans). Check your credit score. The higher your score the lower the interest rate you can qualify for, and be sure to dispute any negative incorrect information.
2. Get a loan pre-approval prior to shopping for a home. Don’t just get a pre-qualification. A pre-qualification is fine for getting an estimate on how much home you can afford, however it won’t do you much good once you start shopping around for a home. A pre-approval goes one step further by verifying your financial information. The lender will then provide you with a conditional commitment for an exact loan amount.
3. Hire a REALTOR®. A good REALTOR will help you navigate the home buying process, schedule showings, negotiate with sellers on your behalf, and help you every step of the way through the close of escrow. Contracts can be very confusing. Having a knowledgable REALTOR who has your best interest in mind can save you time and money.
The best place to find a Realtor is through referrals from family and friends. You can also attend open houses and check reviews. And always interview the agent to see if you’re a good fit.
Keep in mind there is a big difference between a real estate agent and a REALTOR. The latter is a member of the National Association of REALTORS®, and adheres to a strict code of ethics. Think of a REALTOR as an agent who has voluntarily agreed to abide to the code of ethics designed to protect the public.
4. Visit homes in person. Go to open houses and ask your Realtor to schedule showings for houses you’re interested in.
5. Make an offer. Your REALTOR will guide you with this by looking at comparable homes, which will help you make an informed offer. Your agent will also help you with meeting the all-important deadlines such as home inspection, appraisal, and final mortgage approval.
(Lou Serrano is a REALTOR® residing in San Dimas, CA. His number one priority is putting the needs of his clients above his own., and always treats his clients with utmost respect, diligence, and professionalism. If you’re looking to buy or sell in Southern CA, please reach out for a free consultation.)
