What are the Basics of Buying a House?
Buying a house can be very stressful, after all its a lot of money and time committed to a mortgage. So the first step is to find a Realtor committed to easing the stress and handling the inevitable bumps that come along in the process. As your trusted expert, your Realtor will give you some options when it comes to the next step: choosing a lender. A lot of people get nervous here, but don’t. Your lender is committed to saying yes. If yes is not immediate a dedicated lender is going to give you a forecast of things you can do to elevate your credit score and debt to income ratio (DTI). Once your lender gets your pre-approval, it’s time to get organized and write down your must haves and wishlist.
This is the time that most future home owners adore, showings and tours. Because it’s the fun part of the process, sometimes customers jump the gun and utilize well known search engines to view possibilities in the desired areas. Realtors typically suggest getting a pre-approval before searching because it manages expectations. With a letter in hand, the future homeowner has an approved budget and that lessens the risk of falling in love with something outside of the budget. Once you find the one that you love the fun begins.
This is where your Realtor’s expertise shines. The Realtor is a manger of sorts. They write up the offer according to the desires of the future home buyer. The Realtor is there to lend advice, not make decisions. At times, your Realtor may have to advise you through market comps, multiple offers, contingencies, etc. After the offer is accepted, every professional starts to get the particulars ironed out in their own field.
- The future home owner submits the Earnest Money.
- The Lender starts to work the loan from pre approval to true approved.
- Your Realtor works through the due diligence: home inspection, pest inspection, negotiate repairs, etc.
- The insurance provider works to bind the policy.
- The Title company works to make sure the deed and title are clean and clear to be sold.
The Realtor is in constant communication with all parties and making sure the time table established in the contract is maintained.
A few days before closing, typically, your Realtor will suggest to have the utilities switched over so you do not experience temporary shut offs. Once you are clear to close, you schedule the final walk through. It is important to realize that this is not a negotiation period, or second inspection. The final walk through is to make sure the property is in the condition in which you agreed to buy it.
Finally, its closing day! Whether it’s a Real Estate Attorney or Title company there will be lots of papers to sign resulting in getting that reward you have been working towards for so long.
Thank you for taking the time to learn about the basics of buying a home. Want to achieve that dream home now? Everywhere the word Realtor is in this blog substitute it for Evelyn Hall. Give me a call and I would love to help you get to the closing table. Let’s do this!