Buying a Home - Real Estate, the Home Buying Process

Buying a Home

Home buying is one of the most important financial decisions you can make. With the proper resources, home buying can be an easier process. Let’s learn the basics of home buying in seven easy steps.

Step 1: Identify My Home Needs

cost of your home

You have now by process of elimination finalized a list of what your home should include from the number of rooms to the type of floors and everything in between. It is now time to crunch the numbers to see what is within your budget. Use our tools and mortgage calculators for help. Now is the time to take the next step. Many people try to understand the difference between pre-qualified and pre-approved mortgages. Let’s take a look:

Pre-qualified

Pre-approval

real estate agent and seller that your are serious about your home purchase

mortgage pre-approval as leverage when negotiating for a home

Step 3: Shopping for My Home

You have decided which community you would like to reside in and have solidified your home price range; it is now time to start looking for your home

Your search:

Step 4: This is My Offer

You have found the home you wanted; now it is time to make the offer.

Step 5: My Home Inspection

Once you and the seller have agreed upon a price, it is time for the extensive home inspection. Some of the inspections to be considered are:

There are some basic inspections you should do depending on your form of financing. It is upto you how the extensive is, sometimes 2 or 3 separate inspections can be performed.

I cannot highlight enough the critical importance of having an extensive inspection. It is better not to skimp on a few hundred dollars on a home inspection and pay thousands later on in home repairs that could have been avoided if discovered during a thorough inspection. The offer of purchase should be contingent upon a satisfactory home inspection report. When it comes to the inspection have the final say and not let anyone dissuade you from carrying it forward to your satisfaction.

Also, if you have a proper inspection and move into the house, the inspection can give you an out from the legal contract. If the damage cannot be compensated for monetarily or repaired to professional standards, you still may have the option to cancel the contract. Remember inspections are not there to reveal cosmetic deficiencies but material ones that can affect livability, resale value or safety.

Also, don’t wait till you have placed an offer on the table to look for an inspector. The contract may have time limits designating when the home inspection must be completed by (usually 7 to 14 days). If you search for an inspector after the offer, you may be left with two choices:

Neither is a palatable option.

Step 6: My Home Insurance

While having your inspection done check into home insurance or home protection plans. What does home insurance do? Home insurance policies can be purchased by the buyer or seller and help protect against unexpected costs or home repairs during the listing period or in the initial years after a home has been purchased.

Also, having a higher deductible can lower your insurance premium.

Step 7: My Home Closing

You are now one step closer to your new home, only the final closing stands before you. Make sure you have the necessary items for the closing;

Now it’s official, it is your new home. It is time to move in.