Uncategorized September 19, 2023

HELP….What Are The Steps To Buying My New Home?

The Home Buying Process

When financing your first home purchase, the journey begins by contacting a lender if you’re not paying with cash. The lender will kickstart the process by assessing your credit and demystifying the loan procedure. Don’t hesitate to seek clarification by asking questions to grasp the process fully.

After the lender evaluates your credit score, the next step is selecting the appropriate loan type. Options include FHA loans for first-time buyers (with a 3.5% down payment), VA loans for military backgrounds, or conventional loans (requiring a larger down payment but featuring lower interest rates). Your lender will present you with the best loan option and your maximum buying power through pre-approval.

Once pre-approved, here are the subsequent steps:

  1. House Hunting: Your realtor will assist in this process. Explore neighborhoods, school districts, and home types. Conduct thorough research. When you find your desired home, it’s time to draft and present an offer to the seller.
  2. Making an Offer: Drafting an offer involves signing the contract and agency documents, attaching the lender’s pre-approval letter, proof of funds, and a $500 check made to Security First Title Company. This check will be held in escrow on your behalf, contributing to the purchase price at closing.
  3. Negotiating Terms: Negotiate various contract terms, including purchase price, financial aspects, the closing date, and the possibility of the seller covering a home warranty. Once all parties agree, the offer becomes a binding contract.
  4. Home Inspection: Schedule a property inspection, typically costing between $350 to $550, your responsibility. If repairs are needed, you can negotiate with the seller to cover them.
  5. Closing: Ensure all agreed-upon repairs are completed before the specified closing date. Confirm the lender’s readiness, and proceed to the closing, as stipulated in the contract.

If you have any inquiries, please feel free to ask. My objective is to navigate you through the buying process and secure the most favorable purchase price and terms.