Buying a Home: Step by Step Through the Process
Friday, November 16th, 2007Buying a Home: Step by Step Through the Process
Buying a piece of real estate for the first time can seem overwhelming. There are so many things going on, with so many people involved, and it’s easy to get confused about what to do next. This article will explain how the process works.
#1. Pre-Approval With a Lender
The first thing you need to when buying a home is to get pre-approved for a home loan. This will involve filling out paperwork about your income and assets. Once you are pre-approved, you will know how much money you have to spend.
#2. Home Search Process
Start looking at homes. It’s better if you start the process already knowing what you want.
#3. Identify Home
Bingo! You’ve found what you’re looking for. The right home for you might be the first home you look at or the fortieth.
#4. Offer
Before making a formal offer, do your homework. Find out what houses in that particular neighborhood are selling for. Make the seller a fair offer — too little and you could risk alienating them, too much and you might end up paying more than you really have to. According to MoneyInstructor.com, when you make an offer, you will probably need to put up anywhere from 1% to 5% of the asking price in “earnest money.” Your offer will cover terms of the transaction that you want in addition to price, such as bring subject to inspection and your desired time for closing.
#5. Acceptance
After some negotiation back and forth, you and the seller will eventually agree to terms.