The American dream includes acquiring one’s real estate. Those who have never been through the process of “buying real estate” before…
Prior approval is step one. Talk to a seasoned mortgage lender first, regardless of whether you believe you can buy a home, are worried about making a sizable down payment, or have poor credit. Their role is to assist you in repairing your credit, determining how much you can pay, and facilitating the process. If a down payment is required (it might not be! For example, if you wish to spend $X each month, they can turn that into a purchase price of $Y by negotiating with sellers that accept lower down payments (such as $0, $500, or 5%). They can recommend a credit repair service or provide you with advice and assistance if you need it.
Meeting with a mortgage lender will result in a pre-approval letter. The listing agent (the one representing the sellers of the house you wish to buy) calls them and finds out if you have the funds to close on purchasing the property, despite the casual appearance. You should then take this letter to a real estate agent or Realtor (R) (a Realtor is a real estate agent who abides by a code of ethics; for all intents and purposes, they are interchangeable. However, it would be best to prioritize working with a Realtor(R) due to their higher level of accountability and professionalism). This is the second phase of purchasing a property.
Next, we go to the best part: shopping! Step 3 of the real estate buying process often entails browsing online listings, driving about potential communities, and contacting an agent when you find a house or neighborhood that interests you. Don’t worry too much about finding the perfect home right away; look at a few options to get a feel for what you like and don’t like. While the specifications of a home (number of bedrooms, square footage, etc.) may look the same on paper or a computer screen as they do in real life, the “bones” of a house, its layout, and its materials might be very different. Tell your agent what you like and don’t like about each home you visit. After seeing each potential house, doing this can help you and your agent zero in on the features you need and eliminate the ones you don’t. This is the third step in the real estate purchase process, and it’s the one that requires the most effort. If a house, condo, or lot seems fine on paper but feels wrong in practice, that’s fine. Real estate is an emotional investment, and you should follow your instinct. When something isn’t quite right, it’s probably because it brings back bad memories of a previous residence, and many individuals end up purchasing a house. After all, it reminds them of the one they grew up in.
Finding the perfect home is the most thrilling part of the home-buying process. Just let your broker know that you have a good feeling about this property and would want to make an offer. It’s the agent’s job to negotiate, and since they get paid by the seller, it won’t cost you anything to have them do it. You can now call the mortgage lender to let them know you’re ready to make an offer on a property and provide them with the total amount you’re willing to spend on the down payment and closing costs. They can give you a more precise mortgage payment, after which you can offer your agent a choice of prices, beginning with a “walk-away” option. The real estate agent representing you will be well-versed in the customs and tactics of the local market, able to spot competing offers, etc. After that, the request will be taken up, rejected, or countered.
Closing the deal on a piece of real estate can be a nerve-wracking experience. When your offer is approved, a two-step process begins with escrow, under contract, or closing. When the seller starts packing up their life, it’s a sign that they’re serious about closing the purchase and that you should be too. Buyer’s remorse is usual and should be expected about a week after completing; if it does occur, try to remind yourself why you like the house and picture yourself happily living there. Also, the closing date is an estimate and may appear a few days earlier or later, depending on various factors. The typical closing time is between 30 and 45 days. On day 25 or 29, depending on your state, you’ll sign a new loan, and on day 30 (or 45, depending on your contract length), you can move in. You’ll sign a loan agreement and receive the keys, while the seller will receive payment (and maybe have their current mortgage paid off). This will be a legally binding contract for the bank on which interest and principal will be accrued. The transaction is finalized, and you become the home’s legal owner when the recording occurs; the first mortgage payment is typically due within six weeks after the recording.
Investing in property is exciting and can significantly alter one’s standard of living. Buying a home is a substantial financial commitment for most Americans, but history shows that it pays off, even in down markets, because of inflation, if not outright gain. Your descendants (or you, in your dotage) will reflect on your first real estate purchase as “cheap,” just as your grandparents did when they spent 15 cents for coffee and bought a house. There was a time when the average annual income was only $1,200, but people could still own $5,000 homes. Once you leap homeownership, you’ll be building more than just riches. You’ll be making a lifetime of memories, too.
Roger V maintains [http://BuyingRealEstate.ME], a hub for homebuyers that includes a map search, free videos and reports, a local agent locator, and other valuable tools. Roger is an expert in the real estate industry who has worked in mortgage lending, as an agent, and online marketing.