“10 Steps to Buying a House”
“10 Steps to Buying a House”
Buying a house is very challenging at times, and would take a lot from your time and effort. By following this guide, your life would be much easier.
Step 1: Check your credit score
Based on your credit report, lenders assign you a credit score that ranges between 350-850, the higher the score, the lower the interest paid. The scores are based on:
? Payment history: Did you pay your bills on time?
? Amounts owed: What is your overall debt?
? Length of credit history: How long have you been borrowing money? Mortgage lenders like to see a long credit history.
? Types of credit: Lenders like to see a different types of credit such as bank cards, car loans and student loans.
Your score should always be high so you can be safe, >700.
Step 2: How much can you afford?
How much are you willing to pay each month? To make your life easier, you can use the Affordability calculator in order to find out how much you’re able to afford, and how much you’re willing to pay according to that.
Step 3: Find the perfect real estate agent
Real estate agents are important partners when you're purchasing or selling a house. Real estate agents can give you accommodating data on homes and neighborhoods that isn't available to people in general. Their insight into the home purchasing process and recognition with the region you need to live in can be valuable. The best part is that it doesn't cost you anything to utilize a specialist they're already paid from the commission by the merchant of the house. You should check reviews online in order to choose the one that has the best reviews and ratings. You can also meet some agents online, and ask some questions before going further with your process.
Step 4: Get Pre-approved by a lender
You need to provide some financial information to your lender, such as your income and the amount of savings and investments you have. Then, they will check your credit score and assess your financial situation. Then, the lender will give you a letter that states how much they will lend you based on your credit score, the higher the score, the lower the interest. You don’t have to take the decision right away. When you officially decide that you’re buying a house, it’s preferable to check out at least three different lenders, and compare the interest rates and fees, then choose the best one that suits you.
Step 5: Start looking at homes
By now, you know what your wants and needs really are, and it’s time to search for a house! The best way to remember all the details, you should write down the pros and cons of each house. Make sure to check out all the little details, such as:
- Electrical systems
- Open and close the windows to make sure they’re fine
- Check the plumbing by running the water
- Is it crowded around the area?
- Are the neighbors the kind of people you would like to be around?
- Is there enough parking for the family?
- Is it a convenient location? Next to the schools, work, malls?
By then, you must take the right choice!
Step 6: Make an offer:
After you choose the house, it’s time to negotiate with your lender for the offer that they will give you. They know how the market works, and they will choose the best fit for you. Once you and the seller reach to an agreement, the house will go into escrow, which is all the time that will take to continue the remaining steps. After you submit the offer, you will get an answer of a “yes” or a “no”. If you get a “yes”, it means you’re approved, and you can move on to the next step, and if not, you might have to go back to step 5 again.
Step 7: Home Inspection
Your real estate will help you arrange the home inspections, incase anything needs change or fixing. This offer protects you by giving you another chance to negotiate weather you want to change the offer, or withdraw it without penalty if the inspection reveals damage. Both you and the seller will get a report on the inspector’s findings. You can then decide with the seller if you want to fix anything.
Step 8: Get insurance
If you already own a house, call your insurance company, and let them know that you are changing houses, then they will handle the rest. And if you don’t have an insurance company, its time to search for one because it’s required.
Step 9: Paperwork
There a lot of papers that need to be filled. Your lender will arrange with a company to take care of all of them, so you can be relieved from all the stress.
Step 10: Close the sale
This is the big day! All you have to do is read the papers and sign. Here you are, ready to move in!
In the end, you should weigh your options and decide which house makes most sense to your style of life.
Please feel free to contact one of our advisors to help you get a loan for your new house. 855.424.0232
Your team at American Lending