Buying your first home is an amazing time that is full of new experiences. You’ll meet new people, learn different terminology, and spend a lot of time day dreaming about the perfect house. Before you move forward in the home buying process, check out these helpful tips on the 6 steps for buying a house.
Step One – Money in the Bank
You are aware that you’ll need a down payment to compliment your home mortgage loan unless you are fortunate enough to be able to pay cash for your purchase. What you may not know is that you will need to have cash on hand to pay things like the closing costs. The down payment is typically around 20 percent of the selling price of the property. The closing costs are approximately 2 – 8 perfect of the price of the property. Aside from those things, you will want a padding for unexpected fees and things you’ll need after you accept the keys to the house.
Step Two – Credit Check
You’ll want to make sure your credit tells a positive story about your reliability. The mortgage lender will take a close look at the information on your report and consider your credit score. It’s a good idea to check in with the three major reporting agencies. The Fair Credit Reporting Act allows for a free report annually. Take advantage of this and know exactly what your report says about you.
Step Three – Real Estate Agent
Find a reputable real estate agent before you move forward with the home buying process. They have the experience and knowledge you need to have a successful real estate transaction. They are skilled negotiators who are experts about the local area. Your real estate agent will listen to your needs and save you time by showing you houses that fit your wish list and price range.
Step Four – Mortgage Pre-Approval
Your credit is in top shape, you’ve saved some money, and you have a professional real estate agent on your side. This is the perfect time to visit your chosen home mortgage lender and apply for a pre-approval. This pre-approval is beneficial for a couple of reasons. It will let you know exactly how much house you can afford. This will keep you from searching outside of your target zone and getting disappointed later when you find out the house is just too expensive. The pre-approval letter could help you in the event of a bidding war. A seller will know that you are serious and can follow through by checking your pre-approval.
Step 5 – Wish List
This is a good time to sit down and make a wish list of what you expect to find in your perfect house. Put it all down on paper. Once you’ve made the initial list, go back through it and note the items that would be nice to have but are negotiable. Put a special mark beside the things that are not negotiable. Give this list to your real estate agent. This will help them focus on exactly what meets your needs.
Step Six – Stay Focused
While this is an exciting time that is full of emotional highs and lows, keep your balance. Don’t get swept up in the images created for you by sellers who are trying to present their homes in the best light. Look closely at the foundation, roof, systems, and the property. Talk to neighbors. Learn more about the schools. Research is important, and you want to do the proper amount before placing an offer.
Once you’ve gone through these steps, it will be time to place the offer and go through any negotiations. There will be inspections and an appraisal. Closing day is when you’ll sign paperwork, pay any fees, and take possession of your new home.
Your best source for information about Santa Clara County is your real estate agent. Give Greg Pedone a call today at 408-234-0145 to learn more about the local area, discuss selling your house, or to set up a tour of available homes for sale.