What are all the steps involved in buying a house?
Answer:
Buying a house involves many key steps, but step 1, 2 & 3 are not necessarily in this order. For example, if you found a good agent first, they will likely suggest you talk to a local lender who will also help with step 1. The lender can help financially prepare a buyer for home ownership. So the first 3 steps kind of go hand in hand. Step 4 shouldn’t be started until 1,2 & 3 are complete.
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Assess Your Finances: Check your credit score, determine your budget, and save for a down payment.
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Get Pre-Approved for a Mortgage: Obtain pre-approval from a lender to understand how much you can borrow and what your monthly payment will look like.
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Find a Real Estate Agent: Choose a qualified real estate agent to guide you through the process.
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Start House Hunting: Search for homes within your budget and desired location. Attend open houses and tours.
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Make an Offer: Once you find a home, your agent will help you make a competitive offer.
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Negotiate and Sign the Contract: Negotiate terms with the seller. Once agreed, sign the purchase agreement.
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Get a Home Inspection: Hire a professional to inspect the home for any potential issues.
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Secure Financing: Finalize your mortgage application and secure your financing.
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Appraisal and Underwriting: The lender will appraise the home and complete the underwriting process.
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Close the Sale: Review and sign all closing documents, pay closing costs, and finalize the purchase.
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Move In: Once the sale is closed and the deed is recorded, you can move into your new home.
What's the first step of buying a home?
Answer:
Although almost all new buyers want to start off with the fun, exciting part, searching on-line real estate sites for homes, the actual best first step is determining their financial capability. By this, I mean consulting with a financial institution (bank, credit union, mortgage co, etc...) to ascertain exactly what the buyer can afford/qualify for a mortgage loan. This is called getting 'pre-qualified' and is followed by a pre-qualification letter from the financial institution that will need to be submitted with any future offers on properties...something that sellers are demanding these days to even consider the offer.
How long will it take to sell my house?
Answer:
The timeframe in selling your home depends on important factors:
Is your home “show ready”?
Working with a Professional Realtor that has expertise guiding you in preparing your house for market such as, cleaning, staging, repairing items needed, professional photos, etc can decrease time on market.
Is it priced correctly for market?
Comprehensive research of houses, like yours, that have sold recently in your area will determine market value. Overpriced homes will stay on market longer.
Is it being marketed well?
We, at 616 REALTY, have excellent resources for exposing your house to the market utilizing print, electronic, social media, etc. Good exposure = good impressions and increased engagement
Is it accessible?
Flexibility is imperative when it comes to cooperating with other Real Estate Agents in allowing access to show your house.
These are just a few things to consider for the time frame on how long your home takes to sell. It is a partnership between the homeowner and a professional Realtor to determine the right steps to take in order to achieve the expected result.
What are some government programs that can help with buying a home?
Answer:
Have you been wondering what government programs are available to help you purchase a home? Let’s dig into this question together.
First, let’s talk about FHA loans. What is an FHA loan? How does it work and who is eligible to use it? An FHA loan is a federally insured loan that can be a great option for many reasons, but the biggest draw is the low down payment requirement. The minimum credit score to qualify for an FHA loan is typically around 580, although some lenders might require a higher score.
Next, let’s discuss MSHDA down payment assistance. MSHDA down payment assistance is actually a government loan/lien that will need to be repaid by the buyer if they choose to move in the future (ask your lender for details). The advantage here is for buyers who don’t have a large sum saved towards their down payment. An MSHDA loan can be used in combination with traditional financing in order to write a more attractive offer. Be sure to consult with your lender to determine how much you qualify for. The range is generally $7,500-$10,000 towards your down payment and closing costs.
What is a VA loan? I’m glad you asked! If you are a qualifying veteran or active-duty service member, you can leverage 0% down payment and no PMI (Private Mortgage Insurance), and to qualify you’ll need a minimum credit score of around 620, though some lenders may approve lower scores. This program is an excellent way to become a homeowner with fewer out-of-pocket costs.
Last but certainly not least is a Rural Development loan, more commonly referred to as USDA. This loan option is available for use in certain areas that are pre-determined as “rural.” Your realtor and lender will help you decide if this is an option where you are searching. With this product, you will enjoy 0% down, and to qualify you would need a minimum credit score of around 640.
If you or someone you know would like more information or guidance regarding any of the above-mentioned loan options, I am always accepting new clients and can certainly help you explore all of the possibilities that you could qualify for. Happy house hunting!
