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5 Steps To Buying Your New Home
5 Steps to Buying Your New Home!
1. The Big Decision!
Purchasing a home will most likely be the biggest transaction in your life! You will become a home owner, responsible for not only the mortgage payment, but taxes, insurance, repairs, and more! All of these are factors that should be considered when deciding to switch from renting to owning.
Additional items to consider include:
a) Location – can you see yourself living in the area you are looking to buy in for at least 3-5 years?
b) Family Size – Are you planning on increasing the size of your family in the near future?
c) How does the mortgage payment compare to the rental payment?
d) How does the size of an affordable home compare with your current rental?
2. Reviewing Your Financial Options:
When purchasing a home, out of pocket expenses can add up quick at the time of closing. Examples of expenses you can plan on running into include but are not limited to:
a) Down Payment – Usually 3.5% - 20% of the purchase price of the home. However, there are several down payment and closing costs assistance programs available, and should be
heavily investigated prior to submitting an offer for purchase.
b) Home Inspection – A home inspection is not mandatory, but heavily recommended when purchasing a home. Home Inspections generally range from $250 - $350. Home inspectors will
be able to locate items of concern which your Realtor will partner with the Sellers on repairing, replacing, or crediting you for the issue.
c) Appraisal – The appraisal is used to determine the home’s value, and is completed by the lender who assisting the Buyer with financing. Appraisals usually run between $400 - $650.
d) Escrow Fees, Loan Origination Fees, and Taxes are also Buyer fees that will need to be taken care of prior to close of escrow.
3. Obtain a Pre-Approved Mortgage
Applying for a pre-approved mortgage involves speaking with a licensed loan officer and having them check your credit score, review your income statements, and create a pre-approval letter detailing your purchase power, and estimated mortgage rate. Pre-Approvals can be completed in as little as 24 hours.
The pre-approval letter is basically a promise from the lender, that they can qualify you for a mortgage to purchase a home. Typically, pre-approval letters are good for 60-120 days.
4. Shop for a Home
After obtaining the pre-approval letter and your target purchase amount, we will begin the search for your new home! The first item of business, compile a list of WANTS and NEEDS that you are looking for in your new home. For example:
a) Number of bedrooms?
b) Number of bathrooms?
c) Square footage?
d) Open Floor Plan?
g) Private backyard?
When we begin to view homes, you will be supplied with a Home Viewing Grade Report sheet for each home. These forms will allow you to grade the home as well as take detailed notes for you to look back on and review at a later time.
5. Make The Deal Happen!
Our job, is to find you your dream home, at a great value, and #MakeItHappen in a reasonable amount of time! That is why our motto is MAKE IT HAPPEN! We sell houses! It’s what we do! We will negotiate pricing, terms, upgrades, credits, as well as repairs. Our job isn’t done until you have those keys in hand, WITH A SMILE!
If you or someone you know, is interested in purchasing or selling a home, we’d love the opportunity to earn your business. Contact Us at 1-800-585-1690, or email us directly at ParkerMakesItHappen@gmail.com.
Hello, My name is Alexander Parker, Residential Sales and Marketing Specialist with Elite Realty Group at RE/MAX Real Pros. Our Brokerage Team is #1 ranked in Southern California. We list and help pur....