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The Home Buying Process Your 14 Point Path To Success
remember going through my
first home buying process. Some people put this step later
I also remember the in the home buying process. But
confusion and frustration of not it belongs at the beginning.
having a "big picture" in my mind Before you start looking at
of how the process should work. houses and shopping for
That's why I'm giving you what I mortgages, you need to take a
never had, a start-to-finish road good look at your financial
map of the process. situation. You can start by
ordering a copy of your credit
Home Buying Process - By the report, and reviewing it for
Numbers errors.
In reality, there's no way to 3. Make a home buying wish list
predict exactly how the process
will go for you. There are too Once you have an idea how much
many variables along the way. But you can afford, start writing
there's a general pattern to the down the things you'd like in a
process, and that's what we will house: style, size, features,
examine here. location, price, etc. Prioritize
each item as either a "must have"
1. Decide to buy a home or "would like to have."
It all starts with this spark. 4. Get pre-approved for a loan
And since you're reading this
article, we can assume you're Pre-approval is the process of
already past this point. applying for a loan and getting
approved for a certain amount
2. Conduct a financial before having a purchase
self-assessment agreement (contract). Having a
pre-approval letter also shows the asking price, the market,
sellers you’re serious about comparable sales in the area and
buying their house. other factors. Your offer might
be accepted, rejected or
5. Find a real estate agent countered. You might be the only
buyer, or you might have to
It's rarely a good idea to buy a compete with others. You won't
first home without professional know until the time comes, which
help. If you're an investor and is another reason to have an
you've purchased a half-dozen agent help you.
homes in the past, you might be
comfortable enough to go it 8. Request approval for the loan
alone. But when buying your first amount
home, it's in your best interest
to hire an agent. If the seller accepts your offer,
you must then go back to your
6. Begin House hunting chosen mortgage lender and submit
paperwork for loan approval. In
Now comes the fun part, the most cases, it's easiest to
house-hunting process. If you return to the lender who gave you
follow the steps I've outlined the pre-approval letter, but it's
here, you can shop confidently not mandatory.
(knowing that you have a
pre-approval letter, a price 9. Get a home appraisal
range, and an agent to represent
you). Your lender will require a home
appraisal to make sure the home
7. Make an offer is worth the price you've agreed
to pay. In the event that you
How much you offer will depend on can't make your mortgage
payments, the lender will
foreclose on the home and resell 12. Optional inspections
it. It's not a pleasant thought,
but it’s reality. So the home There are a number of other
appraisal is how the lender inspections you might want to
protects its own interests. have. But most of these are
optional, depending on what state
10. Get approved for the loan you live in. Among other things,
these include inspections for
If the house appraises at a value termites, radon and mold. If you
equal to your loan amount (and choose to have them, schedule
provided all other factors are them as early in the process
well and good), your mortgage (post-contract) as possible.
lender will then approve the
loan. 13. Final walk-through
11. Get a home inspection The final walk-through generally
takes place a day or two before
On average, home inspections cost closing. It's your opportunity to
between $300 and $600. That's a walk through the house to make
small price to pay for the peace sure all discrepancies found
of mind it brings. Get a home during the inspection have been
inspection as soon as possible fixed (if that was part of the
after the sellers accept your agreement). In most cases, it’s
offer, and make the contract also your first opportunity to
contingent upon the inspection. see the house without furniture.
That way, if the inspector finds
a problem you’re unwilling to 14. Closing / settlement
accept, you have a legal way out
of the contract. Closing (or settlement) is the
paperwork-heavy process that I hope this road map helps you go
transfers ownership of the home into the home buying process with
from seller to buyer. Like the a clearer picture in mind. Happy
other topics on this list, it home buying!
warrants an article all to
itself. For now, just know it’s * Copyright 2006, Brandon
the final step before you are Cornett.
handed the keys.
About the Author:
To learn more about the home buying process visit http://HomeBuyingInstitute.com, the Internet's largest library of home buying tips and articles. Visit http://www.homebuyinginstitute.com.
For daily home buying tips, vist HBI's blog at: http://www.homebuyinginstitute.com/homebuyingtips
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