6 Steps to Buying a House

While buying a home can be an exciting time in your life, the process can be a bit intimidating when you don’t have all the information. While we can’t cover all the possible circumstances that may occur when purchasing a property, we can give you basic information on the six steps to buying a house.

Most mortgage lenders will want a credit score of at least 620 or higher. However, depending on the type of loan, you may get by with a lower credit score. For example, an FHA loan typically comes with a credit score requirement of 580. Keep in mind that it may be possible to get a loan even with a lower credit score, but you’ll end up with higher interest rates.

The first thing we recommend is that you secure a copy of your credit report from all three reporting agencies. Because of the Fair Credit Reporting Act everyone can receive one free report from Equifax, TransUnion, and Experian. Once you have your reports, you’ll want to check them closely for errors and over-due accounts. Report any errors right away and create a solid plan for eliminating delinquent accounts.

The amount of money you save will depend on several things. First, you’ll want to set a target price range for your purchase. Lenders usually require around 20% of the cost of the property as a down payment. On top of that amount, you’ll want to have money to cover any closing costs, repair costs, moving costs, and unexpected expenses. Creating a nice cushion for the down payment and other expenses will lessen your stress during the home buying process.

We’re happy that you found our website, and we would love to help you when it comes to finding the right home. To get a jump on the competition, you may want to consider signing up for a free account that allows you to save your property searches and set special criteria that you feel is important. You can also receive updates that alert you when a new home comes on the market. Of course, we’re here to help with that part, too! Once we know what you’re looking for in a house, we can narrow down the options and save you valuable time.

Don’t wait to get a mortgage loan pre-approval. Getting this done early in the home buying process can be beneficial in several ways. Having the pre-approval takes the guess work out of knowing which price ranges you should focus on when searching for homes. No one wants the disappointment of finding the perfect home and realizing too late that it’s out of the target price range.
In today’s real estate market, you may find yourself coming up against strong competition for a house. You’ll want the seller to favor your offer, and a good way to make this happen is to include your pre-approval. This pre-approval tells the seller that you can purchase the house and you are serious about it!

Here’s where we can step in and make the home buying process even easier for you. We’ll help you put together an offer that makes sense for the area, the home, and your budget. We handle all the leg work and negotiations. You’ll still get the nervous jitters while you wait to hear if your offer is accepted, but you won’t have to stress over the details of delivering an offer and receiving a response.

Once you make an offer, the ball is in the seller’s court. They can decide to accept, decline, or counter. If they counter, you’ll have a chance to accept the counter offer, decline, or try to negotiate. Once the offer is accepted, we move towards the inspections and the appraisal that are required by most lenders. If there are problems with an inspection or the appraisal, you’ll have a chance to review the offer and make a decision on going forward or asking for adjustments to the contract. If there are no problems, we’ll move forward and plan a closing day. On closing day, you’ll pay any money owed, sign paperwork, and, in most cases, receive the keys to your new home.