What’s the Process of Buying a Home?

November 18, 2022

Did you know that the quarterly homeownership rate is 65.4% so far in 2022? If you want to help that percentage grow, it’s time to start looking for your dream home.

Before getting started, it’s important to go through the right steps. What’s the process of buying a home?

Keep reading to find out.

Begin Planning

So, what’s the process of buying a home? It starts with planning.

Home buyers plan years before they meet with a lender. This allows them to learn about the buying process, determine goals, and save money.

When you plan out all of these things, you’ll be ready to choose a mortgage lender when the time comes. A lender will help you decide what home loan is right for you.

First-time home buyers typically go with a 30-year mortgage. There are other options to work with if you aren’t eligible for a conventional mortgage.

Once you find a lender, try to get a mortgage pre-approval. This will show how much home you qualify for. This won’t guarantee a mortgage approval but it can help.

Hire a Real Estate Agent

A real estate agent can help in the home buying process. They will find homes within your budget, communicate with the seller, and negotiate a home price.

A mortgage lender might recommend agents in your area. You’ll want a real estate agent that represents you instead of a dual agent that represents you and the seller.

When you have the right real estate agent, you can begin shopping for a new home. Refine your home search and tell your real estate agent what you are looking for so they can find the best options for you.

For example, if you are looking for new houses for sale, you’ll want to tell your real estate agent that.

Make an Offer

The shopping around process when you buy a home takes time. Once you find your dream house, a real estate agent will help you make an offer.

In your offer letter, you’ll want to include details like contingencies and your down payment. These are other elements to include in an offer letter:

  • Name of the seller
  • Address of the property
  • Names of the people on the title
  • Any concessions you’re requesting
  • List of fees and closing costs
  • Preferred move-in date

Real estate laws vary depending on the state you live in. You might need to include additional information but a real estate agent will be able to confirm this for you.

Loan Processing and Underwriting

Loan processors will go through your application to ensure you have full mortgage approval. The underwriter will verify the mortgage application so that you can go through other closing processes.

You’ll then undergo a home appraisal and inspection from a third party. This is required for a home purchase or sale.

After the reports are completed, you’ll receive a closing disclosure to review and finalize the loan. On closing day, you and the seller will sign the final paperwork and transfer the necessary funds.

What’s the Process of Buying a Home? Explained

Knowing what’s the process of buying a home will help you become a homeowner faster! Start planning ahead of time before meeting with a lender. Get pre-approved for a loan if you can.

From there hire a real estate agent who can show you homes and help you make an offer. After the loan processing and underwriting steps are done, you’ll be a homeowner.

For more informative articles like this, check out our blog.

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