Buying a home can be the most exciting purchase many people make in their lifetime. Although buying a home can be exciting, it can be challenging at the same time. To become a successful homeowner you need commitment when it comes to planning and learning about homeownership. It’s important to have the right guidance and connections before you purchase a home. Purchasing a home is a big personal and financial decision, so let Marsh Landing Realty ensure you find the right one to compliment your lifestyle. Below we go into depth about the home-buying process and what you need to know.

Finances

One of the most important steps for every home buyer is figuring out finances. Buying a new home requires a mortgage and in order to get a mortgage, you will need a down payment. It is smart to look for homes that cost no more than three to five times your annual household income and have about 20% set aside to contribute to a down payment to avoid added fees. If you can’t put that much down, don’t worry, your down payment can be lower for certain types of mortgages. To get prequalified for a mortgage, you have to provide some financial information to your mortgage banker, such as amount in savings, income, and investments. After you get prequalified, you can get pre-approved for credit.

Credit Score

Your credit score needs to be decent in order to purchase a home. This three-digit number tells a lender they can rely on you to make your monthly payments on time.. In order to get pre-approved for credit, you have to provide financial documents such as W-2 statements, paycheck stubs, and bank account statements. Providing this information will allow your lender to verify your financial status and credit to then decide whether or not to loan you the money and at what interest rate. If you have an unsatisfactory credit score and financial status, you’re at risk of getting a loan with a bad interest rate or even not receiving a loan at all. It’s important to know your credit score, check it regularly, and what range is best to fall in when considering making large purchases, such as a new home. 

Real Estate Agents

If you want someone to help you find the right house, negotiate a great deal and explain everything you need to know about the home-buying process, then you need a real estate agent by your side! Real estate agents are important partners for you and will give you all the right information on homes and neighborhoods that aren’t that accessible to the public. Using the help of a real estate agent doesn’t cost you anything because they are compensated from the commission paid by the seller of the home. Marsh Landing Realty real estate agents have an extensive network, experience, and access to the latest real estate marketing tools. If you are looking to work with a team that is not only experienced and knowledgeable, but dedicated, then Marsh Landing Realty is right for you.

Shop for a Home

This is the fun part of the process! Once you receive the help of a real estate agent, you will soon be touring homes in your price range that meet your unique needs and wants. You will probably see a lot of houses, so it might be smart to take notes and photos to remember what you love (or don’t love) about each home. Keeping a  list of your needs and wants will help you significantly when it comes to narrowing down your options. Although the inside of the home is very important, it is also important to check out the neighborhood itself and make a note on how neighbors are maintaining their homes, traffic, parking, and convenience to shopping, schools, and restaurants. This might be a short or long process, but take as much time as you need to find the perfect home. Once you find the one you want, allow your real estate agent to use their negotiating skills to place an offer that is comparable to the value of the other homes in the neighborhood. If your offer is accepted, the house will go into escrow in order to complete the last few steps in the home-buying process. 

Appraisal & Inspection

An appraiser will soon come in to have the home appraised. Appraisers are meant to provide an independent estimate of the value of the house. This is where the lender checks out the house to make sure it’s a good investment. Around the same time a home inspector will evaluate the home as well. A home inspection is where you hire a home inspector to see if there are any issues that will make you second-guess your decision on whether to move forward or not with closing on the home. Termites, mold, or an old roof are just a few things an inspector may find that could leave you second guessing the purchases. There will be smaller issues as well that may appear though, in which you can rely on your real estate agent to help negotiate getting fixed before closing. This is where their expertise can really be of benefit to you. 

Closing

After you have the home appraised and inspected and everything has been negotiated and approved, then it is time to coordinate the paperwork and get ready to close the sale. Paperwork is very critical to closing a property deal. Despite there being a stack of papers filled with complex legal terms, you should read all of it yourself. If there comes a time where you don’t understand something, it is advisable to consult your real estate agent and/or a real estate attorney. It’s worth the time and effort to understand the paperwork rather than hurrying up and signing. Once you sign all the paperwork at closing, it might take a few days for your loan to be funded. Closing day is the day you get the keys to your new home – and pay all the various parties involved such as your down payment, closing costs, and extra fees. After you are done with closing, then you are officially a new homeowner! Congratulations!

There are many benefits of becoming a homeowner. Let Marsh Landing Realty assist you in the process of buying a home. Whether you’re purchasing your first home, ready for an upgrade or choosing to downsize, we want to do whatever it takes to make sure you find the home of your dreams. Visit our website at https://secure.sdjax.com/~mlccrealty2/ or call us at (904) 285-6514 to find your home today!