It’s both exciting and terrifying! Because it is such a big decision, you want to make sure that every step you take has been carefully thought out.
Without planning and research, you could end up paying thousands more at closing. That’s why we recommend that every buyer get some guidance before plunging head long into buying a home.
And that means…
House Hunt with a Real Estate Agent
When you’re seriously ready to buy, partner with a real estate professional, a buyer’s agent realtor.
A buyer’s agent is your advocate to guide you through every step of the homebuying process.
From finding the right property for you, crafting a winning offer to negotiating home repairs from a home inspection and closing, a buyer’s agent is looking out for your best interest throughout the entire process.
Don’t buy a home without one!
Know Your Budget and Don’t Understate It
Your realtor is there to help you purchase the house that’s in your price range. She does not want to sell you a home you can’t afford. But for some reason, there are buyers who believe agents want to sell them more house than they can afford.
Nothing could be further from the truth. Be upfront with what you can buy and then let your agent help you find the right home for you.
Meet with More Than One Mortgage Lender
Getting pre-approval for a mortgage requires a mountain of paperwork! You’ll need to:
- Meet with the lender
- Get 2 years of W-2 forms
- Two years of tax returns
- Proof of down payment funds
This is why most buyers only apply with one mortgage lender. However, getting at least three quotes allows you to review your options so that you get the best loan option for you.
You want a lender that asks you probing questions, listens to you, and then offers intelligent options for you.
Buy the Right House, Not the Perfect House
News flash. There is no such thing as the perfect house! Every house will have certain features that you don’t particularly like. That's why it’s important to have a list of “must-haves” and “wants” when shopping.
This allows you to focus on the features that are really important to you.
Make A Good Offer
If you’re ready to buy, make sure your offer reflects that desire. Forget about low balling. Inman.com, a real estate website, found that the third biggest mistake buyers make is offering too little for a property.
If you offend the seller with such an offer, you might not get a second chance. Trust your agent to guide you into writing a winning offer.
Step Away from Making Big Purchases Before Closing
They want to make sure your credit has not changed since loan pre-approval.
If big purchases are made, it could jeopardize your loan approval.
Budget for Closing Costs
You not only need down payment money, but you’ll need money to cover closing costs. Closing costs usually run anywhere from 2% to 7% of the home’s purchase price.
When you meet with your mortgage lender, she should go over all of the expenditures and give you an estimate of your closing costs.
Include Homeowner’s Title Insurance When Buying A Home
Title insurance is required for the lender but not the seller. Your lender wants to secure their investment. Make sure you secure your own investment as well. A one-time payment of homeowner’s title insurance protects you from many potential common legal problems.
Buying a home is a big decision that requires thought and preparation. When you’re ready to close on your new home, consider turning to the pros at Lilly Title & Settlement. We’ll easily handle both your title insurance and closing, keeping you apprised during the process every step of the way!