The purchase of a home is the largest purchase most people make during their lifetime. We want to make each and every purchaser aware of the many mortgage options available to them prior to their purchase and closing date. You can save lot of time and make the process smoother by getting pre-approved for a mortgage. Pre-approval gives you the idea of mortgage amount you qualify and also monthly payment associated with getting buying the house.
What are the steps involves in Buying a house?
1. Pre – approved Mortgage
It is essential while planning to purchase a house because it helps you in setting your budget, which requires down payment proof (5% usually 10% if house is over $500,000) and the 1.5% for closing cost. You may need help from a mortgage professional that can help you get the right mortgage with all features you need and best interest rates. They can also guide you through the process of getting pre-approved and the documentation you may need to proof income and verify down payment.
2. Find Real Estate Agent
While looking for a house it is practically not possible for you to browse through everything and get all the information about the house and neighbourhood. At this stage a Real Estate agent is very important who can help you in finding the right house in your budget and also provide you the information about the surrounding areas. Working with the real estate agent for buying a house doesn’t burn a hole in your pocket as they are paid commission by the sellers. You can see as many houses you want.
3. Decide on property
It could be tough to decide on one property and make an offer when you are looking at different houses every week. You make like Kitchen in one house and the bedrooms in the other one. There are many other aspects you need to consider before purchasing a house. Check out as many places you can so that you can draw a comparison and choose only the best suiting your needs. Some important things you need to consider before buying a house are.
- Is the neighbourhood and area safe?
- Are the houses around the area well maintained?
- How busy is the street in terms of traffic and parking for your family and visitors?
4. Get property inspected
While writing an offer you can have a condition for property inspection. You may also get the house inspected by home inspector which will be more aware of any structural damage or shortcomings of the property. If any damage is found you can also have it repaired before closing or renegotiate the deal.
5. Finalize the deal
The final mortgage approval will be done only after you finalize the deal and decide to purchase the house. The mortgage documents are sent to your lawyer who finally registers the title on your name and forward the proceeds to the seller’s lawyer. You may also be required to get proof of damage & loss insurance to your lawyer.
These are few basic steps that involve the whole process of purchasing a house. It can be stressful in some cases but, it is always recommended to do a little homework, get the mortgage pre approved and smoothly go on the process of house hunting.