What is the process of buying a home?

Question

There's so much it seems complicated. Can you explain the basics?

Answer 1

Here's the basic process:

- FINANCING: Talk to a loan person and determine what price range you can afford, what the monthly payment would be, and how much down payment you would need.

- SHOP: Now that you have your price range, contact a buyer's agent and look at homes together. You could, of course, do this on your own, but you'll learn a lot by going with an experienced agent.

- OFFER: When you find the house you want, make an offer. Your agent will explain the various options to you.

- INSPECT: When your offer is accepted, get the property inspected. If there are any problems, negotiate with the seller to fix them, reduce the price, or give you money to fix them once the house is yours.

- CLOSE: At the end, you close the purchase and the house is yours.

- PARTY!!!! Move in to your new home. You did it-- congratulations!!!

Answer 2

You have to know what you are qualified to purchase even if you have bad credit.

Speculation is just that speculation get with someone that can get you qualified and pre-approved.

So the first thing you should do is contact a mortgage broker so you can complete a loan application, after which he will run your credit report.

This credit report will give him your credit score. Get a cup of coffee or your favorite beverage when filling out the loan application this is not a 15 minute chore.

Your credit score will tell him what loan programs you are qualified for as well as the interest rate you can expect. This credit score will tell if you are able to get a 100% loan and if not how much cash you have to bring to the table as your down payment.

There are lots of documents and information the mortgage broker will need. I will give you a few to get you started.

#1 Six months of all bank statements you use currently, as well as any statements from your 401k at your place of employment

#2 One months of pay stubs from all that are going on the mortgage.

#3 Two years of federal income taxes and W-2s

After discussing the best loan program for you and agreeing on the program you want, the mortgage broker will issue you a "Pre-Approval Letter." Don't forget your good faith estimate (GFE). This will give you an idea of the cost of your loan. That
is in addition to any down payment how much additional cash you must bring to the closing table.

In order to preclude PMI when a lender will finance 100% of the house you are buying the mortgage industry have solved that problem by offering a 80/20 loan. Don't be afraid of them.

You have to understand that the increase in payment if the loans are adjustable.

Your first mortgage (80%) might be a fixed product, while your second (20%) could be an adjustable product. If you don't understand the product ask your mortgage broker and don't leave until he/she has explained it to your satisfaction.

Now once this has been established you should connect up with a real estate agent to find you a home. Upon finding a home you like the real estate agent will then prepare a sales contract for you and the seller to sign.

The mortgage broker will order an appraisal of the house to prove the value.

Once all the documents necessary has been collected the mortgage broker will order loan docs for the program that you agreed to earlier. Again don't plan on spending a lunch hour there to sign loan docs this is a process so be prepared to be there for awhile.

Don't sign the loan docs if anything has change from what the mortgage broker explained to you. Call and get an explanation.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

For you - check your credit see if there is anything reporting negative or if you can lower any balances. Then use an online calculator to figure out how much home you can afford Try bankrate.com
Get pre-approved. This will tell prostpective sellers that you are a decent candidate.
then start looking - you can choose whether or not to start this process with or without a real estate agent.
When you find a place, you will make an offer and put up "earnest money" - Earnest money tells the seller that yu are committed to their property. You do not get this money back if you change your mind ( the seller keeps it ! )
Then you would meet with a loan officer to figure out what kind of loan/interest you qualify for.
If your offer is accepted on the house, you will need to arrange your loan and pay closing costs in most cases ( typically 5-10 k ) You can often add this into you loan.
then you move into your home on the agreed upon date after it has been appraised and passed an inspection.

I've been dissappointed in the process before by losing out and not winning the bid! Good Luck - and don't forget to make sure you can afford the mortgage payment before signing ANYTHING!!!!

Answer 4

First, do you have a home to sell?

If not, then the process becomes simpler. You can work with a buyer's realtor or a seller's realtor or you can choose to not work with a realtor. If this is your first home, I highly recommend working with a buyer's agent realtor because they can provide you with valuable and solid advice. They can save you a lot of money down the road. You will need to figure out your price range that will depend upon the size of the down payment and the size of the mortgage payment you can afford. You will need to take into account expenses such as insurance and taxes. If you buy a new home then you need to buy bathroom fixtures and window treatments. You will most likely need to paint the walls. If you buy an older home, you may need to look at replacing the roof and making repairs. You will need to know the right questions to ask, which is why I recommend working with a buyer's agent. Once you find a home, you need to make an offer. You will need to have a letter from a bank saying that you are pre-qualified. This isn't required but it's a very good idea. It will give you an advantage over another buyer and the seller will like it. They may be willing to cut you a deal if they are anxious to sell. The buyer's agent can offer advice on whether or not he/she thinks a house is at the right price or how much to offer if you find a house you like that is in your price range. The agent can offer advice on mortgages. There is a lot to consider with buying a house and can seem intimidating but once you buy your first home, it does get easier and less intimidating. Best of luck to you. I hope this helps.

Answer 5

Because i am in mortgage I would recommend having a mortgage or loan officer pull your credit. Look at your assets and see the purchase price you are able to qualify for and the programs available. Then when you get that set up. Meet with a local realtor who can assist you to find the house you are qualified for. Then the realtor will help you make the offer and then get a purchase and sale agreement which you take back to the mortgage officer. They will go over different loan programs and then you pick which one you want and the loan processes which can take about 4 -6 weeks for all the paper work to get done. You then go to title and sign and after 1 day you get the keys ;o)

Answer 6

It depends on the process on alot of things. The best is to ask the realtor and they are the ones that can tell you the procedure depending on the house you might want....bettyk

Answer 7

these explanations seem like too much info. You can visit my website at caseycasperson.com and click through the process.

The key is to connect with a solid realtor and loan officer. They do all the work and you can simply sit back and relax.

I'm licensed nationwide and can do your loan for you if you want.

Answer 8

Step one: find yourself a good buyers agent. It is of no cost to you as they are paid by the seller.
Step two: follow their advice.
RE agent
Remax.
WWW.REMAX.COM (you can find a good agent here)