Purchasing real estate is an exciting process, but there are many steps to be taken for a successful sale. I have prepared a list for you to follow so that you can be best prepared and to help make the process go smoothly.
Contact a Mortgage Agent – Hiring a mortgage agent is one of the very first steps that you will want to take. They will check your credit score as well as pre-approve you for an amount to borrow for a mortgage. This result will determine the price range of homes that will be in your search. In addition, they will provide you with a pre-approval letter that you will need to accompany your offer.
Control Your Spending – An important part of planning to purchase real estate is to save money for your down payment, closing costs and other miscellaneous expenditures during the process. A mortgage broker can give you an idea of what costs to expect depending on your situation. It is best to avoid making any large purchases during this time as that can affect your qualification for a mortgage.
Location – Each neighborhood offers something different for amenities, culture and services so be sure to do your due homework and investigate which areas are best for you. Identify things like proximity to services and your work commute as well as cost of the homes that are appropriate for your needs.
Home Inspection – Ordering a home inspection is vital for having a true understanding of what your potential new home may need in repairs and for its overall condition. Not only does an expert know exactly what to look, but this information can help in budgeting for future expenses. Should any extensive repairs be needed, further negotiation may be desired with the seller.
Enter Contract – After your home inspection has been conducted, the next step is to sign your Purchase and Sale Agreement, commonly called “P & S.” This agreement defines all terms of your offer including important dates and will be accompanied with your down payment. You may have additional steps for financial approval, but this will be the next significant step until your closing.