Buying a home is likely one of the important decisions you will make for you and your family. It starts with you on the location and the property and ends with the closing with your attorney. This can be a tough process, especially when it is your first time. Before you go through it, here are some helpful things to take note of to make sure your home buying process goes smoothly.
Always be Prepared
You should first get a pre-approval letter from a mortgage company or a bank which states the value of a mortgage you will be able to receive. A pre-approval letter is not the same as a mortgage commitment and it does not promise that the stated value of the mortgage is what you will obtain in the end. Ultimately, a pre-approval letter provides you with an estimate of the mortgage you will granted and gives you an estimate of the amount you can spend on a house. Since a pre-approval letter is not a contract, you do not have to get a mortgage from the same mortgage broker or bank where you received the pre-approval letter.
Do Get a Realtor
Realtors are highly important when buying a home. They can introduce you to homes and communities that suit your personal needs. They are also great sources of information when it comes to learning about towns with high property taxes or local school systems. When you find a house, the realtor can help you negotiate the offer with the seller. They will also guide you through the home inspection process as well as any problems that may pop up before closing. It is best to find your realtor through a referral, but you can also explore websites, open houses or advertisements. Choose a realtor whom you feel you can trust as it is important that you feel comfortable with them.
Getting an Attorney
This is a little bit like finding a realtor. You can ask for recommendations from you friends or go on the Internet. You need an attorney to help you revise the contract to check that you have legal protection. They are also crucial for helping you meet all the contract deadlines, carrying out credit negotiation and preparing the documents for closing.
Attorney Review
The attorney review process commences when an offer on a house is accepted. It is a time when the sellers and buyers get a chance to terminate the contract. The purpose of this process is to give both parties a few days to rethink their decision before making the big commitment to sell or buy a house. In this period, the buyer’s attorney will extend an attorney-review letter, which may contain alterations of certain terms in the standard real estate contract, to the seller’s attorney. After the final terms of any addendum or rider are determined, both parties are bound by the terms of the contract, addendum or rider.
Getting a Mortgage
A bank or mortgage broker requires information of your financial history before you can get a mortgage. To make this process faster and smoother, it is helpful to gather your recent pay statements as well as records of your tax returns and W-2s for the previous few years.
Take Note of Deadlines
In your real estate contract, there will be deadlines for things like paying deposits, inspecting the property and getting your mortgage. If the deadlines are not met, it can be considered a breach of contract, allowing the seller to terminate the contract if they wish.
Closing
This will take about two hours and will include signing of mortgage documents. One of the most important documents is the Promissory Note which specifies that you will pay the Mortgage and loan, or the Bank has the right to repossess your home.
