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Are You Buying a home?

Buying a home is one of the most expensive, stressful, and exciting endeavors you’ll make in your life.

Therefore, it is quite essential to be vigilant while embarking on the quest to buying a home.

Our guide will provide you with facts and ideas on how to prepare for a mortgage to remove the guessing game along the way.

Let’s start on what you need to prepare:

Undertake a Thorough Research

Honestly, this is the fun part of the process. This is where you get to localize your preferred area to live.

Begin your venture by undertaking thorough research. Gather as much data as you can; zeroing in the area that you really love.

If it’s in an old neighborhood. Chances are the home is old too. Better do thorough research and dig deep into the history of the house.

With Property Reports, you will see the age of the house, how many times it was sold, basic demographics of the area and all permitted construction made to the property.

Get a Solid Preapproval for a Mortgage

The Pre-approval process is to determine the amount that you can afford depending on your finances.

Also in this area, your downpayment will be accessed too.

Who gives you a preapproval? They are the banks or mortgage lenders’ underwriters or loan processors.

They will ask for the following:

  • 2 Years of your latest tax returns
  • Paystubs
  • Government IDs
  • W2s

These are the basic documentation for the bank to determine what you can afford. Some guidelines may have some variations in the documents that they need but this will suffice to get you preapproved.

Getting pre-approved requires a little more endeavor but it is worth taking the process. Validating your financials gives you an objective look at what you can afford comfortably.

A pre-approved client has a favorable chance than an individual that hasn’t gone through the process.

Do you need a Real Estate Agent if you’re buying a house?

The straight forward answer is “NO.” In very special cases, like bidding for an FHA property that is in foreclosure, the government requires that parties need to be licensed, real estate agents.

But if you are moving to a new area that you don’t have an idea. It’s better to hire one to represent you.

Consider these dilemmas and see if you need to hire a Real Estate agent:

  • Are you really familiar with the area and know the value of the homes there?
  • Are you comfortable with negotiations?
  • Are you familiar with most of the paperwork that needs to be signed during the process?

If your answer is “NO” to any of the questions, its best to hire an agent for this purpose.

Who pays the agent? The seller will be paid through closing, but this is where the gray area lies.

Since the seller will be the one paying the agent, where will the agent’s loyalty tilt?

Interviewing a good Realtor is the key.

Seasoned Realtors has the experience and knowledge of getting you the best deal.

They have access to listings that are not on the market or “for sale by owners” homes.

In fact, survey studies found that 85% of home buyers tend to hire Realtors for the sole purpose of getting an edge in the market and have access to listing that can get them more value for their money.

Plus, it also shows that Homebuyers start their research online to find a home and 28% with a Realtor.

Also, 89% of the time will recommend the agent to their relatives and friends to buy their home.

Take time to interview a few in the neighborhood. Make sure the agent is the listing agent and not a sales front from another company. Remember, access the one that has the best knowledge of the area and would cater to your wishes and give you value in the long run.

Practice straight forward questions, how much is your commission for this transaction? How motivated are the sellers? Can you negotiate for a lower price?

Seasoned Realtors are used to these questionnaires and won’t sweat it.

House Hunting

Whether you have an agent or on your own, house hunting is essential and thorough research is needed.

You can access Demographics of the area, for families the ranking of schools that your kids will attend to, and also crime report summaries can be ordered.

Everyone has a dream home but in reality, we need to compromise.

The layout of the home, painting of the interior or even hardwood floors come in different hues but still, it could be compromised. These are easy to fix areas but the main structure of the building is the areas that need real attention.

You can’t bargain on the structure of the home. Order a professional inspection. This will give you a negotiating factor and shoot for a lower the price of the home.

Getting a Home Valuation Report

At this stage, you would be officially under an agreement on your new house. The thought that you have made it through all the tedious procedure is really cheerful.

Now since you are in an agreement, it is required to deal with the contingencies. These are conditions to be fulfilled for the buying process to occur. The contingencies safeguard your interest and enable you to withdraw if anything bad occurs.

Home Appraisal/ House Valuation

If you are on a home mortgage, a house valuation report or property valuation report will be a vital requirement from your lender.

A house valuation report saves you from paying more than the true worth of the home. If the home appraisal estimate the value lower than the offer made, your real estate agent will guide you in the fines way.

Home Inspection

It is your right as a buyer to get the home inspection done before closing the deal. It is in your best interest to undertake a home inspection since it would eschew you from being taken aback by expensive repairs or structural issues. If the home inspection discloses major issues with the house, you may ask the seller to fund the repairs, decrease the price, and you may even cancel the deal.

Ultimate mortgage approval

The best practice is to purchase a home with cash. It not only furnishes the foundation in creating wealth but also facilitates the procedure. In case you are on a mortgage, you will need to get final approval. The lender will look into your financial details to approve your loan.

Closing the Deal

Congrats! You have done it all. All that tiresome process of planning, home search, and wait is over. You are ready to see your dream come true. Just one more thing to do i.e. paperwork, you would need to review the contract papers in order to avoid unneeded surprise.

Most probably, you’ll have to finance;

  • Closing costs
  • Property Tax
  • Homeowners insurance

In case you find it difficult to comprehend anything in the documents, ask questions about without any hesitation. After all, you are going to make one of the biggest investments of life; you have the right to know everything mentioned in the papers. After signing all the documents, you are now a homeowner. All the procedure regarding the home purchase isn’t a piece of cake at all, yet it is worth taking to own dream home.

To get facilitated in the home buying and documentation procedure, you can trust and contact Local Records.