You have made it to part 2 which means you are one step closer to buying a new home! Part 1 went over early stage steps to buying a home which if you followed, you’ll be in great shape here. Now we will go over a step by step outline of what you can expect when getting ready to see homes and put in an offer on one or a few!
Step 1: The most important step of them all… Get a Preapproval
Now a-days, listing agents and home owners won’t even look at, let alone accept an offer with out including a preapproval letter. The idea behind a preapproval is simple, before spending countless hours on Redfin and Zillow or even driving around town to see the homes you have saved, you should be confident that you know how much a lender will loan you.
Yes, when you get preapproved your credit is pulled. So only have a preapproval done if you are serious about buying a home in the next month or two. Your credit score is provided as well as the data on your credit report. Lenders will also see how much debt you’re carrying and if you have any bankruptcies or collections. Questions about your income and assets are important to answer as that will help the lender calculate how much you can afford based on a debt to income (DTI) ratio. Some other documents your lender may ask for are below:
- W-2s and 1040s
- bank statements
- tax returns
- pay stubs
- savings and retirement statements
Having these together before connecting with a lender will streamline the process and make it easier for your lender to get a preapproval back to you asap (usually between 24-48 hours). This will give you the best understanding of how much you can afford when looking for a home.
Don’t have a lender? I would be happy to connect you with my lender I have been using for years where every one of my clients has thanked me for the most important recommendation. Having a trusted and experienced lender, not to mention someone who can get shit done, is SO important during your buying a home journey.
Step 2: Don’t forget to still budget
Just because your preapproval letter says how much you can borrow, does not mean you have to push your budget to the limit. It is important to consider taxes, insurance and still having enough money every month for savings, emergencies, investments and even vacations! Don’t forget about any improvements you will want to make to the home or furniture you may need to fill in some space.
Step 3: Time to House Hunt
First things first, make a list of your top priorities. Things such as, backyard with soft scape and a pool, maybe you need a 2-car garage and RV parking, having a primary suite downstairs may be important, or an open kitchen to family room concept. Sometimes design things are easy to look past and consider more of the money suckers such as how old is the plumbing, what is the condition of the roof, is there a foundation problem? All of these things are important to consider when searching for your next home and your realtor (me) can help guide you in the right direction on what you should be concerned about when entering each house you view.
Depending on your budget, it may or may not be possible to find a home with EVERY feature you want. Keep an open mind when you are out in the field looking at homes.
Step 4: Making an Offer
So you have found the perfect house! It is time to make an offer. This is where your real estate agent (me) will help you write the purchase agreement which includes the following:
- Purchase price
- Length of escrow
- Down payment
- Anything you may want included in the sale
- Contingencies; appraisal, inspections and loan
- Escrow and title
- & more
Once you have perfected your offer, your agent (me again) will present the offer to the listing agent. Once this is done, you will shortly (could be up to a few hours or a few days, depending on how long the owners would like to keep showing their home) hear back on if your offer has been accepted.
Are you ready to buy a home? Or maybe you are in need of a great lender? I am here for you! Send me a text or give me a call. (805) 341-2336 Let’s get you ready, excited at the top of any sellers list for your home buying experience.
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