What to Know Before You Buy a Home
Buying a home is a very rewarding experience. Working with a mortgage expert along the way makes it even more gratifying. These steps in buying a home make it easy and we are here to help.
Learn Your Mortgage Options and Get Preapproved
This is a very important step in the home buying process. Know what you qualify for‚ come up with your budget‚ choose a program and payment that is right for you and then get preapproved. The preapproval process involves providing your personal information such as income‚ employment‚ assets and having your credit reviewed as well as sending in documentation. After this step‚ you will know what your purchase price range should be at when shopping for your new home.
Consider a Real Estate Agent to Work With
Consider working with a real estate agent in your area of choice. An agent will guide you through the process‚ sharing valuable information and insight. Your agent of choice will know the market that you are interested inand help you navigate the nature of that area.
Search and Shop for Your New Home
There is a great deal of preparation involved in determining the needs‚ finding suitable properties and gathering information to help you make decisions. Your real estate agent will assist in showing you homes that you are interested in. Give your agent feedback and make time to go look at the homes you may like.
Make an Offer
If you find a home and would like to make an offerto purchase it‚ your agent will review the market and inform you of what a good offer would be. Your agent will guide you through the negotiation and contract processes.
Time for a Home Inspection
Once a buyer and seller mutually agree to a sales price‚ any other contractual terms and sign the purchase contract‚ the sale is now pending. Most buyers choose to get a home inspection. For buyers and sellers‚ the sale is not considered final until all inspections have been completed and any additional negotiations are finalized.
Finalize Your Financing Options and Be Prepared to Close
Since you have already been preapproved‚ this step is relatively easy. Be prepared for any additional documents needed to finalize your mortgage paperwork. Your real estate agent will coordinate a good time for closing and you will be preparing for your move on your closing date.
Close on Your Home Purchase
You and your VA Mortgage Corp team have completed the inspections‚ secured your financing and now you are ready to close.
We typically start with how much you want to spend each month on housing. Everyone has a different budget that fits their lifestyle. Most budgets call for 28% of your after–tax income for house payments‚ including your homeowner’s insurance and property tax. For example‚ if your annual income after taxes is $70‚000‚ 28% of that is $19‚600‚ or $1‚633 per month. There are other debts to include when budgeting like child care‚ car insurance‚ etc. A mortgage expert can assist you in coming up with your preapproved price range and what range of purchase price you should be in when shopping around for your new home.
Based on where you live and what kind of policy you want‚ your property taxes and homeowner’s insurance will vary. You can get an estimate on homeowner’s insurance by visiting a provider’s website. To see what kind of taxes you might pay‚ you can ask your real estate agent to help you research the tax rate in the areas where you’re house hunting‚ or you can visit the county tax assessor’s website to find public records of taxes on homes in the neighborhoods where you want to live. Many states also provide a property tax estimator online.
Mortgage closing costs or settlement costs‚ are fees charged for services that must be performed to process and close your mortgage application. Examples of mortgage closing costs include title fees‚ recording fees‚ appraisal fees‚ credit report fees‚ pest inspection fees‚ attorney’s fees‚ taxes and surveying fees. The closing cost of a loan can vary depending on your geographic location.
Lenders are required by law to provide you with two documents which are the Loan Estimate and the Closing Disclosure. These documents outline your closing costs and help you avoid surprises at the closing table.
If you are buying a home‚ you’re usually off the hook for paying a realtor fee. The home seller usually picks up this payment. Typically‚ the fee is paid by the seller at the settlement table‚ where the fee is subtracted from the proceeds of the home sale. The realtor fee is paid by the seller to the listing broker who‚ in turn‚ shares part of it with the realtor who brings a buyer to the table.