Frisco Mortgage News

7 Essential Steps for Buying Your Next Home

March 4th, 2014 7:32 AM by Christopher Lear

If you’ve been through the process of buying a home, you know how complicated the process can be. If you are buying your first home, well, it can be even more confusing. Here’s a short version of the 7 essential steps involved in buying a home. This does not cover everything, but I’ve created it to give you an overview of what to expect.

Step 1 – Making the offer and negotiating the contract

  • Ask your real estate agent for prices of homes that have recently sold, and then base the dollar amount on what you are willing to spend
  • Be upfront about what you want included, such as curtains, lighting fixtures, appliances, etc.
  • If you don’t need to move on a certain date, be flexible on the closing date
  • Ask the seller to buy you a home warranty.

Step 2 – Getting a mortgage

  • Find a lender by asking family, friends or real estate agent who they would recommend. (I hope that you consider Lear Financial Group in Texas!)
  • Calculate your down payment because that can determine what type of loan to apply for
  • Get pre-approved before you submit your offer
  • Obtain interest rate quotes and closing costs comparisons
  • Determine if you want to pay points to buy down your rate or pay a higher rate and have some of your closing costs paid for you
  • Be prepared to provide financial documents to Lear Financial Group.

Step 3 – Inspecting the home

  • Find a qualified inspector
  • Ask to accompany the inspector when you make the appointment
  • If there are problems, obtain individual inspections by certified contractors and get a bid for the repair work
  • Ask the seller to correct the problems or ask for a reduction to the sales price
  • Ask for additional inspections that may not be covered (i.e., mold, radon, water quality).

Step 4 – Reviewing the appraisal

  • Your lender will order the appraisal
  • You will receive a copy with in three days of the appraisal being received by  the lender.
  • Ask the lender or real estate agent to explain it to you
  • If the value is lower, try to negotiate the sales price with the seller or come up with more money for a down payment.

Step 5 – Shop for homeowners insurance

  • Check three insurance companies
  • Compare coverage, including personal property and garages
  • Compare deductibles
  • Do a Google search on how quickly they handle claims.

Step 6 – Viewing the home before closing

  • Verify that all items you negotiated in the contract are still there
  • Check appliances to make sure they are in working order
  • Turn on faucets and flush toilets
  • Check heating, air conditioning, smoke detectors
  • Check once more for water stains
  • Watch for any trash left in the house (extra expense for you to remove)
  • Ask for credit from seller if problems.

Step 7 – Closing the loan

  • Lock your interest rate
  • Review your closing documents three days ahead of time
  • Get a list of the closing costs and the dollar amount you will need to close the loan
  • Get a certified check
  • Provide homeowner insurance
  • Watch for fees that were not disclosed to you with the first estimate.
Posted in:General
Posted by Christopher Lear on March 4th, 2014 7:32 AM