Purchasing the house of your dreams does not happen everyday. Before you proceed to buy, there are some things you can do to make sure that it is in fact a dream and not a nightmare. A dream home or not, these are universal truths to consider before you purchase. Read this buying guide to ensure that you are making the right decision.
Secure pre-qualification for a particular price range before you look for a home. Shop around for mortgage lenders in your locality to help you in determining the amount you are qualified to borrow based on your annual income. In general, lenders propose that not all home-related expenses, which include mortgage payment, insurance premiums and real estate taxes, exceed twenty-eight percent of your income per month.
Get a home loan pre-approval. For this process to progress, you must provide a proof of your income. Many mortgage lenders would like to see income tax returns for the past two years to as proof of the income you are claiming.
After you are pre-approved, it is now time to begin your search. Your lender will provide a pre-approval letter with the amount you can borrow stated there. Present this letter to your real estate when you start home hunting. Sellers will take your offer seriously if the pre-approval letter backs you.
The moment you find your dream house, it is now time to make your offer. You already know the amount you are qualified to spend and an idea of the property’s worth. In addition, your real estate agent can help you with the process of making an offer. The pre-approval letter is an assurance that your offer is valid.
Learn how to negotiate. Most probably, the seller will provide you with a counter offer and the negotiation can take several days and weeks, depending on several aspects like the present real estate market conditions, motivation of the seller and other issues. Your real estate agent will be a good guide to help you with the negotiation process.
After negotiations are accomplished, you should present a copy of the Purchase and Sale Agreement to the mortgage broker. After this, you must work with the broker to make certain that you meet all the requirements for closing the loan mortgage.
Have a home inspection performed by a certified home inspector before closing. A home inspection will protect you from flaws in construction and home conditions not visible to the naked eye. The inspection can unravel things such as a crack in the foundation, termite infestation and other home concerns.
Once the inspection report comes out clean and all items revealed have been replaced or repaired, it is now time for you to hand over the money for the down payment and sigh the necessary loan documents. The fun starts after closing! You realtor will now hand you the keys to your dream house and you can move in whenever you like and enjoy your dream house.
In purchasing your dream home, it is important to consider all possible items before your buy since this is probably the biggest decision you make!
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