Buying a home can be a long process. From the initial application to the mortgage closing, there are many steps you must complete before the transaction will be finalized. To improve your understanding of the process so that you can prepare appropriately, consult the timeline below.
Step 1: Find out how much you can afford.
The first step in purchasing a home is to find out how much you can afford to spend. The easiest way to determine what you can afford is to consult a mortgage loan originator. With the help of a mortgage loan originator you can prequalify for a loan. Not only will this prequalification help you determine which houses you should consider, but it will also strengthen your offer when you find your home of choice.
Step 2: Hire a real estate agent.
After you know your price range, hire a buyer’s agent to help you with your search. This agent will schedule showings for you, accompany you as you view different houses and provide you with guidance throughout the home buying process.
Step 3: Look for a home.
The next step in the home buying process involves visiting available homes until you find the one that meets your needs. Depending on the market in your area and your home purchase goals, it may take as little as one day to find your home, or you may shop for several months without finding the right property.
Step 4: Make an Offer.
After you have found the home of your choice, you will make an offer with the help of your agent. Typically, the seller will counter the offer and you will negotiate until you are able to agree on all terms.
Step 5: Resolve Contingencies.
Most offers to purchase come with contingencies that must be satisfied before the transaction can be completed. Some of the most common contingencies include home inspections, financing and selling a current home.
Step 6: Close the sale.
The mortgage closing is the final step in the home purchase process. On this day, ownership of the property will transfer, money will change hands and you will officially become a homeowner.
For more information about mortgage expenses or to check the latest loan rates, contact Starboard Financial. We have offices in both Arizona and Illinois, as well as loan officers nationwide who are ready to assist you.