BUYING A HOME
As a Marketing Manager for Buy a New Home in Maryland I want to share with readers some tips on buying a house that will make the process of buying a house a little easier and more successful venture. For additional tips on how to buy a house learn more here.
Oftentimes first time home buyers really have no idea where to start when it comes to buying a home. There are varying opinions on whom the prospective homebuyer should reach out to in order to get the process started. Some reach out to a Realtor first while others contact their Bank Loan Officer or a Mortgage Broker. A Realtor's job is to assist you with finding a home, negotiations on the home, filling out the legal paperwork to submit an offer on a house you want to buy. A Loan Officer or Mortgage Broker on the other hand, will help you determine if you are qualified to buy a home. Before you start looking at homes it is important to know if you are qualified and for how much. It is useless to begin shopping for a home before you know if you are qualified to do so.
So if you are interested in buying a home contact a Loan Officer or Mortgage Broker and see if you are qualified. It is a good idea to get a rate quote from several lenders. Interest rates do vary some among lenders. The programs available from Lenders vary as well. So it is wise to speak to several before making a decision about whom to choose for financing your home purchase.
Discuss which loan options may be best for you. Should you get an FHA, VA, USDA, or Conventional Loan? Your Loan Officer should be able to help you decide which loan makes the most sense for you.
Send in all required documents to your Lender ASAP. Each day delayed can be a day delayed in your settlement date.
Once you have an approval letter from your Lender reach out and hire a Buyers Realtor to assist you with your home purchase. A Buyer's Realtor fees are paid through the Real Estate commission fees of the seller, not by you. So make use of their expertise it can make finding a suitable home much easier for you. It is a good idea to ask for references from the Realtor you are considering hiring. Do not be hesitant about asking for references. References will give you a sense of what your experience with the Realtor will be like.
Once you find a house you want to buy your Realtor will assist you with putting in an offer on the house and negotiating the price of the home. Aside from negotiating price, you can also negotiate which if any items in the house will be included in the purchase and how much sellers assistance towards your closing costs the seller is willing to pay in your behalf.
Once you and a seller have agreed to the terms of the purchase you will sign a purchase contract. Always add the financing and inspection addendums a part of the sales contract as these protect you if your financing falls through or the home inspection uncovers major repairs that the seller will not agree to fix on their dime.
Order the home inspection. A home inspection protects you from buying a home that has major structural or mechanical issues. If the inspection uncovers some issues with the home negotiate with the seller about repairing these items before settlement.
After a favourable inspection, your Lender will now order an appraisal on the property. This is done to assure that the sales price of the home is justified and that the home is in favourable condition. If the appraisal comes in lower than the agreed purchase price then the seller will have to lower the purchase price.
If the appraisal and home inspection went well the next step is to get your loan approved. After the initial documents had been submitted your Lender sent them to the Underwriter for approval. Many times additional documents will be required in order to get the Underwriters final approval and clear to close. So send these items in ASAP so that your settlement does not get delayed.
You will now need to get a homeowners insurance policy as is required when you buy a home. Contact your insurance company and request a quote from them and provide this to your Lender.
At this point, you are just awaiting the Final Approval from your Lender. Once you achieve that you will go to settlement and get the keys to your new home.
An experienced Realtor and Lender can make the home buying process much simpler for home buyers. So choose wisely in this regard.