10 Steps to Buying a Property
Save enough money for a down payment on your home and also closing costs. On a FHA Loan you will need 3.5% of the sales price as a down payment. On a conventional loan you will need up to 20% down. Closing costs are separate from the down payment and typically amount to 3%, or more of the sales price. You can also receive down payment assistance in the form of seller concessions , programs for “first-time homebuyers,” or loans such as “USDA.” Gift money may also be used.
The ideal credit score to get a loan is 640, or above; however, there are exceptions.
It’s never too soon to get pre-qualified by a mortgage lender. This could be your local bank, mortgage broker, or credit union. This pre-qualification not only gives you the “green light” to shop for your dream home, but also helps you figure out how much you can afford. This is the #1 thing to do. Most sellers will not show their house to buyers unless they are pre-qualified. Further, your pre-qualification letter must be submitted with any offer you place on a property.
With your pre-qualification letter in hand, contact the best agents in Cumberland County at Wheaton Real Estate for an appointment to see all the houses with your wants and needs. IMPORTANT: Don’t make any large purchases, such as cars, weddings, recreational vehicles, etc. until after you purchase your property. Any such large expenses will negatively affect your credit score and possibly prevent you from purchasing a home.
Have your agent connect you to an automatic notification of properties with your specifications, so as they come live onto the real estate market, you will get notified immediately. Drive around different neighborhoods and see which areas you like best. If you see something interesting, always call your Realtor, even if it’s not listed with your Realtor, he or she can show you any property. Schedule appointments with your Realtor for showings whenever you are available, which may also include evenings and weekends.
Once you find the home you really like, with the advice of your Realtor, it’s time to place an offer to purchase to the seller. The offer is negotiated until acceptable.
Coordinate with your Realtor the scheduling of your home inspections and any other inspections/certifications and ordering a title search. Meet with your loan officer, complete the mortgage application, and provide them with the documents they need to proceed with the transaction.
Up to two weeks before closing, you can transfer utilities, obtain homeowner’s insurance, hire a moving company, and change your mailing address.
Settlement day has arrived. You will get the certified funds from your savings account which will represent the amount of money you need to bring to settlement. Just before settlement, you will complete a final walk through of your property to ensure the property is still in the condition it was when you were there last. After ensuring all is well, you will attend settlement with your Realtor, the title company, loan officer, sellers, and, if you choose, an attorney. After signing all the mortgage documents, the bank will wire the funds to pay seller, then seller will give you the keys.
Congratulations, you’re a homeowner!