The Home Buying Process

The Home Buying Process

 

I thought I would share with you the process of buying a home. The first step in the process would be getting a pre- approval from a banking institution. The pre approval allows you to see exactly how much you can afford when obtaining a mortgage for your new #
home. The pre approval letter also is what other #agents require in order for you to make offers on their listed properties. It lets everyone know that you are guaranteed for the money.

 

 

 

The Pre- Approval Process

 

 

Different banks require different things in order to pre qualify you for a #mortgage. A few items that banking institutions or mortgage lenders may ask or require from you could be-

 

Tax records for two years

 Banking statements

 Paystubs

and they will also ask to run your credit report.

 

 

 

 

The lowest score that most banks will consider could be in the high 500's. To really ensure that you will not get turned down, it is best to present a credit score of mid to high 600's. Although the mid to high 600's are not considered perfect scores they are good enough to be qualified to get a loan from FHA. (Federal Housing Administration)

 

 

 

 

FHA qualifies moderate credit scores for customers. FHA also has the flexibility where clients can present a low down deposit or earnest money. Earnest money or a down deposit is used to show the property owner that you are interested! It makes notice that you are serious about your offer and would like for them to consider you in their final decision. 

 

 

 

 Down payments can be as low as $1,000 and as high as $5,000 dollars. The down deposit depends on the pricing of the home. FHA requires that you present 3.5% of the purchase price of the home. For instance, let's say you are interested in a $150,000 home- your down deposit would be $5,250.00.

 

 

 

 

 

 

After the new home for you has been found-

 

After you have determined which home you like- the next step is a home inspection. The inspections will come out of your own pocket. Inspections generally run from $500-$700. The home inspectors give you a general over view of what condition that the house is in.

 

 

For example- they may disclose if you need new windows, new roofing, electrical issues, plumbing or piping issues and more. After this inspection- you will have the option to move forward or decline your offer to purchase that specific home.

 

 

Once your #inspections have taken place and you are still ready to move forward with the purchase- next comes an appraiser. Normally, the banking institution will assign an appraiser to come out to the property to access true and market value. Some banking institutions will require you to also pay this fee and others will return the fee to you at closing.

 

 

 

The amount that the appraiser determines for the property will be the amount that the banking institution will lend. They will not go above what the appraiser has determined to be the ultimate value. That determination could be a good or a bad thing.

 

Let's say that the amount given was lower than what the owner was selling his property for-- the owner could back out of the deal prior to signing contract if he doesn't like the amount determined. It could also be a good thing-- if you wanted to save money and the appraiser determined that it was a lower amount than what the owners were asking for- You Win!.

 

 

After the #appraiser --you then wait until the banking institution begin to finalize your loan and paperwork. During this process they are contacting title companies- land surveyors and more to make sure everything will be correct and final at the day of your closing.

 

 

During this process, it is also advised to make no sudden purchases using credit cards or anything else that could affect your credit score. The banking institution will also run a final credit check as well- days before closing sometimes.

 

 

The Day of Closing-- The Big Day!!!

 

The day of closing will seem long awaited and it will be calming to know that everything checked out and is finally clear for you to move in. At this time- you will also need to provide closing costs. These amounts vary. It would consist of paying the previous owner his due in taxes, city or county fees that he prepaid for the year and more.

 

 

These price ranges from as low as $500 to as high as $7,000. It will all depend on the purchase price of the home and whether or not you received seller's assistance and first time home owner grants. Receiving a first time homeowner's grant can greatly reduce your closing  costs by $5,000 and/or more.

 

Now is the time to consider home ownership. Rates for homeowners are at record lows. #Grant programs have opened up and they are even covering down deposits and closing costs!

 

 

 

Let's Connect so that I can help get you started on your goal of Home Ownership!

Stay Tuned for more tips!

 

 

Text APT or #Homebuyer to 610-978-5918

 

Nia- "The Buyer's Agent" 

Weichert Media/Springfield Office

 

 

Text APT or Homebuyer to 610-978-5918