The home buying process can be made easy and simple by following the proven steps below.
Early In The Home Buying Process
- Get Preapproved for a Loan
Obtain a copy of your credit report and your FICO score and, if necessary, do what you need to do to improve it. The higher your FICO score, the better interest rate you can command. You can get this information online; your RE/MAX agent can also help you. Contact several lenders and determine which one will give you the best deal. This is just the first of our home buying tips.
- Determine Your Price Range and Area(s) in Which You’re Interested
By now you should have a good idea of how much home you can afford. This helps you narrow down your home search and speed up the home buying process. You should also begin researching the neighborhoods in which you might want to live. Your RE/MAX agent can help.
- Decide Which Amenities and Features You Must Have
How many bedrooms and bathrooms do you want? Would you prefer a newer home or an older one with established landscaping? Are hardwood floors a must? Is an updated kitchen important to you? Walk-in closets? Which features would you be willing to give up if you find the otherwise-perfect home? These questions are important to answer to decide which to see much less which homes to buy.
- Begin Testing the Market
Right here on remax.com, you can find listings that meet your criteria as well as neighborhood data. Identify properties that seem to be fit for you, take an afternoon and go on a driving tour. See what’s available in your price range and explore neighborhoods.
- With Your Agent, Begin Seriously Looking at Homes
Searching with your agent can add to the list of homes you’ve already identified – including ones that have just come on the market. Look at homes with a critical eye – does the floor plan work for you, is the property in good condition, would it be right for your lifestyle? In short, can you imagine yourself and your family living there? Take notes at each home you visit. What do you like and not like?
Narrow down your choices; re-visit homes in which you’re interested. See them at different times of the day.
Home Buying Process – The Offer
- Make an Offer
When you’ve identified the home you want to buy, be prepared to help your agent prepare a written offer quickly. Your agent will be familiar with market values and will help you arrive at a price that gives your offer the best chance of being accepted. At this stage, try not to become emotionally attached to a home. Your offer may not be accepted for any number of reasons. Have backup homes in mind. Be prepared to negotiate through your agent with the sellers. Of the steps to buying a house, this can prove to be the most difficult.
- Once Your Offer Is Accepted:
You’ll be asked to submit a due diligence deposit. This is usually non-refundable. Use this time to do a home inspection and really make sure the home is really as great as it looks on the outside and know what’s really on the inside. You will also give another deposit called earnest money. This is refundable usually up until the due diligence period.
- Begin making moving arrangements (select a mover, obtain change-of-address cards, and inform friends and relatives).
- Have the property professionally inspected.
- If necessary, request repairs.
- Obtain home-owner’s insurance.
- Contact utilities (phone, water, power, etc.).
- A few days before closing, stage a walk-through.
- Obtain a cashier’s check for the down payment and closing costs.
- At Closing:
- Make sure the terms and conditions of the loan statement are correct.
- Carefully read everything before you sign.
ENJOY YOUR NEW HOME!
Now you have great steps to follow for the home buying process. But, do you need a realtor? If so, when should a realtor be included in the process?
Why You Should Use a REALTOR® in Your Home Search
Buying a home is probably the largest investment you’ll make in your lifetime. Having an experienced, knowledgeable RE/MAX professional representing you in this transaction just makes good sense. Buying a home is not like buying a car, a mutual fund or other commodity. It can be a life-changing event. RE/MAX agents fully understand the real estate process – and just as important, they understand your local market. Of course they know the right steps to take, but they can also help you avoid a misstep in your home purchase. If a new freeway is going to be built a few blocks away, they’ll probably know it. If you’re unsure about school districts, they’ll be able to direct you to answers. If you’re unsure of a builder’s reputation, they’ll know how you can confirm it.
Your RE/MAX Sales Associate also performs another important function: minimizing the emotion involved in a home transaction. You may be in love with a home, but your agent can point out factors that might not make it right for you.
Information courtesy of RE/MAX.com