Step 1: Know what price range you can afford. Ask a loan mortgage
lender to pre-qualify or pre-approve you. Keep in mind that there
are many mortgage programs out there other than conventional loans
to help you, and rates and program offerings vary from one lending
institution to another. Obtaining your loan directly from the
lender can save you thousands on closing costs and extra interest
charges over the life of the loan.
Step 2: Now that you know your price range, start looking. Call
up the sellers of the homes you are interested in and schedule
an appointment for a showing. Be courteous, if you change your
mind about the visit be sure to call so the seller isn't waiting
for you.
Step 3: Once you find the home you want, tell the seller that
you are interested in buying the home by making an offer. Be sure
to consider whether appliances, window coverings, etc. are included
in the price. Discuss other points, such as when each of you would
like to move and ideal closing dates. If you do not agree right
away on price and terms, don't despair!! It is a good idea to
allow some time to think it over, for both parties. Usually the
seller will make a counter-offer to resume the negotiating process.
It is important to take the ego out of the negotiation - this
should, and can, be a win-win situation for both you and the seller.
Step 4: After you and the seller have agreed on price and terms,
you should be prepared to bind your offer to purchase with a deposit.
The deposit shows that your intent to purchase is serious. The
deposit amount will depend on the purchase price and what the
seller is willing to accept. The earnest money check should go
into an escrow account. For your protection, this should be set
up with a bank or lawyer.
Step 5: Be sure to specify in your contract any requirements that
you have, such as the house passing a satisfactory housing inspection,
or that your deposit be returned within a specified time if you
do not qualify for financing (often the seller will request a
pre-qualifying letter from the mortgage lender). A lawyer is a
good resource for advice too, and can help you and the seller
fine-tune additional details associated with the purchase. It
is a good idea to have your lawyer review the Purchase and Sale
Agreement before you sign!
Step 6: Complete the loan shopping process, if necessary. Then,
once you've decided upon the mortgage lender, get the loan process
started. New direct line mortgage mortgage services can give you
approval in 24 hrs.
Step 7: Once the loan has been approved, notify the seller and
your attorney, and finalize the closing date.
Step 8: Attend the closing to sign the paperwork. The closing
is where the ownership is turned over to you.
