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31 Mar

Steps to Purchasing a Home


Posted by: Ben Bourgeois

Build a Budget. The 4 factors that determine what you can afford from mortgage professional standpoint are credit, down payment, income, and debt. When trying to figure out what you can afford its best to speak to a mortgage professional in order to get an exact figure. It is also a good idea to speak to your mortgage professional about any sort of future liabilities you foresee and include them in your budget for a home.

Investigate your Mortgage Options. Did you know that the average person stays in their mortgage term for 38 months? Did you know many discounted mortgage rates have much higher mortgage penalties and no prepayment privileges? When speaking to your mortgage professional make sure you’re getting all the facts!

Choose a Realtor. An excellent realtor is a strong negotiator, consultant, and personal advisor. They will play an extremely important part in providing guidance on those tough decisions and making sure you get a home at a fair price.

Choose a Lawyer. Make sure you have a lawyer that is experienced in the real estate law. It doesn’t hurt to have a lawyer look over any purchase agreement. They are also responsible for conducting a title search, transferring title, checking for liens and outstanding taxes on the property.

Searching for a Home. When hunting for a home it is extremely important to create a list with all the things that you need in a home, wants and things you can’t live with. Factors may include future plans, current needs, and lifestyle. My recommendation is to create a checklist and bring it to every property you view. This will allow you to compare one property to another very accurately and help you make the correct decision. Provide this information to your realtor, they can help you narrow your search and provide excellent recommendations.

Make an Offer. Your realtor will make an offer, this will include price, conditions, deposit and closing date. The seller will either accept, counter or reject the offer. This the area where your realtors strong negotiating skills will come into play.

Home Inspections or New Home Warranty. Hiring an inspector is optional but it may be a good idea for a resale home. You can make your offer conditional on a home inspection which will allow you to negotiate repairs or withdraw your offer. New home warranty is typical when you purchase a brand new home. The builder provides a new home warranty to cover deposits, completion dates labor and material for at least one year after the home was built. It also protects against structural for a minimum of 5 years.

Finalizing the Deal. Meet with your lawyer to discuss insurance, title, and conditions.

Getting Ready to Move. It’s important to get everything in order like electricity, internet/TV, change all your mailing. If you rent, make sure you give your landlord sufficient notice.

Closing Day. This is the day you officially take possession of your home! Your lawyer will complete the paperwork, your payments are finalized and you’ll receive your new set of keys and deed! Congratulations!