Our Beautiful House
  • Home
  • Decorate
    Decorate
    Show More
    Top News
    How to Add Texture to Your Home in Sexy and Practical Way
    October 10, 2020
    DIY Home: Should You DIY Or Call A Pro?
    October 22, 2020
    Top 15 Modern Interior Designs You Need To Know
    June 1, 2023
    Latest News
    Top Halloween Decor Picks to Transform Your Home into Spooktacular Haven in 2023
    October 31, 2023
    10 Home Renovations That You Should Splurge on
    July 8, 2023
    Top 15 Modern Interior Designs You Need To Know
    June 1, 2023
    10 Home Repairs to Leave to the Pros
    May 18, 2023
  • Rooms
    Rooms
    Show More
    Top News
    Bedroom Ideas for Sophisticated Design Lovers
    May 11, 2023
    How to Choose the Best Garage Floor Tiles
    May 12, 2023
    9 Popular Bedroom Flooring Settings to Consider
    April 27, 2023
    Latest News
    5 Nursery Design Trends for the Modern Home
    August 1, 2023
    40 Gorgeously Minimalist Living Rooms That Find Substance in Simplicity
    July 1, 2023
    14 Creative Kids Bathroom Decor Ideas
    May 28, 2023
    Simple Steps of Kitchen Remodeling
    May 21, 2023
  • Outdoor
    Outdoor
    Show More
    Top News
    How to Add Interest to your Garden
    October 6, 2021
    Concrete Landscaping Ideas
    April 18, 2022
    Did You Know Miami Has a Vegan Food Hall? Neither Did We
    May 9, 2020
    Latest News
    5 Best DIY Landscaping Ideas
    November 22, 2022
    15 Fun Backyard Ideas That Kids Will Surely Enjoy
    November 14, 2022
    25 Chic Modern Outdoor Furniture Ideas
    November 7, 2022
    Small deck ideas: 31 budget decking designs for tiny gardens
    October 18, 2022
  • Lifestyle
    Lifestyle
    Show More
    Top News
    Miami is the No. 3 Foodie City in America
    November 19, 2019
    Walt Disney World Emerging As Bubble Site For NBA Return
    July 15, 2020
    South Dade seeks formal Metrorail Ready Program
    September 16, 2020
    Latest News
    The Best Basement Organizing Tips and Tricks
    January 6, 2024
    Top 50 Christmas Gifts for the Entire Family
    December 1, 2023
    Explore 41 Hilarious Thanksgiving Games for Family Fun in 2023
    November 4, 2023
    Top Halloween Decor Picks to Transform Your Home into Spooktacular Haven in 2023
    October 31, 2023
  • Real Estate
    Real Estate
    Show More
    Top News
    Is Getting Pre-approved for a Home Loan the Same as Pre-qualifying?
    June 4, 2020
    Things to Consider before Buying a Home Together
    July 29, 2021
    Bad Home Inspection for Sellers: Common Causes and Reasonable Repairs
    August 7, 2020
    Latest News
    What Are Your Real Estate Goals?
    January 2, 2024
    Two Ways Homebuyers Can Win in Today’s Market
    August 6, 2023
    Home Renovations for the Aging Population
    July 24, 2023
    The Benefits of Owning a Second Home
    July 6, 2023
  • Contact
Reading: Home Buying: 10 Steps to Success
Share
0

No products in the cart.

Notification Show More
Latest News
The Best Basement Organizing Tips and Tricks
Organization
What Are Your Real Estate Goals?
Real Estate
Top 50 Christmas Gifts for the Entire Family
Lifestyle
Explore 41 Hilarious Thanksgiving Games for Family Fun in 2023
Lifestyle
Top Halloween Decor Picks to Transform Your Home into Spooktacular Haven in 2023
Decorate Lifestyle
Aa
Our Beautiful House
0
Aa
Search
  • Home
  • Decorate
  • Rooms
  • Outdoor
  • Lifestyle
  • Real Estate
  • Contact
Follow US
  • Blog
  • Complaint
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Our Beautiful House > Blog > Real Estate > Buyer Guide > Getting Started > Home Buying: 10 Steps to Success
Buyer GuideGetting StartedGuides

Home Buying: 10 Steps to Success

Last updated: 2020/06/07 at 4:42 PM
By Stefan #TheListingBroker - Real Estate
Share
9 Min Read
SHARE

You’ve crunched the numbers, thought about your lifestyle and made the decision to buy a home. It can be a complicated, stressful process.  But knowing what to expect can reduce some of that anxiety and help you confidently find your way to your new home.

To help, here’s a step-by-step guide to the home-buying process. You could swap the order of a few early steps – you can get pre-approved before finding an agent, for example. But you don’t want to find the perfect place first, only to have a better-prepared buyer swoop in and snag it.

Step 1: Check your credit report and score

Before contacting a lender, it’s smart to check your credit report. By law, you can get a free report once a year through Annualcreditreport.com. The report pulls data from the three major credit-reporting agencies: Equifax, TransUnion and Experian. Having the information in hand before you talk with a lender lets you dispute any errors in the reporting. Based on your credit report, Fair Isaac & Co. (FICO) assigns you a credit score ranging from 350 to 850. The higher your credit score, the lower the interest rate on your mortgage. Scores are based on:

• Payment history: Have you paid your bills on time?
• Amounts owed: What is your overall debt?
• Length of credit history: How long have you been borrowing money? Mortgage lenders like to see a long credit history.
• New credit: Have you applied for new credit?
• Types of credit: Lenders like to see a variety of types such as bank cards, car loans and student loans.

So what is a good credit score? You can expect a good mortgage rate at anything above 720. Home buyers who pursue an FHA loan can usually secure a loan if their credit is 580 or over. FICO scores are available at www.myfico.com for a one-time or monthly fee. Once you know your score, you can find out what interest rate you will likely qualify for by researching interest rates on Zillow.

Step 2: Figure out how much you can afford

Or better yet, decide how much you’re willing to pay. Just because you can qualify for a larger mortgage doesn’t mean you want to have that kind of payment each month. Use the mortgage affordability calculator to help determine what you can afford. Now is also a good time to research your housing market and start going to open houses in your prospective neighborhood to give you a good sense of what your money will get you.

Step 3: Find a real estate agent

This person will be your lifeline through the process. Not so long ago, people didn’t have much to go on when selecting an agent. A postcard in the mail or a name on a sign might have been all you had to consider if you didn’t have a personal referral. But now it’s a breeze to check reviews online. Go ahead and meet with a few agents and ask some questions. Your agent is your chief advocate, confidante and hand-holder in the process so you want to find a good fit.

Step 4: Get pre-approved by a lender

It’s a smart move to get pre-approved for a loan early in your home search. Zillow has an easy-to-use tool that lets you find a licensed lender in your area with a history of positive customer ratings, who can help you get pre-approved.

Pre-approval requires the lender to pull the credit information (see Step 1) and assess your financial situation. The lender will then give you a letter that states the amount they would be willing to lend you. If you get in a multiple-offer scenario, being pre-approved may give you an edge because the seller will have more confidence that you will be approved for a loan large enough to purchase their home.

You are not obligated to get a loan from the lender who you get a mortgage pre-approval from. When it’s time to officially apply for a mortgage, it’s best to get loan estimates from at least three lenders to compare their interest rates and fees.



Step 5: Start looking at homes

Let the serious shopping begin! By now you’ve talked things over with your agent and you both know what you really want and need in a home. Armed with this, your price range and knowledge of the local area, look at listings online and with your agent, who will come up with properties for you to tour. Chances are you’ll discover some new things to love or hate about homes and refine your search.

Step 6: Make an offer

For most buyers, this is when the butterflies really show up. Once you’ve found a home you want your agent will work with you to craft an offer. Remember, the listing price is only a starting point. Your agent will understand the market and help guide you to make the most attractive offer, whether it’s below, at or above listing price. Are there any contingencies to your offer? Will you require an inspection? These are all things your agent will help you with. Once you’ve submitted the offer you get to wait. It will seem interminable. You may get neither a simple yes or no but a counteroffer to consider. It can be something of a dance. If you get a solid “no,” it’s back to Step 5. If you get to a “yes,” celebrate!

Step 7: Home inspection day

If your offer called for a home inspection, this is a big day. Sure, you get to have a home inspector look over the home to make sure there are no unseen defects you want to negotiate to have fixed. But more importantly, this is the most time you’ll get to spend in your new home until closing. Go ahead and start measuring things and figuring out what goes where. This may be the last time you are inside the home until it is yours, several weeks from now.

Step 8: Get insurance and establish utilities

If you already own a home, simply call your insurance agent and let them know you’re buying a new home. They will handle writing a new policy. If you don’t have an insurance agent, now’s the time to find one because your lender will require homeowners insurance. Even if you don’t have a mortgage, insurance is a critical part of protecting your investment. You’ll also want to give utility companies your move-in date to establish service. There’s nothing like moving into a cold, dark house because you didn’t get an account with the power company!

Step 9: Closing day

This is the big day. You’ll read and sign papers and then read and sign some more. Even though you’re just sitting around a table, it can be exhausting. But it also means you’re nearing the finish line.

Step 10: Get the keys and move in!

This is it. You did it. You are now a homeowner! Your sale contract will specify exactly how soon you get to move in. Sometimes it’s by a certain time on the day you sign closing papers. Sometimes possession happens a few days after closing. Whenever it is, you’ve just ended the adventure of home buying and started the adventure of homeownership.


SIGNUP FOR NEWSLETTER

Stefan #TheListingBroker - Real Estate June 7, 2020
Share this Article
Facebook Twitter Email Print
How you feel with this article?
Love0
Happy0
Surprise0
Wink0
Sleepy0
Sad0
Angry0
By Stefan #TheListingBroker - Real Estate
Stefan is a Real Estate Broker and REALTOR® with over 8 years of professional experience. Prior to starting his real estate career, Stefan spent 11 years as a foreclosure defense and divorce attorney (quite a combo, huh)? Conducting a real estate business with a a diverse legal background has allowed him to gain unique experiences that make him a well-rounded resource for his clients. Stefan is a proud Florida State University alumni, having earthed his bachelor’s degree in Management, prior to attending law school.
Leave a review Leave a review

Leave a review Cancel reply

Your email address will not be published. Required fields are marked *

Please select a rating!

Our Beautiful House 

  • Home
  • Decorate
  • Rooms
  • Outdoor
  • Lifestyle
  • Real Estate
  • Contact
Subscribe to Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

[mc4wp_form]

Find Us on Socials

© 2022 by #TheListingBroker. All Rights Reserved.

✕

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?