Is buying a home stressful? Yes
Should
you not buy a home because you fear the whole process? No
Buying a home is probably one of the
biggest purchases you will make in your life.
You will make a lot of decisions in what may feel like a very short
period of time - what loan program do I want, how much money do I want to put
down, do I want a 2-story home or a basement rancher - and you may also double
guess yourself from time to time.
The best thing you can do is just try to relax and hire a very good real
estate agent.
There is a whole
process you will go through when purchasing a home. In my opinion step 1 and step 2 are interchangeable.
Step 1 - Hire a Licensed Real Estate Agent
Talk to your
friends and family, ask them what realtor they used in their last
purchase. Were they satisfied with the
assistance they received from their agent?
Was their realtor available to talk to them whenever necessary and were they present for every step of the buying process?
You can even go
online and read personal reviews given by past or current clients.
Once you have
decided which agent you want to work with, it’s a good idea to meet with them
again. In this meeting, your agent will
probably have a couple of documents they will need to get your signature
on. This is very normal.
Step 2 – Talk to a Mortgage Lender and Get Pre-Qualified
Your real estate
agent may be able to recommend a licensed mortgage lender they have worked
with, but also check with your personal financial institution and talk to your
peers.
It is very
important to talk with a few different mortgage lenders before you decide with
whom you want to work. Lenders should be
willing to discuss their rates and different loan programs with you before they
receive a lot of your personal information.
To get pre-qualified, the lender will need to pull your credit history.
DO NOT LET EVERY LENDER PRE-QUALIFY YOU –
PULL YOUR CREDIT!
When your
personal credit is reviewed – by a lender, bank, car dealership, credit card
company, etc – this can hinder your credit score. Technically, when you are applying for a home
loan and a mortgage lender checks your credit, this is not supposed to hurt
your score in any way. However, I always
play on the safe side and suggest that no more than two lenders review your
credit history.
Step 3 – Meet with Your Real Estate Agent and Start House Hunting
Once you are
pre-qualified for a loan, you are ready to start looking for your new
home. The pre-qual will show your loan
program and the price range that your agent needs to stay in.
Have a sit down
meeting with your agent and get to know each other a little bit better. This person is going to be spending a lot of
time with you in the next couple of months and you all do want to build a good professional
relationship.
Discuss what you
are looking for in a new home – number of bedrooms, bathrooms, do you have a
minimum square feet you want to stay above, what about a garage or fenced back
yard, location, move in ready or maybe a fixer upper? The agent will probably take a lot of notes
and do what they need to do to start searching for your new home.
Step 4 – Schedule Showings
By now, your
realtor has sent over listings that match your search criteria, but it is time
to start scheduling appointments to actually go see the homes. Always keep in mind that the photographs from
the listing sheet may not do the home justice – in both positive and negative
ways. Of course, your agent will not
want you to settle for a home, but don’t be so fast to judge a home either. Keep an open mind when viewing the property. Wall colors can easily be changed, original
hardwood floors can be sanded and stained for cheap, smaller doesn't always
have to equal cramped.
If the home is a
possibility in your mind, write out a pros and cons list while you are walking
through each room. It’s better to write
these types of things down while you are still there because everything is still
fresh on your mind. While looking at
other homes, you will realize how you forget about the little things in each
property. It’s also best to not see more
than 4 or 5 houses in a day.
Step 5 – Make an Offer
Congratulations! You have found the house that you love and
are ready to make it your new home.
Together, you
and your agent will decide on a decent purchase price and any other special
stipulations that you may require. Once
all of the correct paperwork is finished, your agent will formally present your
offer to the listing agent. It’s now
time to be patient.
Catherine Moody with Hammontree Real Estate
865-599-8780 or 865-579-3868
cmoodyhomes@live.com
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